ADJUSTMENT OF MORTGAGES

Southland Times, Issue 23000, 21 September 1936, Page 8

ADJUSTMENT OF MORTGAGES

A Complex Problem BILL IN COMMITTEE STAGE MEASURE IMPROVED BY AMENDMENTS (From Our Parliamentary Reporter). Wellington, September 20. The mortgage legislation, which for the last few years has come to be an almost inevitable feature of every session of Parliament, practically monopolized the attention of the House of Representatives during the week just past. The present Government, like its predecessors, has found the problem of mortgage adjustments to be one of countless complexities. The voluminous nature of the Mortgagors and Lessees Rehabilitation Bill provided proof of this, and if any further proof were needed of the difficulties which arise from Government intervention in the field of mortgage liability it was given by the long list of amendments to the Bill introduced on Friday.

It is quite possible that even now Labour’s mortgage legislation is not in its final form. Perhaps because of the complex nature of the Bill and the immense amount of detail it contains, there has been no clearly defined line of Opposition criticism. During the discussion in the House the general attitude of the Opposition has been that the Bill offers no improvement on the former legislation and that in so far as it is calculated to leave many farmers still fully mortgaged after adjustment with no equity in their properties, it cannot accomplish much in the rehabilitation of mortgagors. Government’s Intention. The Minister of Finance, the Hon. W. Nash, has replied to this argument by stating that the Government’s intention is to lighten generally the load of mortgage liability so ’.hat it can reasonably be carried in every case by the average efficient farmer. Thereafter, subject to certain safeguards, the onus will be on the farmer so to handle his affairs with the assistance of adjustment commissions that he will establish his own equity for himself. The general impression appears to be that the amendments introduced on Friday will result in a considerable strengthening of the Bill. Although consideration has not yet been given in committee to a new clause restricting the sale of properties concerning which adjustments have been made, it is regarded in the main as an important concession, giving the necessary measure of protection to the rights of mortgagees. So far two dull sitting days have been spent in committee on the Bill with the result that 46 out of the 84 clauses have been approved. This rate of progress has been reasonably satisfactory, especially when it is considered that a day’s interval had to be allowed between Wednesday and Friday owing to the fact that the drafting of the Government admendments had not been completed. As it was, the Leader of the Opposition, the Rt. Hon. G. W. Forbes, voiced what appeared to be a reasonable complaint on Friday when he said it was hardly fair to resume the committee stages when members were not fully acquainted with the amendments. Local and Private Bills.

- Some interest was caused during the week by the attitude of the Prime Minister, the Rt. Hon. M. J. Savage, towards the introduction of local and private Bills at this late stage of the session. The Standing Orders on local Bills provide that they must be introduced within 42 days of the beginning of a session, and recently formal requests for the suspension of the Standing Orders to permit of the introduction of local Bills have drawn considered rebukes from the Prime Minister. On Friday morning, when local Bills were being considered, Mr Savage issued a warning that in future be would insist on a rigid compliance with the rules of the House. They had been laid down, he said, to provide for the orderly conduct of the business of Parliament, and local bodies and others had no right to ask that they should be lightly set aside. A minor comedy occurred immediately afterwards when, one after another, three Government members rose to ask for leave to introduce local Bills. When each in turn solemnly requested a suspension of the Standing Orders there were roars of delighted laughter from the House. The business of the House for the coming week has not yet been finalized. The Prime Minister promised last week to set aside Tuesday for the consideration of the Public Works Statement and Estimates, and it is his desire to have the discussion completed in one day. Mr Savage also suggested that the debate on the Public Works policy might be broadcast, but in an interview yesterday he indicated that it was not proposed to proceed with this proposal. At least another day will be required for the final passage of the Mortgagors and Lessees Rehabilitation Bill, but when once that measure is passed the order paper will become somewhat attenuated.

Taxing Amendments.

The Land and Income Tax Amendment Bill was to have been introduced last week, but circumstances forced Mr Nash to devote all his attention to his amendments to the Mortgage Bill. However, the taxing amendments should appear this coming week, and if the Prime Minister’s suggestion is adopted they will be considered in conjunction with the annual taxing Bill, which has already been introduced. The passing of these two Bills is a matter of some urgency, as until they become law this year’s income tax assessments cannot be made.

The Local Body Reform Bill, prepared by the Minister of Internal Affairs, the Hon. W. E. Parry, and providing for the amalgamation of local bodies, is still on the stocks and may also appear this week, while there is a prospect of the introduction of amendments to the Workers Compensation Act, prepared by the Minister of Labour, the Hon. H. T. Armstrong. Owing to the protracted nature of the session and the fact that most of the Government’s major legislation has been dealt with, members on both sides of the House appear to be losing some of their zest. There is a fairly general desire to see the session brought to a close as soon as possible, and even if the Government decided to proceed with the Local Body Reform Bill and the proposals advanced by the Minis - ter of Industries and Commerce, the Hon. D. G. Sullivan, for the regulation of industry, all the necessary business should be completed by the middle of next month.