ANOMALY IN RELIEF ACT

Taranaki Daily News, 10 November 1932, Page 7

ANOMALY IN RELIEF ACT

QUESTION ASKED IN HOUSE

, PRIME MINISTER MAKES REPLY.

COURT POINTS TO GRAVE DEFECT

“ADEQUATE JUSTICE PREVENTED”

(By Wire —Parliamentary Reporter.) Wellington, Last Night.

Legal problems of dealing with farm mortgages under the relief legislation were°discussed by the Rt. Hon. G. W. For'bes in reply to a question by Mr. W. J. Polson (Stratford) in the House to-day. Mr. Polson asked whether the Prime Minister’* attention had been drawn to the statements of the Chief Justice, Sir Michael Myers, and Mr. Justice O'stler with reference to the Mortgagors’ Relief Act, in which at Napier °bn June 4 the Chief Justice said: “I also made representations upon the matter and suggested, as Mr. Justice Ostler had suggested, that the power of the Court should be amended by amending the Act.” Mr. Justice Ostler in giving judgment on a mortgage to the Public Trustee referred to “a grave defect in the Mortgagors’ Relief Act preventing the court in the exercise of its jurisdiction from doing adequate justice.” It was asked if legislation to remedy the position would Ibe brought down. ‘■'The question refers to the relative advantages that a mortgagee of farmers’ stock and other chattels appears to enjoy over a mortgagee of his land,” said Mr. Forbes. The position was considered by the Government when the Bill amending the Mortgagors’ Relief Act was before the House last session, he added, but owing to the practical difficulties involved it was found impossible to provide any satisfactory remedy. “It has to be borne in mind that a mortgage of stock is often not merely for the purpose of securing a definite and fixed amount but is to secure an advance and further advances,” continued the 'Prime Minister. “In so far as a stogk mortgage secures a fixed loan there is no difficulty in adjusting the relative rights of a stock mortgagee and 'a land mortgagee, but it has not ibeen considered expedient to attempt to lay down conditions governing the making ’by a stock mortgagee of ‘further advances’ for the purpose of enabling a farmer to continue to carry on his farming operations.”