CORPORATION BILL

Taranaki Daily News, 21 February 1935, Page 7

CORPORATION BILL

DEBATE IN PARLIAMENT

LABOUR POLICY ATTACKED BOTH SIDES PRESENTED STATE ADVANCES 11 A TOY” By Telegraph—Press Association. Wellington, Last Night. The second reading debate on the Mortgage Corporation Bill was resumed in the House of Representatives to-day by Mr/ W. A. Bodkin (Co., Central Otago), who attacked the Labour Party s policy to assist the farmer.. He said Labour, according to one of its pamphlets, Would increase the exchange, rate from 125 to 150 per cent. That was a bid tp secure the fanners’ vote, but how could the working man’s wife balance her budget? The working man. was overlooked. He alleged that Labours, policy was a direct attack on the savings of die people. • ’ The Minister of Finance, continued Mr. Bodkin, was faced with the problem of securing money, and he had . to gain the confidence of the investor. If the farmer were to dictate the terms .it would make it impossible fbr the Minister to get the money. Mr. W. E. Parry (Lab., Auckland Central) said the. Bill was only a duplication of Acts already in existence. Every time a section of the people was in difficulties the Government passed someTaW in an endeavour to show the people that it was trying to handle the position, but it was just window-dressing. The whole proposal was simply to borrow their way out pf debt. It was merely postponing the evil day. He wanted to know where the thing was going to end. The. Government . was handing over the departments to boards. The State Advances and Railways Departments had gone and broadcasting had gone. Highways and unemployment had also been handed to boards:. /• ■’ i I; “GOES TOO FAR.” Mr. W. A. Veitch (Ind., Wanganui) said thb Bill went too far. He thought a Bill that contained such vast changes in the existing order should not be passed within a few months of a general election. The matter should be submitted to the people. He considered New Zealand should build on the experience of other countries rather than indulge in a hew scheme of reconstruction for the whole monetary system. There was abundant money awaiting investment in New Zealand. What was wanted was confidence and the feeling that investors would be left alone after they had sunk their money. He contended that a search should be made for further markets. Doubtful and safe assets of the Government would be handed over to .the corporation in such a way that the profits would go to the corporation and the losses would revert to the Crown. Mr. A. D. McLCod- (Co., Wairarapa) . alleged that the State Advances Department had been a plaything of political parties since.its inception, and he did not except the Reform Party from that statement. In introducing the present legislation the Minister of Finance was making an honest attempt to equalise the difficulties that existed between borrowers and lenders, and he congratulated him on his courage, . .. . Mr. J. A. Lee (Lab., Grey Lynn) said he could not work up much enthusiasm about the Bill.-

Mr. A. Stuart (Co.* Rangitikei) said that as far as he could see the only direct benefit from the corporation would be received by the farmer who was unable id meet his interest charges. The debate was adjourned and the House rose at 10.30 p.m.

REPLY TO FARMERS CONTROL OF CORPORATION. NOT BY THE SHAREHOLDERS. Denial of the suggestions made at the Farmers’ Union rally at Hawera pn Tuesday that the Mortgage Corporation would be under joint, stock control is given by the Minister Of Finance, the Rt. Hbn. J. G. Coates, in a telegram to Mr. E. K. Cameron, South Taranaki provincial secretary, yesterday. Replies were also received from the Prime Minister (the Kt. Hon. G. W. Forbes),' the Minister of Education (the Hon. S. G. Smith) and the Leader of the Opposition (Mr. M. J. Savage) acknowledging receipt of the resolution carried by the meeting. In his reply, Mr. Coates says the provision made for shareholders does not allbw of joint stock control, as Government representatives on the directorate will be five as against three shareholder directors. “It is not intended,” Mr. Coates continues, “that the Mortgage Corporation will be a profit-making machine, but all costs must be covered. The provisions of the Bill are designed to give the corporation opportunity to raise money at iow cost.”