CORPORATION BILL

Taranaki Daily News, 21 March 1935, Page 7

CORPORATION BILL

AMENDMENTS PROPOSED UPPER HOUSE DISCUSSION COMMITTEE SUGGESTIONS CHANGES IN MACHINERY Br Telegraph—Press Association. Wellington, Last Night. The Mortgage Corporation of New Zealand Bill was reported back from the Statutes Revision Committee with- amendments in the Legislative Council tonight. The amendments provide that every holder of shares in the corporation must make a statutory declaration that he or she is not the possessor ’of more than 5000' sHqtssInstead of two joint mangaging directors the committee suggests that there should be one. managing director and an assistant managing director. The Bill as passed by the House provided that one shareholders’ director appointed in the first place by the Gov-ernor-General should retire in 1938, a second in 1939 and a third in 1940,.and the committee’s, proposed amendment is that the retirement years should be 1937, 1938 and 1939. As the Legislative Council has no power to make amendments to clauses of the Bill affecting the finances of the State the committee has recommendedthat the total of directors’ fees . shall not exceed £2500 instead of £3OOO. A further amendment suggested by the committee is that associate directors appointed by the board of directors shall be appointed for a term not exceeding five years but shall be eligible for reappointment. It is proposed also that associate directors shall receive no remuneration. SECURITY FOR LOANS. The Bill as passed by the House laid down that moneys lent by the corporation shall be secured by way of first mortgage of land or of interest in any such land with or without any other security as the board of directors may think fit. The committee proposes that power to lend on any other security except land should be deleted from the legislation. In moving the second reading of the Bill the Hon. R. Masters said the Bill represented the desire of the Government to stabilise the farmers’ mortgage system. The farmer was entitled to have the . best conditions of the money market. Stabilised finance based on correct land values and not inflated values was more important than cheap money. It was desirable that there should be cheap money, but after all the value of money had a direct relationship to supply and demand. The council adjourned the debate.