SECOND READING

Taranaki Daily News, 22 March 1935, Page 7

SECOND READING

FINAL MORTGAGE BILL MAJORITY VOTE 44 TO 26 REPLY MADE TO CRITICS CHANGING OF CONTRACTS QUESTION OF NECESSITY By Telegraph—Press Association. Wellington, Last Night. The second reading of the Rural Mortgagors’ Final Adjustment Bill was. carried in the House of Representatives tonight by 44 votes to 26. The debate on the second reading was resumed by Mr. R. Semple (Lab., Wellington East), who did not think it was possible to bring the country back to prosperity until they lifted all people, not one section only. All measures in recent years had concerned the farmers, but there were others in distress ■ besides the farmers. He did not think the present Bill would assist anyone. He depreciated the action of the Government in taking the pensions of returned soldiers in payment for interest on mortgages. Mr. F. Jones (Lab., Dunedin South) said a “bold constructive” policy had brought .50 per cent, of dairy farmers to the verge of bankruptcy and had antagonised the buyers of New Zealand produce. He quoted a number of articles the prices of which he declared had been increased by the increase of the exchange rate and the imposition of the sales tax. The present Bill, he added, was a continuation of the Government’s deflationary policy and was class legislation. While workers in the cities received no relief the bondholders’ security was made secure. The present Bill would increase costs, and those costswould have to be borne by the farmers as well as other sections of the community He expressed regret that no Minister had indicated to the House the result of the recent caucuses and whether the Bill was to be proceeded with. Mr. J. A. Nash (Co., Palmerston North) said the main object of the Bill was to enable the farmer to remain on the land. Referring to the adjustment commissions he said that to February 28 last applications referred to the commissioners numbered 12,147. The estimated number of applications filed was 14,000. The rati© of rural to urban applications was 60 to 7. The ratio of applications refused to those filed was one to eight, or 1550. APPLICATIONS FOR RELIEF. The number of applications in which relief was granted was 10,850, and the ratio of applications filed to those settled privately—that was without recourse to the court—was one to two. Therefore the estimated number of cases settled was 21,700 and the total number of cases in which relief was granted, either privately or by recourse to the ‘ court, was 32,550. He thought the mortgagors relief commissions had accomplished a great deal in the short time they had been operating. The Rt. Hon. J, G. Coates in reply to the debate said the last thing to a man brought up in New Zealand or Britain was interference in contracts. He had listened to a number of members who said contracts should'not be interfered with, but he wondered if that was so in time of emergency. The House had to decide whether there should be a general adjustment between creditor and debtor. It was recognised that much of the indebtedness on rural land to-day could not be recovered, and it was not fair that ?? it should be recovered. He believed a number of people did not realise the tremendous difficulty that faced the primary industry on which they depended so much. . He thought it was indicated _in the Bill that the Government’s intention was to keep all energetic and capable farmers on the land and he considered the best adjustment could be achieved if it were left to a body of capable men skilled in all departments. He had not heard anyone in the House say it was not a problem and it had been said something might be done. The Government had decided it was essential and necessary that the position should be faced. As the result of careful consideration over the past two years the Government had achieved certain results, but it had not dealt with the over-burden. The provisions of the Bill were really compulsory conciliation. /. FREEDOM TO VOTE. Mr. Coates indicated that his party was free to vote as it wished. Mr. W. E. Barnard: Did the Minister infer that the Bill would go to face the vote of the House? Mr. Coates: If it is suggested the screw has been put on any members of the party, I have never heard such a ridiculous suggestion. Every member of the party, if he had definite opinions, could exercise them. He contended that it had been the making of thousands of farmers in the country to-day that they had agreed to work under a budget. Mr. Coates said it was a foolish nation that did not live under a budget, and every individual in the nation should live according to a budget. The second reading was carried by 44 votes to 26, the division list being as follows:— AYES. Ansell Linklater Bitchener ' Lye Bodkin McDougall Broadfoot McLeod Campbell McSkimming Clinkard Macmillan Coates MacPherson Cobbe J- N. Massey Dickie W. W. Massey Endean Murdoch yield J. A. Nash Forbes Ngata Hamilton Polson Hargost Ransom Harrison Reid Hawke Samuel Healy Smith Henare Stuart Holland Sykes Holyoake Te Tomo Jull ’ Wilkinson Kyle Young NOES. ( Armstrong W. Nash Atmore O’Brien Barnard Parry Richards Coleman Rushworth Fraser Savage Howard Schramm Jones Semple Jordan Stallworthy Langstone Stewart jjgg Tirikatene McKeen ] Munro Webb.