CORPORATION BILL

Taranaki Daily News, 23 March 1935, Page 9

CORPORATION BILL

DEBATE IN UPPER HOUSE STATE GUARANTEE SUGGESTED. SIR FRANCIS BELL’S OPINION. MINOR AMENDMENTS SOUGHT. By Telegraph—Press Association. Wellington, Last Night. The second reading debate on the Mortgage Corporation of New Zealand Bill was resumed in the Legislative Council. . The Hon. E. R. Davis welcomed the Bill which, he said, would stabilise the mortgage system. There was much idle land in New Zealand and cheap money would assist in its development. He thought the inclusion of shareholder capital would strengthen public confidence so far as investments were concerned. The Hon. R. McCallum said there had been much criticism of the Bill, but If there was a better method of handling the problems confronting the farmers to-day then let it be put forward by those who were criticising. The Hon. T. Bloodworth opposed the Bill and said it departed from the recommendations of the Dairy Commission, though the legislation was supposed to be based on that report. Sir Francis Bell said he did not believe the plan proposed was the best. It was essential that dairy farmers should be provided with sufficient money to equip their farms with apparatus to ensure cleanliness, as the quality of the Dominion’s products was impaired by insanitary conditions. The Bill stated that the country was not to be liable for the bonds. The country must be liable. Why should 23,700 workers’ mortgages which were not connected with the farming industry be transferred to the corporation? Sir James Allen said the Government should make a statement as to how far the existing legislation dealing with State Advances loans would be put into operation. The Hon. W. Perry said that one aspect of the Bill which appealed to him was the amalgamation of the Government departments, as the corporation was free from political influence. The Bill was passed later in the afternoon. It was reported from the Statutes Revision Committee with a number of amendments, mainly of a minor nature. The committee recommended that the two joint managing directors should be replaced by a managing director and an assistant managing director, but the amendment was defeated by 12 to 10. An amendment from the committee providing for the appointment of shareholders’ directors one year earlier than was proposed by the Bill was agreed to on the motion of Sir James Allen. It was recommended that dividends on shares be reduced from 4j to 4 per cent. The recommendation will be considered by the House.