FARMING FINANCE

Taranaki Daily News, 9 November 1935, Page 8

FARMING FINANCE

MR. POLSON STRONGLY CRITICISED. MR. P. SKOGLUND AT TARIKI. Criticism of Mr. W. J. Polson’s statements regarding the Rural Mortgagors Final Adjustment Act and his reasons for supporting the Act was voiced by Mr. P. Skoglund, Labour candidate for the Stratford electorate, in an address at Tariki last night. Mr. Polson had stated that in its original form the Act ignored any provision for retention of any equity and he opposed it on that ground in particular, said Mr. Skoglund. He had also said that under the stay order a good allowance was made to the farmer who worked for that period without worry and at that time his property was revalued on the five years’ operations and the mortgage adjusted, leaving 20 per cent, equity for refinancing. The truth of the matter, said Mr. Skog- t lund, was that the Bill as originally drafted did contain a provision for an equity up to 20 per cent., but when it was presented to the House that provision had been deleted and this fact was probably the cause of Mr. Polson’s question in his speech on the second reading of the Bill when he asked, “What section of the community is it that is able to exert sufficient pressure and strength to say to the Government, ‘Put (this legislation on the Statute Book in this form, and do it now,’ and the Government does it.”

There was no provision in the Act for an equity for the mortgagor at the end of the budgetary period, said Mr. Skoglund, and Mr. Polson’s statement that there was showed either a lack ot knowledge of the true facts of the case or an attempt to mislead the farmer. In Mr. Polson’s opening remarks in his speech on the second reading of the Bill he said, “I want to say at the outset that, while I am disappointed with the contents of the Bill, I am more disap--1 pointed at some of the amendments which have been indicated by the Minister in moving the second reading, and particularly at that amendment cutting out the 20 per cent, equity at the end of five years.” The Bill, said Mr. Skoglund, was certainly amended in committee, but the provision regarding an equity' was not restored, but in its place provision was made for compensation only if the mortgagor left the farm at the end of the budgetary period. Mr. Skoglund explained' the provisions regarding compensation and showed how little the mortgagor could expect if he decided to leave the farm. Mr. Skoglund also said that a mortgagor deciding to carry on after the budgetary period did not receive compensation and carried on mortgaged up to 100 per - cent, of all his assets.