AID FOR FARMERS

Timaru Herald, Volume CXXXIX, Issue 20054, 11 March 1935, Page 8

AID FOR FARMERS

THE GOVERNMENT’S PROPOSALS

OUTLINE BY MR COATES By Telegraph—Press Association AUCKLAND, March 10. The efforts being made by the Government to rehabilitate the farmer were outlined by the Minister of Finance (Rt. Hon. J. G. Coates) speaking at the Kumeu show. Dealing with t 1 - Mortgage Corporation Bill, the Minister said a good deal of criticism had come from people who contended that the Bill would not help the farmer or reduce his load of debt. “It should be made very clear that the Mortgage Corporation is only part of our proposals,” said Mr Coates. The main purposes of the corporation are to provide finance at lower interest rates, and to place mortgages on a sounder basis, that is, a long term table mortgage, in addition, the Corporation will lend up to 80 per cent, of the valuation of the property in any case where mortgage adjustments are being made. “The Rural Mortgagors Final Adjustment Bill, to be introduced on Tuesday, is perhaps, the major portion of the legislation,” continued the Minister. “This provides:— (1) “That no competent farmer will be put off his property merely because the depression has reduced his ability to pay his debts. (2) “No creditor can sue him for debt if his is a case of which the adjustment commission approves. (3) “For a period he shall work with his income so allocated as to give him reasonable living expenses, working expenses, etc., the rest to go to his creditors. (4) “At the end of the period the property is valued mainly on its earning capacity to determine what amount of debt it can carry. (5) “The rest of the debt will be written off. (6) “That where it is deemed fair and reasonable an equity of up to 20 per cent, in the property may be given to the farmer. This does not mean that in every case a 20 per cent, equity will be allotted. Every case will be taken on its merits.”

Mr Coates said the whole proposal was designed to put the farmer on a sound footing where he is no longer in danger of being sold up. No longer would farmers be losing heart in the face of an intolerable debt burden.