PARLIAMENT

Timaru Herald, Volume CXLII, Issue 20536, 30 September 1936, Page 11

PARLIAMENT

LEGISLATIVE COUNCIL By Telegraph—Press Association WELLINGTON, September 29 The Legislative Council met at 2.30 p.m.

Fourteen days leave was granted to the Hon. Sir Heaton Rhodes on account of illness. Tributes were paid to the late Hon. A. F. Hawke, a former member of the Council, and ♦ the Council adjourned for halt an hour. Upon the resumption the debate was resumed on the Mortgagors and Lessees Rehabilitation Bill.

The Hon. V, A. Ward said he thought the Bill was a good one and hoped it would be in the interests of the country.

The Hon. J, McLeod said that the gambler in land was very often the fanner himself. He did not disagree with the objective of the Bill, which carried on the principle that had been established in the last two or three years. The legislation was hardly necessary.

The Hon. C. J. Carrington opposed the Bill. Was nationalisation the object of the Bill? he asked. There should be a revaluation of land in New Zealand on the productive value. He thought that the Bill went too far. The Hon. H. A. Russell said he was of the opinion that the plan underlying the Bill was State ownership of land and the nationalisation of industries. The Bill would take away the freehold from the individual and invest the land in the State. The Hon. W. Perry said the mortgagee was bound to lose some of his money and the mortgagor was bound to get some benefit. If primary produce prices rose the mortgagor -of the benefit of the Increase but the principal sum advanced by the mortgagee would have been reduced and that amount by which it had been reduced from the point of the mortgagee would have gone, and there should oe some provision by which the mortgagee would get the benefit of any Increased values.

The Hon. M. Fagan said the Bill was going only one more step in the direction that had been followed by Governments down the ages, and the legislation would apply to floating charges and debentures that were exempted under the 1933 Act. The Government would consider all cases and make exemptions only where they were justified. The motion for committal was agreed to on the voices. In committee the Hon. R. McCallum moved an amendment to make the Bill apply only to mortgages executed before April 17, 1933, the date of the passing of the previous legislation. The amendment was defeated by 19 votes to 7.

Mr Perry moved an amendment to the effect that where a mortgagor applied for a reduction of interest the rate should not be reduced to less than that charged by the State Advances Corporation. The amendment was defeated by 17 votes to 9. The Bill was passed and the Council adjourned at 11.10 p.m.