M.P. STRONGLY ATTACKS RURAL CREDITS PLAN.

Star (Christchurch), Issue 18547, 22 August 1928, Page 11

M.P. STRONGLY ATTACKS RURAL CREDITS PLAN.

“ IS OF NO REAL VALUE,” DECLARES MR LYSNAR

(Special to the “ Star.”) WELLINGTON, August 22. “That rural credit tiling,” declared Mr Lysnar in the House last night, “is of no real value.” He said that it was not making available sufficient money for the assistance of the farmers. The Minister of Finance (the Hon Downie Stewart) : There is plenty of money for them, if they have got the security.

“I have heard that cry before,” said Mr Lysnar. “There is not plenty of money.” He said that he had met an unfortunate gentleman on Monday who had good security. He wanted £9OOO, and he had the security to offer, but he ; could not get the money. “I am getting tired of that sort of talk,” he said, referring to the Minister’s interjection. “I want to see something more practicable done. It is a great trouble to get any advance at all. Advances are centralising into the Government’s hands only. Too many restrictions are being imposed. The farmers should be made more selfreliant. (Hear, hear.) Let them start their own banking institutions.” The Government should back up a system of farmers’ long-term mortgages as suggested by the Parliamentary Committee. That would solve the problem. The present system was of no real value. “It is offering the country a spoonful when, it wants a bucketful,” ho declared amidst laughter. The rural credits scheme did not, would not, and could not meet the position. A voice: What do y.ou suggest? Mr Lysnar: I suggest what that committee recommended, that there should be an agricultural bank for long-term mortgages and no limit to the mortgage. (Laughter.) And advances up to 65 per cent. In every country where that has been tried it has been successful.