Mr Coates’s Promise.

Star (Christchurch), Volume LXVI, Issue 20540, 15 February 1935, Page 6

Mr Coates’s Promise.

No Evictions

Unemployed as State Mortgagors. * Star ” Parliamentary Reporter. WELLINGTON, This Day. THERE will be no evictions without the ■** consent of the Minister of Finance, when present State mortgagors, who are unable to keep up the payments on their homes through unemployment, come under the control of the Mortgage Corporation. An assurance on this point was given last night in the House by Mr Coates, who outlined the terms of the agreement which in this connection would be entered into between the Government and the Mortgage Corporation. “ One of the main problems that have to be met in connection with the transfer of Slate securities to the proposed corporation lies in the provision which must be made to ensure that those State mortgagors who. through no fault of their own, find themselves out of employment, and thus unable to meet their commitments under their loans to the State, shall not suffer,” said the Minister. “ Some reasonable arrangement with the corporation is impel ative, so that the corporation should not be embarrassed, in its administration in taking over State securities that might require in some cases and in the ordinary v/ay of its business some drastic action against owners or occupiers. Life Savings Invested.

“ It is not necessary to stress the conditions and the circumstances of some of the mortgagors or occupiers referred to. except to point out that in many cases their life savings have been invested in their homes, and the economic pressure has meantime gore beyond their control. Every reasonable latitude should, under the circumstances. be extended to th*em in order that they might have the opportunity eventually *of retaining their homes and re-estab-lishing themselves in our community.

“ Difficulties will exist in practice unless it is clearly stated that the taxpayers of the Dominion have also to be considered in any proposed arrangement of this nature. It will be a condition precedent to consideration that the owner or occupier of a State security taken over by the corporation has done qnd is doing his share in support of his case. The measure of his effort will be gauged in relation to his payments and the condition in which the security has been kept. Past experience in the State Advances Office will afford a valuable guide as to reasonable payment by a particular mortgagor. When these essential terms exist it may be said a prima iacie case has been made out for considerate n.

“ The corporation cannot be expected to assume the liability, and it already exists as one of the State. I propose to leave the liability where it now rests, namely with the State, and to meet the situation by entering into an agreement with the corporation, when it is functioning, by which that body will not be at liberty to eject an owner or occupier of a State security, where that person is on relief owing to unemployment, without the prior consent cf the Minister of Finance. The corporation will not be financially prejudiced in any way. and the State will be assured that unnecessary hardship has not been inflicted, if avoidable within reasonable limits.”