RURAL RELIEF

Waipa Post, Volume 45, Issue 3210, 30 July 1932, Page 5

RURAL RELIEF

NEW SCHEME SUGGESTED. CHARGES ON FARM LANDS. A scheme for the registration of charges on farm lands to secure to the State some portion of unemployment relief moneys expended in the improvement of farm lands, made at a recent meeting of the Masterton Unemployment Committee, was further considered at a meeting of the committee last Tuesday evening, when Messrs A. E. Prentice and H. E. Gardiner submitted a report on the matter. The committee decided to forward the proposals to the Farmers' Union for consideration.

"We suggest," said Messrs Prentice and Gardiner, " that all moneys paid in wages by the Unemployment Board under scremes 4a. 4b, or No. 5 should be expended solely in works of a permanent improvement nature, such as bushfelling, stumping, clearing, draining, stoning or fencing, etc., and that the total cost of the wages expended in such work should be secured to the State under a registered charge upon the title of the land concerned, such, charge to take priority over all existing mortgages in the same way as charges registered by power boards and other local bodies. We are further of the opinion that no interest should be imposed under the charge system, and that the amount of the charge should lie on the title for ten years, or until such time as the farm lands may exchange hands (whichever period is the shorter), when the charge must be paid off. This means that the debt charge is also not transferable.

" The point has been raised that morgagees' rights may be prejudiced by registration of such a charge, but we fail to see how such objection can be sustained. For example, a farm is mortgaged for, say 10,000, and of the aera mortgaged 150 acres are not productive. By the expenditure of a reasonable sum the 150 acres can be brought into productivity, thus increasing the production of the land and enhancing the security of the mortgagee. As charges are paid off, the amounts can be distributed from the Consolidated Fund to the various borough or county councils in the district in which the farms are situated, thus helping to reduce future taxation, and hez'ein prospective landowners will receive the benefit, or, as an alternative, the moneys so recov-1 ered could remain in the Consolidated Fund for use in any national emergency which may arise." The point was stressed -that there was no desire to rush the scheme, which was put forth as a suggestion for consideration by interested parties. Criticism and suggestions for its improvement were invited. It was decided that the proposal be placed before individual members of the Farmers' Union executive with a view to discussion at a later date, probably with members of the Unemployment Committee.