MORTGAGE BILL

Wanganui Chronicle, Volume 79, Issue 68, 22 March 1935, Page 8

MORTGAGE BILL

THE SECOND READING. A COMFORTABLE MAJORITY. I Per Press Assoslatlon. J WELLINGTON, March 21. The second reading debate on the Rural Mortgagors Bill was resumed, in tho House of Representatives this afternoon. Mr R. Semple said he did not think it possible to bring the country back to prosperity until they lifted all the people and not one section only. All the measures in recent years had centred round the farmers, but there were others in distress besides the farmers. He did not think the present Bill would assist anyone. He deprecated the action of the Government in taking the pensions of returned soldiers in payment of interest on mortgages. Mr F. Jones said that the bold Constructive policy had brought 50 per cent, of the dairy farmers to the verge of bankruptcy, and had antagonised the buyers of New Zealand produce. He quoted a number of articles the prices of which he declared had been increased by the increase of the exchange rate and the imposition of the sales tax. The present Bill, he added, was a continuation of the Government’s deflationary policy, and was class legislation. While the workers in the cities received no relief the bondholders’ security was made secure. The present Bill would increase costs, and those costs would have to be borne by the farmer as well as the other sections of the community. He. expressed regret that no Minister had indicated to the House the result of the recent caucuses, and whether the Bill was to be proceeded with.

Mr J. A. Nash said the main object of the Bill was to enable the farmer to remain on the land. Referring to the Adjustment Commission, he said that to February 28 last applications referred to tly commissioners numbered 12,147. It was estimated that the number of applications filed was 14,000. The ration of rural to urban applications was 61 to 7, therefore rural applications numbered 14.400. The ratio of applications refused to those filed, was one to eight, or 1550. The number of applications in which relief was granted was 10,850. and the ratio of applications filed to those settled privately, that was without recourse to the Court, was one to two. Therefore the estimated number of cases settled was 21,700 and the total number of cases in which relief was granted either privatelv or hv recourse to the Court, was 32,550. He thou Vr the Mortgagors’ Relief Commission lurf accomplished a great deal in the short time they had been operating. Minister Replies Hon. J, G. Coates, in reply, said the very last thing a man brought up in New Zealand or Britain was interference in contracts. He had listened to a number of members who said that contracts should not be interfered with but he -wondered if that were so in a time of emergency. The House had to decide whether there should he a general adjustment between creditor and debtor. It was recognised that much of the indebtedness on rural land to-day could not be recovered, and it was not fair that it should be recovered. He believed that a number of people did not realise the tremendous difficulty that faced the primary industry on which they depended so mulch. He thought it was indicated in the Bill that the Government’s intention was to keep ill energetic, capable farmers on the land, and he considered the best adjustment could he achieved if it were left to a body of capable men, skilled in all departments. He had not heard anyone in the House say that it was not a problem, and it had been said that something might he done. The Government had decided that it was essential and necessary that the position should be faced up to, and as a result of careful consideration over the past couple of years it had achieved certain results, hut it had not dealt with the overburden. The provisions of the Bill were really compulsory ‘conciliation. He indicated that his party was free to vote as it wished. Mr W. E. Barnard: Did the Minister infer that the Bill would go to a face vote of the House? Mr Coates: If it is suggested that the screw has been put on any members of the party, I never heard such a ridiculous suggestion. Every mem? ber of the party, if he has definite opinions, can exercise them. Mr Coates contended that it Lad been the making of thousands of farmers in the country to-day that they had agreed to work under a Budget. He said it was a foolish nation that did not live under a Budget, and every individual in the nation shoul live according to the Budget. The House resumed at 7.30 p.m The second reading of the Rural Mortgage Bill, after Mr. Coates had concluded, was carried by 44 to 26, the division list being as follows: Ayes: Messrs. Ansell, Bitchener, Bodkin, Broadfoot, Campbell, Clinkard, Coates, Cobbe, Dickie, Endean, Field, Forbes, Hamilton, Hargest, Harrison, Hawke, Healy, Henare, Holland, Jlolyoake, Jull* Kyle, Linklater, Lye, McDougall, McLeod, ilcSkimming, MacMillan, MacPlierson, J. N. Massey, W. W. Massey, J. A. Nash, Ngata, Polson, Ransom, Reid, Samuel, Smith, Stuart, Sykes, Te Tomo, Wilkinson, Young. Noes: Messrs. Armstrong, Atmore, Barnard Carr. Coleman, Fraser. Howard, Jones, Jordan, Langstone, Lee, McKeen, Munro, W. Nash, O’Brien, Parry, Richards, Rushworth, Savage, Schramm, Semple. Stalworthy Stewart, Tirikatene. Veitch and Webb.