MORTGAGE ADJUSTMENT

Wanganui Chronicle, Volume 79, Issue 250, 22 October 1936, Page 6

MORTGAGE ADJUSTMENT

THE RECENT LEGISLATION ■■MAI BE USEFUL,” SAYS FARMERS’ PRESIDENT An opinion was expressed by Mr W. " Mullholland, Dominion president o£ the New Zealand Farmers’ Union, in an address delivered in Wanganui yesterday, that the Mortgagors' and Lessees’ Rehabilitation Act, if administration was sympathetic, would assist farmers to win bad' their hardearned equity in land. "While there were good points about the previous legislation I believe that this is the most satisfactory mortgage adjustment legislation we have had.” he said, "but I must attach a proviso to that—provided that administration is sympathetic!” He pointed out that a great deal of the legislation the Government had brought down to date was noted for its indefiniteness. The Government seemed to be indefinite on many critical points. A good deal of what had been brought down could well have been framed by a most conservative party, while some of it could be used to operate a most extreme policv. New Zealand could only wait and see what was likely to result. The most important point in the Mortgagors’ and Lessees' Rehabilitation measure was the method whereby the basic value of the land was to be determined. In the previous legislation a period of five years was allowed in uhich to make a trial of any order that was made, and correct or adjust A c ? m pensatory clause had

neon included permitting a margin of -0 per cent. Under the present Government s legislation, once an order came into force it would be final and there would be no provision for adjustment if an error had been made in the vital matter of arriving at the basic value. As a result of the activlty of the Farmers’ Union a clause

had been inserted in the Act which the speaker, though he was not a lawyer, believed would permit of a certain amount of adjustment. A most important omission the speaker said, was that of not allowing management wages for the farmer in fixing the cost at which a farm could be run. The basic value ot a farm could not be taken into account properly without allowing a margin of profit. If that margin 01 profit was not there the scheme was not workable, in that the farmer had no money to put aside to meet a bad season. He would have a chance of building up a reserve and would get behind in his payments and become likely to foreclosure. A Voice: We have been used to that for the past five years. Mr MuHholland thought that the Government was aware of the position, and he felt that if the administration was mindful of realities this legislation would be useful and would assist the farmers to get back their hard-earned eouities.