CROWN MORTGAGES.

Waikato Times, Volume 110, Issue 18393, 29 July 1931, Page 8

CROWN MORTGAGES.

INSURANCE POSITION. ALLEGED GOVERNMENT PRESSURE. QUESTION IN THE HOUSE' (Special to Times.) WELLINGTON, Tuesday. On behalf of Mr C. E. Macmillan (Reform—Tauranga), Mr T. D. Burnett (Reform —Temuka). asked I lie. Prime Minisiter in the House of Representatives to-day if lie ivas aware that mortgagors to the Qrown whose properties were insured in law offices had been threatened by the Superintendent of the State Advances Department that unless the policies were gifen to some) other insurance company the mortgagor would not be allowed any rebate for prompt payment of interest except with the sanction and approval of the Government. Replying, ,Mr Forbes said it would have been better if the word “informed” had been used instead of “threatened.” “It is .necessary to explain," he said, “that with a view to ensuring an economical and smoothly working system whereby a continuous insurance cover can be automatical!.' obtained in connection with mortgages to the State Advances Office 'there is an agreement between the Department and almost all fire insurance offices doing business in the Dominion. This agreement has been in existence for very many years, and as .soon as Lloyd’s signify that they are willing and are able to comply with the terms thereof*their policies will be accepted. There is implied in every mortgage to the Department a covenant that the mortgagor will insure in an insurance office approved by the superintendent, and that he will punctually pay all insurance premiums. Should the mortgagor fail to do so and the Department be obliged, in order to safeguard its interests in the security, to pay the premium, when the amount thereof shall be payable to the department by the mortgagor. Should the amount remain unpaid, the superintendent has no option, by reason of the provisions of Section 41 of the State Advances Act, 1913, but to disallow the rebate in respect of any instalment then due. Section 41 provides as follows:—‘“If the mortgagor (not being in arear with any previous instalment or other payment under the mortgage) pays the instalment on or before its due date) or not later than the fourteenth day thereafter, he shall be entitled to a rebate. “There is no other qualification under the Act governing the granting ol the rebate,” concluded Mr Forbes, “nor is any unauthorised qualification being applied.” LIFE INSURANCE. UNEMPLOYED POLICY HOLDERS. SAFEGUARDING ASKED FOR. (By Telegraph.—Press Association.) WELLINGTON, Tuesday. When the report on the Government Life Insurance Office was submitted for consideration in the House of Representatives to-day, Mr YV. E. Parry (Labour —Auckland Central) paid a tribute to the work of the Institution. He said the assistance it had given the policy holders by way of rebates had compelled private companies to give similar rebates. The Leader of the Labour Party, Mr 11. E. Holland, asked what arrangements had been made to safeguard the interests of unemployed policy holders who were unable to keep up the premium payments. He was informed, that some private offices were taking advantage of the position in respect of surrenders and lapses, and he hoped the Government office was not acting similarly. Sir Apirana Ngata, Minister in charge of the department, replied he would consider whether something should not be-done Fo ensure that persons’ savings put into insurance were not lost to them altogether. He said the office itself had difficulties in respect to meeting interest charges. COMMITTEE APPOINTMENTS. RIGHTS OF INDEPENDENTS. (Special to Times.) WELLINGTON, Tuesday. “The Independents should be represented on this committee,” said Mr C. A. Wilkinson (Independent— Egmont) in the House of Representatives to-day, when the special committee was being appointed to investigate highways finance. “Are you a party?” asked Sir Apirana Ngata. “No,” Mr Wilkinson replied, “we are not a party, but we are a group, and wo represent country interests.” Mr P. Fraser (Labour —Wellington Central) : Then you are a party. Mr Wilkinson: We are a group apart from the three main parlies of the House, but avc are not a party like yours, where every member falis into line and votes accoring to the dictates of the leader. We are, however, entitled to the consideration of the Government. Air G. C. Black (Independent— Motueka) moved to add to the committee the name of Mr 11. Al. Rushworth (Country—-Bay of Islands). The Prime Alinister, the Right Hon. G. W. Forbes, said he had no objection lo Air Rushworth’s name being added. The difficulty was to get members with time to spare and to represent everyone. “I should like to he able to satisfy this group,” Air Forbes went on drily, "but it is hydra-beaded, and one'head might be satisfied and another not.” The committee was appointed as follows: —The Hons. W. B. Taverner and E. A. Ransom, .Messrs H. T. Armstrong, W. ,1. Broad foot, C. AI. Campbell, C. H. Clinkard, A. E. Anscll, E. F. ' Healv, C. E. Macmillan, W. L. Martin, and 11. At. Rushworth. BUILDING REGULATIONS. COMMITTEE'S REPORT. WELLINGTON. Tuesday. The report of the committee relating to building regulations was laid mi the table of the House of Representatives to-day. The Prime Minister stated legislation hearing on the subject was being brought, down. '‘■’-•■'ntinued in next column.)

LOCAL BODY LOANS. REDUCTION OF RATES. •5 PER CENT. MAXIMUM. (By Telegraph.—Press Association.) WELLINGTON, Tuesday. The Local Authorities Loans (Rates of- Interest) Bill Avas introduced in the House of Representatives this evening by Governor-Generai's Message. The Prime Minister, the Right lion. O. W. Forbes, said, the bill was designed- to reduce the maximum rate at which locai -bodies might borrow from 5.1 per cent, to 5 per cent. There had in "the past been a provision that in the event of it being impossible to raise money at 51 per cent., the Minister uf Finance should be empoAvered to allow it to be borrowed at a higher rate. This proA'ision had been retained in respect of the 5 per cent, maximum. Air R. lA. -Wright (Reform —Wellington Suburbs) said be believed money Avould be available to local bodies at 5 per cent, so long as the security A\-as sound. He considered the saturation point had been'reached in connection with borrowing by local bodies, and the time hart arrived %vhen restrictions should be imposed. The Prime Alinister assured members he had discussed the bill Avith representatives of local bodies, and not one objection had been raised. The bill Avas put through all stages and passed. MOTOR ACCIDENTS. UNTRACED DRIVERS. INSURANCE AGREEMENT. (Special to Times.) WELLINGTON, Tuesday. ■ The Minister of Transport, the Hon. W. A. Veitch, announced in the House of Representatives to-day that an agreement had been reached Avith the insurance companies, Avho Avould in future pay out in cases in which persons Avere # injured by motor vehicles Avhose drivers could not be traced. RENT RESTRICTION. EXTENSION OF BILL. PASSED BY HOUSE. (By Telegraph.—Pres° Association.) WELLINGTON, Tuesday. Moving the second reading, of the Rent Restriction Extension Bill in the House of Representatives to-day, the Hon. S. G. Smith, Minister of Labour, said it Avas considered that an extension of the provisions of the main Act of last year was made necessary by the extraordinary conditions resulting from the present depression. Opportunity had been taken to include in the bill a special provision dealing Avith dAvellings in the earthquake area. The bill was put through all stages and passed. PRIVATE BILLS READ. WELLINGTON, Tuesday. The following bills Avere introduced in the Douse of Representatives today and read a first time: —Wellington City EmpoAvering (Mr C. H. Chapman), Painters’ and Decorators’ Health Protection (Mr W. J. Jordan), Painters’ and Decorators’ Registration (Mr Jordan). REPRINT OF STATUTES. SECOND READING PASSED. WELLINGTON, Tuesday. Moving the second reading of the Reprint of Statutes Bill in the House of Bcpresentatives th-is evening, Sir Apirana Ngata said it provided that all Courts should give statutory recognition to the reprint of the SI a lutes. The printing will be carried out by the New Zealand Government printing office. An nditorial committee will lie set up. consisting of the Chief Justice. the Attorney-General and the Parliamentary law draftsman. 7’he volumes will be reduced from the present size to that of the British Statutes. ■ The bill was read a second time and referred to the Statutes Revision Committ.o.a,