MORTGAGE ADJUSTMENTS.

Waikato Times, Volume 120, Issue 19990, 14 September 1936, Page 6

MORTGAGE ADJUSTMENTS.

The Government has made no effort to rush the Mortgagors and LeSsccs Rehabilitation Bill through the House, with the result that important matters of detail are being discussed. The member for Egmont, Mr C. A. Wilkinson, said that apparently the farmer who applied for the adjustment of his liabilities would have mortgages representing 100 per cent of the value of the property, and he could not see how, in such circumstances, the producer could make any repayment at the end of five years. In other words, the farmer might have no equity in the property at all, under the proposed legislation, whereas he was assured of some equity under the Final Adjustment Act of the previous Government. Perhaps the Prime Minister will provide some official explanation, because he stated last March that the Government intended to restore equities. “ The Government,” Mr Savage said, “intended to set itself to the task of restoring these equities by promoting legislation authorising the readjustment of mortgages on the basis of the average prices received for primary produce during the past eight or ten years and on the average of incomes during that period." It now devolves on the Prime Minister to show how the Bill discharges that promise. The member for Egmont, who is well versed in these matters, evidently cannot discern any plan likely to have that effect, and the only method yet suggested is that, by excluding the higher prices ruling for produce—and reflected in firmer prices for land during the past twelve months—from the basis of adjustment the increase in land values may give the farmer a small equity in his place. A Press Association message, sent from Wellington on March 18, said that “the restoration of equities in land and homes is an important part of the Government’s future programme," and then followed Mr Savage’s promise already quoted. The time has now come for him to explain how the Bill makes good that intention. Just at present it is by no means clear.