CITY AND RURAL MORTGAGES

Press, Volume LXXI, Issue 21412, 2 March 1935, Page 14

CITY AND RURAL MORTGAGES

—s. BORROWING OF MONEY FROM CORPORATION DISCISSION IN THE HOUSE [From Our Parliamentary Reporter.] WELLINGTON, March 1. The opinion that urban as well as rural mortgagors should be permitted to borrow money in excess of twothirds of the value of their security was expressed by the leader of the Opposition (Mr M. J. Savage) when discussing the Mortgage Corporation of New Zealand Bill in the House today. The provision in the bill states that an amount up to four-fifths of the security may be borrowed in certain cases where the security offered is a mortgage of land used exclusively or principally for agricultural, horticultural, or pastoral purposes.

Mr Savage sought the deletion of the limitation. The Minister for Finance (the Rt. Hon. J. G. Coates) expressed a doubt as to whether it was competent for Mr Savage to move the amendment. Mr Savage said the Minister's comment showed clearly what the bill was intended to do. "I have loaded the gun and pulled the trigger," he added. "If the bird flies awav before the gun goes oil. 1 cannot help that. However. I will see that what the Minister says is properly advertised." Tlie Chairman of Committees (Mr J A Nash) said the carrying of the amendment would throw a heavier burden on the State, and he would rule it out on that ground. He was prepared to have the Speaker's ruling taken. , ~ „ Mr Savage: I agree with your ruling. That is alf right. When it was argued that discrimination would weigh against the city man who wished to buy or build a kouse the Minister said lie did not pretend that the bill would cover bau'dng in the cities. "We have other Proposals in hand for that," he added; "but thev are not yet sufficiently advi need to be broughgt down in Ihe form of h-irislation. We have plans for housing and the elimination of slums, and these will bo brought forward m good time." Dealing with ihe position of the city mari who had property valued at r3500 and who was being pressed by his mortgagee. Mr Coates s:vd he could make up his mind whether to take £2300. which the Mortgage Corporation was prepared to offer him, or eke place himself in the hands of the Mori case Adjustment Commission. By tnkinf the former course, however, he would be able to present the mortgagee with cash, and thus the corporation would serve the valuable purpose of bringing these two people to- - other. This was one of its chief otaVeci«. The mortgagee was naturally 'anxious to make a settlement, and if he did not like to take the cash, which could be provided by means ot the corporation, he would have to be prepared to accept the sum fixed by -lie Mortgage Adjustment Commission as Ihe maximum thai Ihe mortgagor could pay. Further pressed to provide reason* whv rural and urban mortgagors should not be given equal opportunities of raisim' leans on their proper',ts. Mr Coaler asked. "Should Ihey be <b"r.\Vmo".' The circurnst: noes are dei'.mlelv ddlcrcnt, and while at the moment I cannot think ouJ: any scheme bv which readjustments could he carried out in urban areas, a scheme has b'Tti formulated to deal with the position in rural districts, and I think the propo-'i's are pretty reasonable. I ('o pot ;;-iv ihat Ihey are by anv means fmrd: but I think they will serve ioMd the next stage is reached." Mr Coates again emphasised the vita' importance of the farming industry m tho economic structure of New Zealand, and said that the whole eommur.iiy rnu'-t benefit from the assistance given the farmer.