HELPING THE FARMER

Press, Volume LXXI, Issue 21419, 11 March 1935, Page 10

HELPING THE FARMER

GOVERNMENT'S PLAN OUTLINED POWERS OF EVICTION CURTAILED PROVISION FOR WRITING OFF DEBTS (PRESS ASSOCIATION TELEGRAM.I AUCKLAND, March 10. The efforts being made by the Government to rehabilitate the farmer were outlined by the Minister for Finance (the Rt. Hon. J. G. Coates), when speaking at the Kumeu show. Dealing with the Mortgage Corporation Bill, the Minister said a good deal of criticism had come from people who contended that the bill would not help the farmer, nor reduce his load of debt. "It should be made very clear that the Mortgage Corporation is only part of our proposals," said Mr Coates. "The main purposes of the corporation are to provide finance at lower interest rates, and to place mortgages on a sounder basis—that is, a long term table mortgage. In addition the corporation will lend up to 80 per cent, of the valuation of a property in any case where mortgage adjustments are being made." Final Adjustment Bill "The Rural Mortgagors Final Adjustment Bill, to be introduced on Tuesday, is perhaps the major portion of the legislation," continued the Minister. "This provides: (1) "That no competent farmer will be put off his property merely because the depression has reduced his ability to pay his debts. (2) "No creditor can sue him for debt if his is a case of which the adjustment commission approves. (3) "For a period he shall work with his income so allocated as to give him reasonable living expenses, working expenses, etc., the rest to go to the creditors. (4) "At the end of the period the property is valued, mainly on its earning capacity, to determine what amount of debt it can carry. "(5) The rest of the debt will be written off. "(6) That where it is deemed fair and reasonable, an equity of up to 20 per cent, in the property may be given to the farmer. This does not mean that in -every case a 20 per cent, equity will be allotted. Every case will be taken on its merits." Mr Coates said the whole proposal was designed to put the farmer on a sound footing, where he would no longer be in danger of being sold up. No longer would the farmers be losing heart in the face of an intolerable debt burden.