FARM MORTGAGE RELIEF

Dominion, Volume 28, Issue 107, 30 January 1935, Page 8

FARM MORTGAGE RELIEF

Work of Commissions 14,000 APPLICATIONS FOR ADJUSTMENT Wellington Heads the List Many farmers in New Zealand already have disclosed their need of some relief in respect of mortgage finance and other obligations. This is emphasised by the fact that, since the establishment of Adjustment Commissions throughout the Dominion under the Mortgagors- and Tenants Relief Act, 1933, approximately 14,006 applications for measures of relief have been received. The latest returns made by the fourteen commissions to tlie Minister in charge of their work, the Hon, J. G. Cobbe, Minister of Justice, show that up to tlie beginning of November last, the mortgage moneys invo'ved in tlie number (over 11,000) of applications then dealt with totalled £26,250,000 in even figures. The arrears of interest payments at that time aggregated £l,652,800. Over 1600 lease-holders had applied for relief in respect of rent, the total sum involved being rather more than £500,000. Though comprehensive details are not yet available, an extensive measure of relief has been secured, many mortgagees having agreed voluntarily to make adjustments in addition to the statutory reduction of 20 percent. of interest charges. Tbe pooling arrangements under the special provisions of the Mortgagors and Tenants Relief Act, dealing with stock mortgages and aiming at co-operation between the various mortgagees or lessors, are reported by the commissions to have worked satisfactorily. Several commissioners have emphasised the value of the special legislation which “has more than justified itself during a difficult period, and has been of great benefit to many farmers.” . i Nelson’s Good Position. It appears that the Nelson district, in addition to its record for sunshine, takes pride of place in respect of its least need of mortgage finance relief. It has made the fewest applications for an adjustment of farmers’ financial obligations. The Marlborough district, with its high proportion of large holdings or runs, is not far behind its neighbour, Nelson, as regards comparative freedom from mortgage and rental burdens. Otago still can claim an outstanding financial soundness, while Southland is entitled to bo classified as being very prosperous. Over 2000 applications for relief have been received from Canterbury. It probably will be a surprise to many people that the Wellington district, which comprises the Wairarspn, leads the Dominion with over 3000 applications up to the end of last October. Auckland is a close rival, and also has topped the 3000 mark, but still is below the Wellington total. Three Adjustment Commissions are at work in the Auckland province, and the applications for mortgage relief hove shown that hundreds of smalttfarmers, particularly in the far north of Auckland city, are in dire need of financial assistance. It may be recalled that the Minister of Finance, Rt. Hon. J. Gi Coates, in his Budget speech last year, emphasised that the existing measure of relief for mortgagors and.tenants was only a temporary expedient, and that something more would have to be done in respect of mortgage finance and the rehabilitation of farmers. The present Act expires on December 31 this rear. By that time, no doubt, the projected scheme for helping financially distressed farmers will be in operation.