PARLIAMENT

Evening Star, Issue 22446, 17 September 1936, Page 2

PARLIAMENT

THE MORTGAGE BILL POINTS RAISED IN COMMITTEE fPjjR United Press Association.} WELLINGTON, September 16. The House met at 2.30 p.m. After formal business the Mori ragors’ and Lessees’ Rehabilitation Bi was considered in committee. Mr Hamilton urged that the existinf members of commissions should, when possible, be reappointed so that ad vantage could be taken of the experience they had gained since their ap pointment. Dealing with farm pro perties was a job that needed expen enee, and he thought tho Minister should consider appointing formei members before appointing new ones. Air Bodkin said it would be an extreme disaster if bias were shown in the appointment of the members of the commissions. These commissions would represent either the strength or the weakness of tho legislation. The basic value of a property should be what it could produce under efficient management. It was necessary to make a certain amount of adjustment, but he claimed it _ was not as urgent as most people believed. The mere fact that, notwithstanding there were £125,000,000 worth of rural securities, the total value of mortgages regarding which adjustment was asked was only £3,700,000, did, definitely suggest that the matter was not as urgent as most people were given to believe. Air Poison said the provision to exempt certain mortgages should not bo left to the Governor-Genernl-in-Council to decide, but it should be a matter for the court. In fixing the productive value of land no provision was made for profit. He thought an amount representing sinking fund should be provided, so that the farmer could look forward to the day when ho would be able to pay off his mortgage. He asked if a flat mortgage, when refinanced at the end of five years, became a second mortgage. If that were done it might place the farmer in a very difficult position. Air Nash said the principle of priority mortgages was in operation in Britain, where it had served a useful purpose to many occupiers of land. It was definitely for the purpose of ensuring tho maximum production of the land. There had to be some provision that those who supplied l the farmers with seed and manures received their money, otherwise the farmer would not get his seed and manure. Referring to sales of properties, Mr Nash said power would be taken to ensure that the farmer who had been given some benefits by adjustment would not be able to sell the property within the period of the adjustment. He assured Air Hamilton that people who had experience would be appointed to the commissions. Referring to another argument, Air Nash said that under another Bill to be passed, there would be higher taxation to be paid by companies. At present the load of taxation fell on the ordinary shareholder, and steps would be taken to brino; in the interest paid to debenture holders and preference shareholders. If preference sharehold ers felt they were not getting justice, they could make an application to the court. He upheld the provision that large estates could be subdivided, or a portion sold. If a commission thought it advisable this should be done. Mr Bodkin contended that the whole of the adjustable debt should not be written off, but that some hope for the future should be held out for the mortgagee as well as for the mortgagor. After all, if a property were mortgaged to the extent of 100 per cent., the real owner was the mortgagee, not_ the mortgagor, and he should receive some consideration. Air Coates said that although it was not expressed, it evidently was intended to give tho farmer an equity in his property, but if the farmer missed one payment as arranged for by the court, he was gone. He believed more farmers would go put under that part of the Bill than under the five-year budgetary system. Air Nash stated that there were a number of amendments to be introduced and he suggested that the Bill should be reprinted with the amendments inserted. The Short Title of the Bill was passed, .also two machinery clauses. Progress was then reported, and the House rose at 9.30 p.m.