STATE ADVANCES DEPARTMENT

Hokitika Guardian, 20 March 1931, Page 8

STATE ADVANCES DEPARTMENT

UNFAIRNESS ALLEGED. WELLINGTON, March 17. “Unfortunately it is a habit in New Zealand (to buy land and to give l pledges for its payment,” remarked Mr C. A. Wilkinson (Egmont) by way of preliminary to comment in the House regarding the treatment of farmers, whose lands are mortgaged. It had bgen suggested, he continued, that a tribunal should lie set up to deal between the farmer and the mortgagee, and lie hoped that the Prime Minister would agree that the State Advances Department should be included in this arrangement. The Government had refused, which was a mistake, for the greatest lending institution in the country should set the example when it asked that concessions be made by private lenders. The State was not, he contended, dealing generously with some of its mortgagors, for he had particulars of a case where a Taranaki farmer owed £O3 on one section and £59 on another and lie had boon notified by the State Advances Department that unless these sums were paid within one month he would be sold up. The Prime Minister asked if the member would give him the name, and Mr Wilkinson undertook to do so. He went on to say that this was a farmer in the backblocks, running sheep, and everyone knew how difficult the times were for such men. He had paid his rent, hut had nothing to spare for interest, and liis other credito-s wcr> helping him. AYitli the member for Patea he had interviewed the bead of the Department over the matter, and the threatened sale was postponed for two months. No good could ho done by turning such a man off his land, for ho was a good farmer, though psosihly not a good correspondent. In such cases, the arrears of interest could be capitalise] until times improved.