RELIEF FOR FARMERS

Hokitika Guardian, 15 December 1932, Page 5

RELIEF FOR FARMERS

A NEW SCHEME M.P.’S PROPOSALS ANNOUNCED. (Per Press Association— Copyright.)

NEW PLYMOUTH, Dec. 14

Th© scheme, of Mr C. A. Wilkinson, M.P., to aid fanners in their difficulty was made public to-night. In brief the sclteme is as follows:

That all of the farm lands in New Zealand should be entirely freed from their mortgage liability, both as to capital and interest. »

That henceforth no mortgage liability should be allowed; on any farm land. A:' , 1

That, in view, of the freeing of land from all mortgage debt, all >of ' the farm land over and . above what is considered' a reasonable area should be resumed by the State, without payment or further. settlement purposes. That the land thus resumed by the brown should be .acquired on the basis of the reduction by the abolishing of the mortgage debt on the land concerned. ,

These drastic steps, 'said 1 Mr Wilkinson, would place the primary producers in the position to' compete with any country in the world, , and would do more to rehabilitate tlw» country than any other . proposal yet suggested,

“The main feature of my scheme,” he said, “is that T propose to bring money values into line with farm production values. After arriving at the tru© value of the mortgages, the interest payments should be made on a three per cent, basis; and, ,to- provide for fluctuations, up or down, on an index system, according to export values, I propose that all of the existing farm mortgages should te reduced in value commensurate with the pre-sent-day export prices.’’ • “All of the farm mortgage contracts made before September 30,• 1929, and still outsanding, should have their value based on the 'average of the export prices from September 30, 1925, to September 30, 1929, . and'be reduced proportionately, according to the export values existing between October 1, 1930, and March 31, 1933. “All of the outstanding, mortgages entered into between October 1, 1929, and September 30, 1930, .should be calculated in similar manner;. and, in subsequent separate years, I propose that the State should take over the whole liability under the mortgages (as adjusted) by issuing State bonds •payable to bearer, pud saleable on the stock'exchanges. I estimate that this liability , would not, under any circumstances exceed £200,000,000. Possibly it would be : considerably less, which would entail a burden of interest payments not exceeding £6,000,000 per annum. ‘‘ln order to provide the funds for the payment of such annual amount, I propose to impose an income tax upon tli© nett profit of all of the farmers, or a sales tax on all of the produce or stock solid from the farms, or an. income tax oil the gross receipts from the farms; and, leave the balance, to be made up ‘by general taxation. “I am of the opinion that nothing short of revolutionary measures will do what is required,” said -Mr Wilkinson. “Iff is agreed-that the'greatest burden upon the .primary producers is interest, rent and taxation.” A representative meeting here tonight set up a Committee to investigate the scheme.