A TRIANGULAR PLAN

Otago Daily Times, Issue 22987, 16 September 1936, Page 6

A TRIANGULAR PLAN

GOVERNMENT AND THE FARMER CRITICISM BY MR COATES LOSS OF EQUITY IN LAND (From Our Parliamentary Reporter) WELLINGTON, Sept. 15. A vigorous attack on what ha termed "the Government's triangular plan for farming " was delivered by Mr J. G. Coates (Opposition, Kaipara) during the secondreading debate on the Mortgagors and Lessees Rehabilitation Bill in the House of Representatives tonight. The one result of the Government's legislation, Mr Coates said, would be the loss by the farmer of any equity in his land, so that he would be reduced to the position of a wage worker for the State. Mr Coates said he v had listened to the two Government speakers, who had put up the worst case he had heard for a long time. It was impossible to reconcile the interests of the farmer mortgagors and the mortgagees. Mr J. Thorn (Govt., Thames): You had a' shot at that yourself. " I am bound to say that this Bill is no improvement on past legislation," said Mr Coates. "In the past there was provision for a 20 per cent, equity. That is to be taken away. I would like any member of the Government to show me where a penny piece of equity exists in this Bill. The Prime Minister promised to restore equities. Either the Minister of Finance has let him down badly or else he has gone back on the promises which he made to the farming community. " It is impossible to approach this mortgage Bill as an isolated piece of legislation," Mr Coates continued. " It is part of a triangular plan for the farmers. First, we have the guaranteed price, which is lower than the* ruling market rate. The second leg of the triangle was a statutory minimum wage for farm labourers,, which was fixed at a rate below the wage fixed for general labourers; and now we,have a readjustment of mortgages. The mortgagor is to be allowed a reasonable standard of comfort, but at the same time he will be left mortgaged 100 per cent." Mr Thorn: He is mortgaged 150 per cent, at present. Mr Coates said it was true that the legislation in many respects was based on the Acts passed by the last Government.

Mr J. Christie (Govt., Waipawa) Why complain about it?

Mr Coates: The honourable gentleman will get all the complaints he wants when he goes back to his own constituency. Mortgages could not be adjusted on a basis of the guaranteed price, Mr Coates continued. The price itself was to vary from year to year. The Minister had referred to community values in land. If those were to be taken away under the Bill the farmers' claims would not go beyond his reasonable standard of comfort; he would be put on the same basis of wages as his own farm labourers. The intentions of the Government were clear. It aimed at securing all the equity in land for the State. If the farmer lost his equity and all reasonable chance of equity he would be reduced to the standard of a peasant.

When the first mortgage legislation was introduced a few years ago, Mr Coates added, there was a real necessity to improve the hopeless position of the farmer. There were many who were in danger of losing the results not only of their own work but also of the work of their forbears. Something had to be done and the last Government at the risk of unpopularity set out to help the mortgagor on sound principles. The Labour Party had promised more, but it was very questionable whether the present Bill gave the mortgagor what he had been led to expect.