DOMINION FARMERS

Rotorua Morning Post, Volume 1, Issue 38, 7 October 1931, Page 4

DOMINION FARMERS

SPECIAL ASSISTANCE urgent necessity to see that Production is maintained GOVERNMENT'S PROPOSALS WELLINGTON, Tuesday. Speaking in the House of Representatives to-day on the supplementary financial statement, the Minister of Finance, the Hon. W. Downie Stewart, dealt with the position of the Dominion's farmers. Mr. Stewart, after surveying the ; general situation in respect to inter- j est rates, said that while it was not considered advisable to make an arbitrary reduction in interest charges it was considered that the position could b'e best met by some extension of the Government's emergency powers. j "The Government is of the opinion that the provisions of the Mortgagors, Relief Act should be enlarged," he said. "Justice could be more fully done by this means than by a fixed i reduction in interest, which would work out inequitably, sometimes j granting insuffieient relief and some- ; times too much. It is therefore proposed to enlarge the powers of the Court so that it may not merely postpone payment of interest for 12 months, but may also make such remission, reduction or postponement of interest on existing mortgages as seems just and equitable. Moreover, where the mortgagee is the vendor for unpaid purchase money, the Court may make reduction or postponement of principal or interest. to a mortgagor." The Court will also be empowered to authorise a fair distribution between the mortgagor, the mortgagee, and the holder of the chattel securities, of the proceeds of the farm, to enable the best to be dohe for all parties and to ensure that production will be carried on, Mr. Stewart continued. It also appeared expedient, in view of the rapidly changing circumstances, that the legislation should enable the powers of the Court to be extended by Order-in-Council as circumstances may render necessary. Reduction in Rates "Apart from interest, the principal items in the farmers fixed charges are rates, and taxes," he proceeded. "Rates in partieular are'a heavy burden under the present condition. They have been heavily increased by the cost of road improvement and maintenance through the use of the roads by motor traffic. Quite_recently the Main Highways Board increased the subsidy to local bodies for maintenance of highways from a basis of £2 for £1 to £3 for £1 as from April 1 last, thereby assuming a greater proportion of the burden of the highways. An examination of the finances of the Highways Revenue Fund showed that after providing for all the normal requirements for maintenance, interest, sinking fund, and the subsidies on rates 'to local authorities, the probable revenue receipts for the year from the existing taxes and license fees, etc., together with the balance carried forward on April 1 last will provide a balance at the end of the year of not less than £250,000. This balance, or the greater part of it, the Highways Board would normally have transferred to highways construction, but under present circumstances it was considered that it would be better to somewhat curtail construction work for this year and apply the £250,000 by way of a special subsidy to rural local authorities in relief of the existing burden of rates. "These measures will give some relief from the burden of rates," the Minister concluded. "As a means of providing more permanent and farreaching relief the Government proposes to proceed with the inquiry by Royal Commission into the possibilites of national economy through the amalgamation of local authorities and a general overhaul and reorganisation of the whole system of local Government."