PARLIAMENT

Waikato Times, Volume 119, Issue 18898, 29 May 1936, Page 8

PARLIAMENT

MORTGAGE CORPORATION.‘ l l NEED Fon nsnucmo costs. TO-DAY'S PROCEEDINGS. (By Telegraph—Press Association.) WELLINGTON. Friday. The second reading debate on the State Advances Corporation Bill was resumed in the House to-day by the Right Hon, ti. W. Forbes (Leader of the Oppositionj, who referred to the establishment of the Mortgage Corporation. He said after all it was not the legislation that mattered but the spirit in which it was administered, and he considered the Mortgage Corporation had meant a forward step and that more effective work could have been achieved by it than under the State Advances Department. The Prime Minister had set out his ideals. and not much fault could be found with them, but it was the duty 'of the Opposition to point out the difficulties that would arise in trying to put them into operation. He mentioned the difficulties or speculation. lie said the farmer would be penalised by the provision that no goodwill would he allowed. He said prices must rise. despite the assurance given by the Prime Minister. Attempts to stop prices rising had been made in the past, but had failed. .. -... Albsrtn Experiment. , .\lr Savage had said the Government intended to reform the monetary system, and he pointed out the difficulties that had been encountered in Alberta, when that was tried. He agreed that the system might be im—proved, but if they could scrap the present one and establish a new one then he would say the age at miracles was not past. I! it were not for the risk that would follow the attempt. it would be most interesting. Mr Forbes suggested that a research department should be set up to go into the question of‘ ihousing iconstruction in an endeavour to get costs down. He urged the Government to be very careful in embarking on the principle of taking shares in industries, but thought if it were done after proper investigation it might be an economic proposition. He , hoped the new corporation would be a success as he wanted to see present dimculties overcome. Mr C. M. Williams (Labour—Kalapoi) ---said the machine they were building in that Bill would bring great blessings to the people. The Leader of the Opposition had been unable to find any flaws in the measure and ,had contented himself with criticising the spirit- behili‘d it. The housing of the people was a national need, and it was only right the peoDle should pay something towards a national housing scheme. He would not suggest that the advance should be given at a very low rate. but said the interest rate would be varied ac. cording to public utility. At present .interest rates varied according to the ‘vaiue of the security. That was a new principle. The Bill gave the Government power to direct capital where it was most necessary and where it would give greatest benefit to the public. A Retrograde Movement. Sir Alfred Ransom said the Bill was a re—enaciment of past legislation. and “'BS a retrograde movement. It would not operate in the interests of the COUNTY. and placed a business de—{iarltment directly under political con—ro . Sir Alfred thought it was a wise provision that the Government should guarantee the bonds, but he considered the Bill was of a less generous char—acter than the Mortgage Corporation Act. It was conservative rather than liberal. It was regrettable that any weaknesses that might have been ap. parent under the last Act were not likely to be removed 'by the present tßill, because it was more conservaive. - 'He thought the provisions of the Bill were based on sound finance and there was no great variation from the conduct of the Mortgage Corporation. He took it that. when the Prime Minister said the Government was going to keep prices from rising he referred to interest. He said it would have been better had the Prime Minister said interest instead of prices, as interest was more applicable to the Bill. Land Nationallaation. Mr J. G. Barclay (.\larsden) said the Bill before the House would assist farmers to obtain money at reasonable cost and it would assist workers in the towns to obtain money to build homes. .\ir Poison was perambulating the country, saying the Government was going to nationalise land but the Bill showed that the Government was not going to nationalise land. lie did not agree with members of the Opposition that Posts would rise. ‘He lllought the Mortgage Izorporalion did more than anything else to put the last Government. out of office, .\lr Barclay said the hills ‘hrought ‘ before the House had clone. away with itho smug complacency met with a ‘ year ago and he said during the com—- ‘ in; recess Government members would ‘go out into the country to discuss lihat and other measures that had ‘ been passed with the electors. The Hon. A. Hamilton (Opposition -——\\‘allace): So will we. No Limit to Possibilities. Mr Barclay said the Mortgage Cor—poration had been lending on a conservative basis. He said he knew of cases. where application was made for .13 l—3 per cent of the value of the land but the applicant could not get it. lie thought the Bill would he arrepirri by the thrilling population. -who would look in it in the future. and with a sympathetic administration there was no limit to its possibilities. Mr \V. J. Broadtnot (Opposition—\\'aitnmn) claimed the Mortgage Corporation had been responsible for lowering interest. in n level it hart not burn for vrl'y many years. The main [framework of the .\lnrlgugr llorporation hfltl lmcn adopted by the Governlmf‘nl and that “as a rmnplimrnt to H“. past llmrrnmrni. The luurln-un adjournment was then taken. ’ Transport Bill. 'l‘llr lli‘llflli" nil illf‘ 'l‘rrmsymri Lil-wnsin: .\mr‘unlun‘ut Hill was rr» summl. The Hon. H, it “His yminimi out tho .anavr t‘rmu mnlur l‘_\l‘lPs as far as Jrridpmc “nrn rnnrr‘rnerl. Push [uncles were also a 'lrllltlf‘i' it" ”Hum“: no motor drixel"s llvens" chnuld he wanted to amour under 17 lwars of age. The debate is proceeding.