Land Tax:

That land tax be abolished on utilised farm lands, but in any even the tax to be computed on productive capacity of the land.

Transport Charges:

That drastic reduction be made in transport charges from ship to siding, and cheaper freights be arranged throughout the country.

Tariff:

That farmers be freed from tariff burdens that tend to raise the cost of production.

Comments.

The foregoing proposals have been duly considered by your Commissioners in making their recommendations.

___________________________

PLAN-COUNCIL OF INDUSTRIES.

Synopsis.

Control:

The essence of the plan is that the settle requiring relief shall approach in turn—

(a) principal unsecured creditor,

(b) junior mortgagee (if any),

(c) senior mortgagee,

who, after arranging with other creditors interested, take out a crop lien with the consent of mortgagees for the general benefit, but without the usual supporting mortgage. In addition a second lien is to be obtained to secure the past debts.

Financing Future Production:

The creditors will provide whatever assistance is considered necessary amongst themselves. Every such application will be dealt with on its merits.

Security of Tenure:

In addition to a crop lien to secure current credit, a second lien is to be taken out for past debts. This, it is considered by the Council, will give ample security to the settler against any act of a hostile creditor.

Bonus payable from Flour acquisition:

The Government to raise funds under a Flour Acquisition Act equal to £5 10s. per ton on local consumption and make same available to all wheat growers of the State in proportion to wheat marketed by each.

Distribution:

That the proportion of bonus receivable by a settler under the plan shall be assigned to the administrating creditor and added to the gross proceeds of his crop. The total proceeds to be distributed in the following order:—

Firstly: 5 per cent. on the gross proceeds to settler for his own application.

Secondly: Current supplies and services, including employers' liability insurance premium (pro rate if proceeds insufficient).

Thirdly: One year's interest on mortgage, on year's land rents, rates, taxes, dwelling insurance premium and one year's machinery hire not exceeding one-fifth of purchase price (pro rata if proceeds insufficient).

Fourthly: 10 per cent. of balance remaining to settler as incentive to effort.

Fifthly: Past debts, with the proviso that secured creditors shall not receive more than 40 per cent. of the surplus available to the fifth preferences.

Comment.

This plan contains valuable suggestions. The essence of the plan, however, was unanimity among the creditors, further creditors agreeing to provide the necessary finance and/or credit to enable the plan to become operative.

Before proceeding with any further consideration, your Commissioners desired to be assured that the above conditions, which they consider essential, would be performed.

Your Commissioners communicated with the companies and firms supplying essential commodities to the farmers. These inquiries disclosed that neither unanimity nor finance could be relief on.

Your Commissioners cannot recommend the plan in its entirety, but in the plan they recommend they have incorporated some of its principles.

PLAN—MR. W. A. WHITE.

Synopsis.

Control of Plan:

Committee of three to examine applications of settlers desirous of coming under the plan, and to accept those considered suitable.

Upon acceptance, settlers will be brought under the Farmers' Debts Act and be controlled by the Director and his Receivers. The latter to have the facility for obtaining periodical reports from the Agricultural Bank Inspectors, as may be required for the information of creditors.

The Receivers through the Director to call annual meetings of creditors for the purpose of reviews and arrangement of conditions for ensuing year's operations.

It is made obligatory on the part of Receivers to carry out the directions of creditors in so far as they are not inconsistent with the general scheme.

Settlers' Liabilities:

1. Conditioning of liabilities to a tentative valuation of assets as at 1st March, 1932.

The excess debt this arrived at being placed in suspense and to be non-interest bearing.

2. Condition to remain in force until expiration of five years or less, at discretion of a committee, according to whether it is considered the time has arrived for a permanent adjustment to ruling conditions.

Future Finance:

The scheme provides for the establishment of a fund to finance essential cash requirements for future operations. It is expected that merchants will subscribe to the fund.

At the termination of the plan, subscribers will receive refunds proportionate to their contributions.

Receivers will be required to finance harvesting supplies on credit in order to relieve the fund as far as possible. Any deficiency on the year's operations to be drawn from the fund and debited to a Receiver's Deficiency Account.

It is estimated that a fund of £350,000 would finance the cropping operations of 1,000 settlers. This would be recouped out of harvest proceeds after meeting harvesting expenses.

Annual surplus on a settler's operations are to be applied, firstly in reduction of any "Receiver's Deficiency," and secondly in reduction of those debts placed in suspense, as follows:—

First Year:

1. Previous year's mortgage interest, Lands Department rents, rates and taxes pro rata.

2. One fourth of balance outstanding on machinery pro rata.

3. One fourth of other recognised debts (exclusibe of accrued interest) pro rata.

Second and Subsequent Years:

1. "Receiver's Deficiency Account" of the previous year or years.

2. One year's mortgage interest, land rents, rates and taxes to the credit of any existing arrears.

3. One third, one half, and whole respectively of balance machinery hire outstanding.

4. One third, one half, and whole respectively, of other debts to the debit of "bad and doubtful debts." pro rata.

Transfers:

Provision is also made that transfers of properties shall receive the prior consent of the Committee.

Comment.

Recommendation.

The above plan contains valuable suggestions, and its principles have been incorporated in the plan recommended by your Commission, for the following reasons:—

1. It is not considered the present is a suitable time in which to value debts, as values are unstable.