This is a Bill to give me powers to deal with the arrears outstanding on certain fishery loans made by the late Congested Districts Board, the Department of Agriculture and the Department of Fisheries. These outstanding obligations have long been weighing on the fishing industry and have resulted in a certain amount of despondency where, for the development of the industry, we are all desirous of seeing a revival of enterprise and confidence. It is always a grave matter to propose that debts due to the public should be remitted or substantially reduced. It would be greatly damaging to the credit of the country if a belief should grow in the public mind that obligations due to the State are not as equally binding as obligations between individuals. In regarding this matter we should be guided by similar considerations and standards as if these debts were debts due from one individual to another. I think that in such circumstances the first question which the creditor would ask himself is this: What ought I to do as a pure matter of business? The second question which he would probably ask himself is: Are there any other circumstances which I ought to take into account bearing in mind that I may desire to do business with my debtor again in the future? These are not, perhaps, the highest grounds on which one could examine a question of this sort but they generally lead us to pretty sound conclusions.
There are 449 cases of loans, some for boats, some for engines, and some for nets, which originally stood at a figure of £104,101 9s. 0d., and on which a total sum of £67,850 10s. 5d. remained due and outstanding on 1st June last. In these cases the borrowers are dead, have left the country, or have long since ceased to be fishermen, the boats for which the loans were made no longer exist, the engines also are gone or worn out, and the nets are worn out. The borrowers, where they are still within reach, are not persons against whom one could either with profit or justice take proceedings to recover any part of the sums due. There is no asset which one could recover.
There are, however, the sureties for some of these loans. They entered into bonds under which they could be proceeded against for the sums due. Those bonds are quite good and enforceable. The sureties are not, in the majority of such cases, persons of much substance, but I might succeed in recovering something from them. Would it be a proper course to enforce these bonds to the extent to which they are enforceable? I have come to the conclusion after careful thought that it would not. I do not seek to ignore the liabilities which these sureties undertook. They sponsored the integrity and industry of the borrowers, and they indemnified the State against any failure by the borrowers to meet their obligations. I think, however, that we must look to what happened subsequently. Most of these loans were made between 1917 and 1919 when prices of boats and gear were at their highest point. Their earning power was equally high. Then following 1919, when British trawlers were brought again into commission, the earning power of these boats fell away to comparatively negligible proportions. Later transport in this country was seriously interfered with, and conditions which were already bad were rendered worse. Furthermore, the herring has for some unknown reason forsaken parts of our coast, and both the markets for herring and mackerel have been depressed for reasons beyond our control. These are the causes which most largely contributed to create the position which we are now facing, and the question which I had to ask myself was whether it would be proper to place upon the shoulders of these sureties the burden resulting from these causes. The conclusion I came to was that it would not be just nor in the public interest to do so. I therefore propose to write off the whole of that £67,850 10s. 5d.
There are 23 cases of loans which originally stood at £19,448 19s. 9d., of which £15,799 14s. 8d. was outstanding and due at 1st June last. In these cases there are 21 boats which are either laid up and not in use or which, if put to some use, are not in the hands of men who, in my opinion, are ever likely to make proper use of them. I propose to remit the whole outstanding amounts in these cases on condition that the boats and gear are handed over to me, when I shall transfer them to the Sea Fisheries Association.