STATE LENDING.

Auckland Star, Volume LIII, Issue 194, 17 August 1922, Page 8

STATE LENDING.

CONCENTRATION OF BUSINESS. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, Wednesday. An amendment to the State Advances Bill was introduced by tlie Governor's Message. The Prime Minister explained that its object was to provide for certain transfers to the State Advances Department. The Government had been advancing considerable sums to the fruit industry for the provision of cold storage, also under the Repatriation Act, in connection with which there would be some. loss. A certain amount, too, had been lent to the fishing- industry, and quite a large sum under the Housing Act. Jt was proposed to place these and future loans under the Ad- ! vances Department. , Mr. Wilford asked where the money had come from in the past. Mr. Massey replied that it had been paid out of loan money. The amendments v.-ere not proposed because there jwas any fault to find, but because it I was better to have the accounts under ■•one head than spread about. The officers of the Advances Department were experts in this particular business, and better results might be obtained with the matter placed in their hands. Another technical alteration was to establish a reserve fund of £25,000 in connection with the se-ttlers' branch of the Advances offices. It was further proposed to establish a reserve fund for the workers' branch of £25.000 out of the net profits of the branch. Both these funds would from time to time be united and reinvested in advances to workers. A similar fund was to be established for the local authorities' branch. Whenever funds exceed £25,000 or such larger sum as the. GovernorGeneral by Order-in-Council may direct, the excess shall be paid into the Advances office. The final clause provides for net profits from the several branches being paid into the sinking fund account after the deduction of such amounts as may be required for paving into the reserve fund and for repayments to the Consolidated fund as required by the principal Act.