STATE ADVANCES.

Auckland Star, Volume LIV, Issue 145, 20 June 1923, Page 8

STATE ADVANCES.

PREMIER'S MEW BILL. INCREASING THE PERCENTAGE. PREI'AfiINC Full MORATORIUM'S KM). (H.v Tcl'.'r-raj.ii I'nrll.niiientar.T Reporter.) WrXLlWrny, Tuesday. The Premier explained tn tho House of Repre-entative-; to-day the proposed amendments t" f 1 " , -Advances In Settlers Act. lie -:iiil thai one. provi-imi related tn tlic maximtiiii amount of loan, which nt present stood at .'J.'.iHiii. after having been £111110 for :i long lime. He was able to increase it to 12.000 during the war period without taking further statutory authority, hut he ivas unable to go further and the proposed bill would raise tile maximum to L'.'I.OOD. For quite a long time the Department had been lending money to pay off old mortgages, and the Department' had been abli< to do a great deal more business lately than it n< possible m ci.ver during the war period. There was a big demand for money, and he was looking forward to ■December. 1024, when it would be necessary to make arrangements in consequence of the ending of the moratorium. ]n this connection lie wae glad to say that as a result of what he heard in financial circles, that matters in connection with the moratorium were going on satisfactorily, and a very largo'number of arrangements had been made. He did not say that there would bi* none left to make when the time came, but what lie was proposing in the way ot raising the maximum to 'J.Vjiiii if the necessary security was forthcoming would meet the position of mortgagors who required money from the jState Department. COXSER\"ATI\"E \\\LUERS. Mr. Parry: These are only iirst mortgages. Mr. Massey: We cannot take second mortgages. The State can only deal in first class securities. Another important provision in the Jbill lie thought he was justified in introducing. At present a settler could only borrow up to three-fifths of the value of his security. Under the Bill there was provision to increase the GO per cent to 75 per cent, which would meet quite a number of settlers. Mr. Wilford: It won't be effective Unless you change the methods of the Valuation Department. ''■ Mr. Massey replied that it was difficult for him to say that the Valuation was too conservative. Mr. Wilford: They cut down their own valuations by twenty-five per cent before they send them to the State Advances. Mr. Massey said he could not agree "with that statement. The Department, lie pointed out, had been acting in the interest of the State. If the. margin Ws raised from sixty to seventy-five per cent lie thought it would meet the difficult}' regarding valuation. Mr. Wilford: I do not think so. . I WORKERS' HOMES. MrJ Massey said that another provision was in regard to workers' homes, ■which for many people was the most important of all. He considered it Important too. At present a loan might be granted a man for a home up to 75 per cent of the value of the building. Hon. J. A. Hamui; Land and building-? Mr. Massey: No. I am speaking of the Advances to Workers Act. I think I ought to know it, because I proposed it in the first instance in this House. Continuing-, Mr. Massey said that a man must. find a section, then the State would advance him 75 per cent on the value of the building. Mr. McKeen (Wellington South): And 75 per cent of the equity lie has in the'land. Mr. Massey said that his proposal was that the section and the building would both count, the proposal being to advance U5 per cent on the sum of the two, a tremendous improvement, added the Premier. Mr. W r ilford: That is the same proposition as Mr. ]•:. G. Theodore, Premier of Queensland, made. Mr. Massey: 1 know nothing about las proposal. I am not an admirer of Mr. Theodore. Mr. D. J. Sullivan: The f ec lin« is probably mutual. ' Mr. Massey pointed out that if a man was of good character he would have no difficulty in getting 95 ~o r t . ent i{ , ° lound the remaining 5 per cent A Labour Member: When win it come into force? Mr. Massey: If you pass it this week, I ■» ill guarantee it will come, into operabetter " Xhe SUUner the Mr. F. Atmore (Nelson) -. What is the limit or income? Mr. Massey: £300, with £25 for each child. Mr. Parry: Only advances to workers? Mr. Massey added that one provision in the law, never brought into operation owing to the difficulty of classification, dealt with first-class agricultural land, where an advance of 0U per cent might be made, but there had been difficulty on the part of valuers, and there was never a single case where CO per cent was granted. The present bill went one better, making it 75 per cent. The Premier said that the Workers' Dwellings Act would be retained for special cases. That Act did not give a satisfactory title, as it was only an agreement to purchase, but his bill proposed the freehold subject to a mortgage to the State: Mr. Wilford asked whether the bill dealt with the Department taking up its own insurance. Mr. Massey replied that lie did not want to unnecessarily enter into competition with existing insurance companies, and although he believed the Department could undertake insurance cheaper he did not think it worth while interfering.