FINANCING SETTLERS.

Auckland Star, Volume LXI, Issue 97, 26 April 1930, Page 12

FINANCING SETTLERS.

DEVELOPING IDLE LANDS.

NEW SCHEME EXPLAINED.

AN IMPORTANT EXTENSION.

(By Telegraph.—Own Correspondent.) WELLINGTON, this day. A statement made by the Hon. E. A. Ransom this week regarding a new feature of financing improvements on undeveloped Crown lands has aroused a good deal of Interest, and the- Minister informs the "Star" correspondent that one question raised is the possibility of competition against the existing facilities of the State Advances Department. "Tlie rwo methods explained," said the Minister, "do not conflict. The scheme does not contemplate making advances ■in respect to improvements already carried out, but it is intended to encour-

age the bringing into productivity of undeveloped land. Under the amending legislation of last session, introduced by the Minister of Lands, any Crown tenant who has just selected entirely unimproved Crown or settlement land, or any Crown tenant who has still such an area of undeveloped land in his holding as can, in the opinion of the Land Development Board, be classed as 'undeveloped land,' may be granted an advance out of the Land for Settlements Fund. These advances are to be for improvements to be effected, such as fencing, breaking in land, buildings, drainage, etc., and shall be 90 per cent of the estimated cost, but not exceeding £1250 in all, and will be payable by progress payments as improvements are carried out.

"Obviously," added the Minister, "the State Advances Office could not make advances in such cases, as it requires a security to be in existence for its loan, but the Lands Development Board does j not require to have permanent improvements' effected before it will authorise an advance, as it only lends for the purpose of encouraging entirely new making of impovements. Though the system is apparently not as well known as it deserves, seeing that it strikes an entirely new departure in the encouragement of land utilisation, the board has already granted some advances on the basis I have mentioned, and it has taken the line that the amounts are secured by a mortgage, which will have absolute priority over all other* mortgages. It may, however, stand behind a State Advances mortgage or a mortgage to the Crown. When dealing with an application in respect to partially developed sections, the board would consider whether any such application did not more fittingly come under the province of the State Advances Office, so that the new scheme, in its operation, does not conflict with that, valuable organisation, but extends the scope of the Government's capacity to help settlers in a very effective way."