POWER TO CLOSE.

Auckland Star, Volume LXVI, Issue 55, 6 March 1935, Page 10

POWER TO CLOSE.

LOAN DEPARTMENTS. MERGER IN CORPORATION. MR. COATES QUESTIONED. fßy Telegraph.—Parliamentary Ilenortor.) WELLINGTON, this day. Under the Mortgage Corporation of New Zealand Bill the Government has power to close down the State Advances Department and the other Government lending institutions, but the Minister, Mr. Coates, intimated, in the Hoiwe last night that such action by the Government was only a possibility. It was more likely that those Departments would be retained to administer mortgagee which had special circumstance's attaching to them. He made it clear, however, that the State Advances Office would not consider any more, applications for loans. Mr. \V. Nash (Labour, Hutt): If the Government Ls satisfied that the State Advances Department is not wanted, it can close it down! Mr. Coates: Yes. Mr. Nasli pointed out that under the bill the Government had the power to dose down the State Advances Department, the Sural Advances Department and the Discharged Soldiers" Settlement Department without reference to Parliament. Mr. Coates replied that that was possible, but the Acts setting up tho.se Departments still remained, and if any difficulties arose over mortgages the Government had power by Order-in-Council to deal with them. No More Loans. Mr. A. S. Klchards (Labour, Roskill) said that the Minister's reply meant that the State Advances Department would not function if the clause were passed. Mr. Coates: The question asked was whether it was proposed to hand over all securities to the corporation. My answer was '"Yes."

•Mr. Langetone: Will the State Advances consider any more applications for loans?

Mr. Coatee replied that the Department would not be able to consider any more applications for loans. Mr. W. A. Veitch (Intl., Wanganui) said that it hud boon stilted definitely that the staffs of the Departments concerned were to be merged with the Departments in the corporation, but now the Minister said that it was not mandatory. He thought the Minister might*take the House into his confidence, us members had no idea as to what extent it ""was proposed to merge the Departments. "Jf the fight up to the present has resulted in the Minister modifying his attitude, then I for one am jrlad to have taken part in it," said Mr. Veitoh. Mr. 1). G. Sullivan (Labour, Avon) : Tho Minister has stated that there will be no advances from the State Advanccri Department; will he say whether the corporation will make advances to workers V Mr. Parry: That's in another bill. Limit of 66 23 Per Cent. Mr. Sullivan: If the answer is "yes," will the advance be limited to (10 per cent? Mr. Coates: That will be the position; it will be considered by the corporation. Mr. Sullivan: But restricted? Mr. Coates: That is not likely to meet the cases we have in mind—the necessity for improved housing. Mr. Nash said that the advances had been 93 per cent, then 73 per cent, and now would it mean that advantages enjoyed during 40 years would disappear? '"Dues it mean that advances by the corporation will be (Hi 2-3 per cent?" Mr. Coates: That is so.