STATE HOUSING.
"".lay See's" fertile imagination enal.Jc* him to paint a pretty "picture of the clever scheme whereby credit is created for the housing scheme and to himself he proves that it costs the tavpaver nothing. Actually, the total cost "of the scheme to date is about 10 millions. The first three millions was borrowed from the Reserve Bank at 1J per cent, but that soon came to an end—evidently the bank declined to continue the scheme. The rest of the money, seven millions—has been borrowed br the Treasury from the bank at 4 per cent and then the Treasury relcnds the money to the Housing Department at 15 per cent or 1} per cent. The taxpayer, therefore, is contributing more than half the interest on the money. Shortly an internal loan will be necessary to repay to the Reserve Bank the advance,- to the Government, so that, the picture of the creation of credit i* just mere bunk. W. GRAY.
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Auckland Star, Volume LXXI, Issue 83, 8 April 1940, Page 6
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161STATE HOUSING. Auckland Star, Volume LXXI, Issue 83, 8 April 1940, Page 6
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