Interest-Free Loans For Waikato Flood Repairs

Press, Volume XCVII, Issue 28531, 10 March 1958, Page 8

Interest-Free Loans For Waikato Flood Repairs

(New Zealand Press Association)

AUCKLAND, March 9. The Acting-Prime Minister (Mr Skinner) will announce details of Government aid to Waikato farmers who lost stock and had pastures damaged in the recent floods and, probably, to uninsured flood victims after a meeting of Cabinet tomorrow. Ending a week-end tour by plane, boat and car of the Waikato and Waipa flood areas, Mr Skinner today said farm relief measures would include interestfree loans and regrassing subsidies. The uninsured might get Government loans, he said. But, he added, there might be a labour shortage in restoring farm flood damage. “Loans are not enough if there is insufficient labour. It may be possible to recruit special week-end farm labour, but there is just not enough ordinary labour in the farming districts. “Interest-free loans, reviewed, refinanced or even converted to grants after, say, three years, are, I think, as good as we can do. I cannot see how short-term finance can otherwise be arranged. By trying these loans we can give assistance quickly.” Decision for Cabinet “A definite decision will be reached by Cabinet. I am sure as much assistance as given previously will be made available. Grass feed, fertiliser and fencing materials are in good supply. Labour and administration are the main problems. Some damage, a real burden to one man, was “just chickenfeed” to another, said Mr Skinner. “The only way to handle it is to give relief committees more autonomy and elbow room. We will give them greater discretion in recommending relief. It is neither fair nor possible to standardise some aspects of aid. “People who settle in areas where the flood risk is apparent usually establish themselves at a lower capital cost. If the Government is going to assume responsibility for compensation, it is increasing the capital value of these properties. The Government will help—any government would —but it cannot be taken for granted we will compensate to the full extent of losses.” Mr Skinner said it would be about three months before total flood devastation would be assessed and perhaps two seasons before some farmers could recover and make good damage to their properties. Losses by Uninsured Asked about help for uninsured householders, Mr Skinner questioned whether it was a Government responsibility to “encourage people not to insure.” “The Government is torn between two channels. But people are still sitting on soggy mattresses on their lawns and help may be given by loans. That will be decided very soon.”

Mr Skinner hinted that such a loan might be interest-free because the Government had already clarified relief terms for householders. There was no need for a commission to co-ordinate reinstatement, he said.

“Having the Waikato Valley Authority, do we need a commission?” Difficulties at Kaitaia were mostly overcome and much of the damage there had been restored, he said. “But flooding in the Waikato is almost becoming monotonous and the authority has a great deal of work ahead of it.”