Opposition Attacks, Minister Defends Conduct Of S.A.C.

Press, Volume C, Issue 29624, 21 September 1961, Page 16

Opposition Attacks, Minister Defends Conduct Of S.A.C.

Press Association)

WELLINGTON, Sept, 20. The State Advances Corporation received criticism and praise in the House of Representatives today for its handling of rent intr eases and pensioners’ exemptions. M:ss M. B Howard’ (Opposition. Sydenham) said the corporation was “a law onto themselves" and "it’s time they were straightened up" The Minister in charge of the Corporation (Mr Rae) disagreed: "The State Advances is a very well-run organisation. The corporation officers are to be congratulated on their handling of this matter” Mr W. A. Fox (Opposition. Miramar) blamed the Government for giving the corporation too much work to do in too little time. "The Government could have waited a couple of months before making the in. creases and avoided all this distress," he said

Mr M Moohan (Opposition. Petone) said the corporation had gone ahead and notified all State house tenants of rent increases instead of excluding pensioner*. There's something definitely wrong with the system somewhere.”

Mr C L Carr Timaru) said most people in the State Advances Corporation were “good and worthy " There were a few exceptions “and they are very, very exceptional indeed. ,

“Some corporation officers are courteous to a faultothers couldn't be more despicable in their treatment of members of the public.” he said.

Mr A. J. Faulkner (Opposition. Roskill) said it was nonsensical to blame the corporation when the Government’s own “muddlement" was at fault. Ten pages of instructions on the rent increases had gone out to the corporation. Miss Howard called on Mr Rae to see that the corporation did its work systematically. “He should stir them up—he would go down in history if he did,” Rents were being increased before “the poor pensioner” had a chance to say anything, she said. "What an effect this has on old people. It's not fair, it’s not honest and it’s not decent" Mr Rae said he could not subscribe to Miss Howard's view that the corporation was a “law unto themselves." It was very well managed, he said.

The corporation had grown into a mighty business with total assets of £3OO million, he said. From 30.000 to 40.000 assessment notices had gone out to State house tenants giving a month’s notice of increases.

“Let there be no doubt that anyone on a means test rent will not be charged any more," he said.

Mr Rae said there had been remarkably few complaints considering the size of the job.

Mr W. W. Freer (Opposition, Mt. Albert): Any error is in favour of the corporation.

Mr Rae said he was "only too happy” to investigate any complaint. No Change in Ruling

Mr Freer asked what would happen about people going on to a pension in the next six or nine months. Mr Rae replied that they would be able to apply for exemption from rent increases.

Mr Moohan, referring to Ministerial statements on rent exemptions for pensioners, said: “Everybody seems to have heard the Minister except the State Advances.” The corporation had gone ahead and notified all State house tenants of pending increases.

There is something definitely wrong with the system somewhere,” said Mr Moohan, who described the effect of an assessment notice on a woman of 80 residing in his electorate— ‘She was very upset.’’ Mr Carr said the State Advances when it was still a Government department, before it became a public corporation, was very accessible to members of Parliament. Today it doesn't seem to be responsible to anyone, least of all to members of Parliament"