£22.5m In Family Benefits Capitalised In Three Years

Press, Volume CI, Issue 29800, 17 April 1962, Page 16

£22.5m In Family Benefits Capitalised In Three Years

(From Our Own Reporter)

WELLINGTON, April 16. Though the numbers of applications for capitalisation of the family benefit have dropped slightly since the scheme began just over three years ago, details provided by the Minister of Social Security (Mr McKay) indicate that there is still a very strong demand for this kind of home finance

In the three financial years terminating on March 31 last 36.446 certificates have been issued. These represent s total value of £22.557.911 tn benefits capitalised. The numbers of certificates issued in each of the three financial years mentioned, together with their capitalised values, are as follows: 195960, 15,265, £9,363,563; 1960-61, 11,442, £7,234,836; 1961-62. 9739, £5,959,512.

The family benefit may be capitalised to buy a new house: to repay or reduce a mortgage or other encumbrance on a home; to permit alterations or additions to a home; to purchase land from the Crown with a dwelling; or to repay the balance of a previous advance.

Capitalisation has been carried out in all categories. By far the most popular, however, has been the purchase or building of new homes. A total of 27,091 certificates have been issued for this purpose, and the total value of the capitalisation involved has been £18,135.831. Details for each financial year in each category are as follows:

Purchase or erection of new home: 1959-60. 11.362 certificates issued. £7,199.332 capitalised value: 1960-61. 8674, £5.904.245; 1961-62. 7055. £4.741,254. Repayment or reduction erf mortgage or other encumbrance:, 1959-60, 2069, £963,785; 1960-61, 1139, £524,726; 1961-62, 1003. £446,141. Totals for three years: 4211, £1,934,652. Alteration or addition to homes: 1959-60, 1834, £909,446 1980-61, 1629, £805,865; 196162. 1290, £680,736. Totals for three years: 4762, £2.376.047 Purchase of land from the Crown with dwelling: (1961-2 only): 377, £lO9 811. Repayment of balance of a previous advance (1961-62 only): 5. £1570. Demand In City The demand for capitalisation in the Christchurch ftrea during the last three years

has been steadier than for the whole of New Zealand. In the three-year period ended on March 31, 1962, there have been 4081 certificates of eligibility issued in the Christchurch area. The capitalised value of these has been £2,355,257. Details for each financial year for Christchurch are as follows: Purchase or erection of new home: 1959-60, 1337 certificates issued, of £844.665 capitalised value; 1960-61. 891. £573.042; 1961-62, 696. £429 770.

Repayment or reduction of mortgage: 1959-60, 301, £128,794; 1960-61, 122, £52,467; 1961-62. 163, £69.465. Alteration or addition: 1959-60, 215. £102,024; 196061, 176, £79,672; 1961-62, 148, £69.266.

Purchase of land from Crown (.1961-62 only) 29, £5992. Repayment of balance of a previous advance, nil, nil. For each of the three financial years, the totals were as follows: 1959-60, 1853 certificates, of a total value of £1,075.583; 1960-61, 1192. £705,181; 1961-62. 1036, £574,493.

The weekly totals for the last financial year showed a great deal of variation, but no evidence of a gradual reduction as the year went on The greatest number of certificates issued in any one week was 38. and this occurred twice—in the week ending May 12. 1961. and in the one ended March 2, 1962. The weekly average was 20 certificates issued, valued at £11,050.