Loans to wealthy defended

Press, 1 February 1983, Page 6

Loans to wealthy defended

PA Wellington The acting Prime Minister. Mr Maclntyre. yesterday defended Siate loans for wealthy farmland developers. saying. “How do you decide who is Mr Wealthy and who is Mr Poor?” Mr Maclntyre said that a "wrong interpretation" had been put on Rural Bank loans made to an Auckland businessman. Mr John Spencer. Some people believed that when there was a shortage of money, funds should not be given to people “who appear to be well off.” he said. However, the Government had set aside money to improve the country's production — through land development and livestock incentives. The loans were not made on the basis of whether the applicant was “big or little, wealthy or poor." Mr MacIntyre said. Increases of production on Mr Spencer's land had been to the benefit of the country, he said. The Rural Bank has told Parliament that because of a lack of money it had to turn down applications for loans. Mr Maclntyre said that at November last year, the

Government was receiving applications in the vicinity of $2O million a month for the development of Crown lands and was allocating between $l2 million and $l4 million. “There is always someone who makes an application and does not get it." If the Government was going to differentiate between who received the loans it would have to introduce a cut-off point. Mr Maclntyre said. “How do you decide who is Mr Wealthy and who is Mr Poor? “Who is the one who has the most ablility?" The Rural Bank does its best to see that its money is applied where it gives the greatest benefit to New Zealand, he said. Mr Maclntyre yesterday received a letter from Labour members of Parliament, Dr Michael Bassett, and Mr Richard Prebble, insisting that the Ombudsman’s terms of reference of his inquiry into the Rural Bank be extended to cover loans granted to the Spencer family throughout New Zealand. “We believe very strongly that only a full open public inquiry can reveal the true extent of the Rural Bank

loans to 'Queen Street businessmen'." they said. They said last week that Mr Spencer had obtained Rural Bank loans for a South Auckland property as well as the Waiheke Island land which led to the inquiry. Mr Prebble and Dr Bassett say that a legal opinion confirms their belief that the inquiry is limited to Rural Bank loans granted to Mr Spencer, on Waiheke Island. The chief Ombudsman. Mr George Laking. said last week that he had power to investigate other related matters and “I may well do so if there is good reason." Mr Laking said that he would consult the Prime Minister and the Leader of the Opposition over investigating other related matters, if it seemed necessary. Mr Maclntyre said that the Government had not been approached by the Ombudsman. Asked if Mr Laking would be able to investigate the South Auckland loans, Mr Maclntyre replied: “He has indicated that he believes it is wide enough for him to do what he has been invited to do. If he wishes to widen the scope he has the power to ask for it to be widened."