LOANS LITTLE USE

Dominion, Volume 23, Issue 220, 13 June 1930, Page 11

LOANS LITTLE USE

Advances for Houses TIGHTER PURSE-STRINGS Dominion Special Service. Palmerston North, June 12. The Government is tightening up to such an extent in regard to advances to workers that home-building on Government loans has been greatly reduced, in Palmerston North at least, a land agent informed a “Dominion” representative to-day. He stated that of seven recent applicants for Government loans with whom he had dealt, only two had been able to avail themselves of the money. Tho position was that although the Government undertook to advance 90 per cent, of the valuation of a proposed building, nowadays only about 70 per cent, was forthcoming. The result was the applicant in most cases found the loan money insufficient. Actually, a worker needed to have about £2OO in hand for -the loan to be of any use to him, or else he must hold a section free of debt. There were few workers in either position, and, added to that, the fact that an agent was generally not prepared to take over the supervision of the undertaking unless a worker was possessed of a section without debt, very little was being done at present in the direction of building on workers’ loans. No doubt the fear of unsound undertakings with applicants was having its repercussion in the present tightening up in the amount advanced on the valuations. In that connection, it was understandable that the Government should now wish to guard against unsatisfactory applicants whose financial instability would throw houses back on the hands of the State after the work had been finished, and it was found by the workers that they were unable to meet thoir obligations. It was also reasonable that a worker should not look to the Government to finance him entirely into a home, but that he should make some contribution himself. However, a worker was seldom in the position of having more than £5O. and few had the £2OO required. The Government had ( tightened up too much. The genuine worker who wanted to build a home was unable to do so. and the very object of the advances to workers legislation was being defeated.