LOANS TO WORKERS

Evening Post, Volume CIX, Issue 129, 4 June 1930, Page 12

LOANS TO WORKERS

NOT.BEING EEDUCED

MINISTER'S ASSURANCE

One- of the requests made to the Government this morning by a deputation from the local branch of the Amalgamated Society of Carpenters and Joiners was that tho full amount of loans applied for under the advances to workers scheme should be granted by the Department.

Mr. J. M. Stobart, national secretary of tho society, said he had been informed of cases in which £.1000 had been applied for but only £800 was granted. The result was that the applicant worker had to procure a second mortgage to enable him to complete his house, and tho rate of interest for loans on second mortgage -went as high as 12 per cent. Mr. Stobart said that in such circumstances the . worker could not meet his financial obligations, and his distress was increased ■ when he became unemployed. That was why so many workers were refusing the State Advances loans.

The Minister of Lands (the Hon. E. A. Ransom) said he thought the speaker was labouring under a misunderstanding in regard to advances through the Department. Applications had passed through his hands in which he knew tho applicants considered their cases would be stronger if they asked for a bit more than they wanted. Many loans had been declined or roduced because of that.. Mr. Kansom said he believed the State Advances Department was .interpreting tho Act so far as workers were concerned quite correctly, and that it was not endeavouring to reduce tho amounts applied for as a general rule. Mr. W. Nash, M.P.: "Would you emphasise that point to tho Department —that when the value is there they should advance up to 931 per cent, of the value?"

The Minister asked if Mr. Nash could give definite instances where the Department was not doing so. "There is no question about it," said Mr. Nash; "they are offering less than 95 per cent." ' Mr. Ransom pointed out that in the last eighteen months there had been a large increase in the amount of money advanced through the Department for tho erection of workers' homes. The money was not being withheld, for there had been a phenomenal sum advanced in tho periojt he referred to.