STATE ADVANCES

Evening Post, Volume CXVIII, Issue 35, 10 August 1934, Page 5

STATE ADVANCES

DEPARTMENT'S WORK

DISCUSSION IN HOUSE

Various aspects of tlic administration of the Stato Advances policy were dealt with in the House of .Representatives yesterday afternoon when tho report of the superintendent was under consideration. Mr. W..E. Barnard ('Labour, Napier) drew attention to tho limited powers the Department possessed in dealing with mortgages where payments had fallen into arrears, and where there was little ehauee of tho arrears ever being paid. In those cases it seemed that there should bo something in the nature of a writing-off of principal and interest. Under the law, the Department could postpone payments of instalments, but could not write off oven Cd liability. The power of the Department in respect of writing-off was non-existent, and the Government should do something to improve the position. The office had ceased, for practical purposes, to bo a lending Department. Mr. \V. E. Parry (Labour, Auckland Central) said it was pleasing to note that tho arrears had decreased in tho last three years. Where the Depart mcut was endeavouring to realise on houses, there should be some opportun ity of allowing the previous owner to take over the place again. If the mort gage was to be reduced to someone, as the state of the market would seem to mako necessary, then the previous/owner should be considered. There was scope for the Department as far as the slum areas of the cities were concerned. Mr. 11. G. Dickio (Government, Patca) said that many of the Department's loans wero at a high ra.to of interest, and tho Department might yet have to.lend at a loss. Mr.. E. J. Howard (Labour, Christchurch East): They have only lost 1 per cent, up till now. Mr. Dickie said that loans of latter yoars must present a problem. There was nothing very satisfactory in only 54 per cent, of the mortgagors meeting their commitments. There was a danger of the State Advances Office losing its best assets as a result of properties being paid off with money borrowed at a lower rate of interest. Mr. A. S. Richards (Labour. Roskill) said thaf.if the mortgages were paid off the superintendent would have a sur plus. He doubted whether persons would pay off a long-term mortgage in favour of a short-term private mortgage. Mr. Howard suggested that there should be some co-operation between tho State Advances Department and the unemployment authorities with a view to the maintenance of Governmentowned houses in a good stato of repair. Mr. W, Nash (Labour, Hutt) said it had been stated that the Lower Hutt Borough had lost £20.000 through the State Advances Office failing to pay rates. He considered that if that state ment were correct, then something «hpnld be done to recoup the borough Mr. R. MeKee.n (Labour. Wellington South) said that the attitude of the Department nyer the" i, per cent, rebate was unfair. .