STATE ADVANCES PASSED

Evening Star, Issue 18333, 21 July 1923, Page 13

STATE ADVANCES PASSED

TOTAL CRITICISMS.

[Per United Press Association.]

WELLINGTON, July 20. At the afternoon sitting the House wont into committee on the State Advances Amendment Bill. On clause 1 (short title) a good deal of criticism was levelled at tne departmental lack of enterprise in the provision of housing accommodation. Mr Massey replied that so long as the security was good the Workers' Dwelling Act would operate. Ho agreed that the sub-lessees, where the security was adequate, should have the benefit of the Act. The Prime Minister added that ho wished to see the advances restored as early us possible to the figures formerly operative —£3,500 for settlers and £1,250 for workers. In the case of a worker applying for an advance the Prime Minister advised that ho should see that his house was built at a reasonable price. He should not pay more than a day’s wage per week in interest charges on the loan. Mr H. E. Holland asked if the Advances Board was to have power to supersede the Act in the matter of making advances. The board should be obliged to grant any application so long as everything was in order, thus keeping the 1919 Act in full operation. The Prime Minister, in reply, said that he thought the board had power to override the superintendent in certain cases. It was sometimes found that although everything appeared in proper order there were other factors bearing on the position, making the grant of nn advance inadvisable. As showing that the department was not halting the operations, Mr Massey said that advances of all sorts to local bodies and private applicants during the three months ended June 30 lust amounted to £882,160, and he expected that tills amount would bo doubled in the next three months. Mr R. Masters, said that he would at the proper stage move an amendment, the effect of which would be to repeal clause 16 of the Act of 1922. This would mean that where anyone wished to borrow money to pay off a mortgage be should be able to do so at the same rate of interest as In the case of an advance granted on unpledged security. Replying to further points raised, the Prime Minister said that he hoped to bo able to advance moro money to local bodies and to settlers. Especial attention would bo necessary in the latter case to assist settlers requiring advances to meet mortgages that would have to bo repaid when the moratorium ended. Ho, as Minister, must bo careful in making advances, or he would have difficulty in finding money for the last-named purpose. Mr P. Eraser said that it was well known that the department had no sympathy with the Housing Act. He accepted the Prime Minister's assurance that ho was sympathetic, but something moro was necessary. The department must bo instructed to give some effect to the Housing Act. The Hon. J. A. Eanan said that some American municipalities were offering concessions in the shape of freedom from rates, etc., for six years, and tho results had been most satisfactory. He, however, hoped that tho Government would not go in for a policy of recklessness. He did not wish to see the State Advances Department wrecked by financial prodigality. Mr W. Poland protested against the proposal to charge borrowers 54 per cent, when they required • money to pay of! existing mortgages, whereas the man who had no mortgage could borrow at per cent. Ho aslced the Prime Minister to place the country settlors on tho same footing as tho workers in tho towns — namely, to lend thorn up to 95 per cent, of the value of their property. The proposal in tho Bill was most unfair, because there was far less risk with the settler who held a farm than with the worker who wanted a house.

Mr D. Masters also protested against tho differentiation between the settlers and the workers. One was just as essential to tho prosperity of tho country as the other.

Air Massey, In reply, contended that if they attemnted to relieve everybody from the existing mortgages the Advances .Department would simply be swamped. There would bo tens of thousands of applicants, and he could not see that the people who already had mortgages and were protected by the moratorium should have preference over tho people who wanted to make a now start. That was tho justification for charging a higher rate for money required to pay off existing mortgages. The House agreed to that provision last session without tho slightest protest, and he could not understand tho present opposition. Mr J. M. Dickson urged the Premier to modify Ids Bill in tho direction of equalising the rate of interest between old and new mortgages. Mr Massey: If you want to spoil tho Bill that is tho way to do it. After a further protest by Mr Dickson, Dir Massey said that he would ask the House to make tho minimum 6 per cent. Mr Dickson: That would be better. Mr Massey: Tho responsibility rests with the House. The short title of tho Bill was then agreed to, and tiro remaining clauses were quickly passed. Mr Mast-era moved a now clause repealing sub-section of clausa 16 of tho Slate Advances Act, 1522, which provides that money required to pay off mortgages should boar an additional 1 per coni, interest over new loans. Dir Massey said ho had just consulted with tho head of this department concerning the amendment, and ho agreed that if it were passed it would strike at the very root of tho measure and undo all the good work already done. Mr T. M. Wilford said ho could not see how it would wreck the Bill, and ho would save the Government from itself. A division was called for, when 'he voting was:—For the amendment ... „. 23 Against tho amendment ... 32 Tho Bill was then reported without amendment. On tho third reading Dir Bertram said ho regretted that the Bill was not moro liberal. Ho bad intended moving an amendment in that direction, but, finding it was -an appropriation clause, ho did rot do so. As, however, they had tho assurance of tiio Premier that the 1c islation of 1919 would be still kept in force, tho position was somewhat improved. 110 hoped departmental opposition to the Housing Act would cease.

The Bill was then read a third time and passed.