CONCERN FELT

Gisborne Herald, Volume LXXIII, Issue 21977, 22 March 1946, Page 4

CONCERN FELT

REPAYMENT AREARS

REHABILITATION LOANS

Concern at the apparently increasing trend among numbers of ex-servicemen to fall into arrears with repayments of certain types of rehabilitation loans, was expressed at the last meeting of the Rehabilitation Board. Free-of-inierest loans to purchase tools of trade and furniture and low interestrate loans to establish business were the types quoted as being more generally in arrears.

The averages for New Zealand of arrears in repayment of these kinds of advances were stated to be: Tools of trade 18.8 per centum of borrowers, furniture 8.2 per centum, and business loans 8.6 per centum. In one large rehabilitation centre the arrears of repayment of fools of trade loans was as high as 42 per cent of borrowers. Loans for tools of trade are advanced up to £SO, for furniture up to £IOO, both free-of-interest, and for the establishment of businesses up to £SOO at 4 per centum, with a special reduction to 2 per centum in the first repayment year.

It was stated that a borrower was regarded as in arreas when lie had missed more than four weeks’ payments.

Board members commented on the worst feature being tools of trade Joans, repayments on which were well within the scope of tradesmen’s wages. It was considered that the only reason for getting in arreas with repayments of such loans should be sickness. The opinion of board members was summarised in the following resolution: “That the board is concerned with the position, especially in view of present economic conditions.” It was decided to draw the attention of all district Rehabilitation Committees to the present trends in arrears and to emphasise that the acceptance of their legitimate responsibilities must be recognised by ex-servicemen if rehabilitation was to be carried to a successful conclusion.