SUBSTANTIAL GRANTS FOR FLOOD RELIEF: MAYOR’S PROPOSALS

Gisborne Herald, Volume LXXV, Issue 22666, 17 June 1948, Page 6

SUBSTANTIAL GRANTS FOR FLOOD RELIEF: MAYOR’S PROPOSALS

PREMIER'S ASSURANCE

PROPOSALS for the provision of substantial funds by way of grants for the relief of flood suffering and for the administration of relief by a tribunal not confined entirely to departmental officers were submitted to the Premier, Mr. P. Fraser, yesterday by the Mayor, Mr. N. H. Bull, in a discussion upon the effects of the recent disaster in the Gisborne district.

The Mayor warmly welcomed the Prime Minister’s visit as a further indication of his sympathy with the sufferings caused by the flood, and mentioned with gratitude Mr. Fraser’3 prompt and generous response to the earlier call for assistance from the State. He added that the proposals for State financial assistance for flood sufferers also were welcomed, though with servationsThree classes of Flood Sufferers After outlining the terms of the offers of assistance already made to settlers in the flood area, including subsistence, grants and loans, Mr. Bull remarked that those who had suffered flood damage could be divided generaly into three classes, as under:—

(a) Those who can, from their own resources, provide for their losses without undue hardship. (bl Those who cannot, without hardship, and without imperilling thensolvency. do this. . (cl Those who are completely ruined or so drpnaged that they have no hope of re-establishing themselves through the usual financial channels.

ground of inadequacy of the relief grantedThe Prime Minister asked whether, in the event of an essential household article being ruined, the grant would enable the applicant to replace it? He was informed that the grant would not pay for a new article, and he remarked that, in his opinion, the grant should piovide for replacement. Major Elliott, speaking on behalf of the relief" committee, mentioned the case of a woman who, through domestic circumstances, was unable to save her floor-coverings and suffered furniture losses, and had received a grant of £4O from the Government. Mr. Fraser: A £4O grant would not cover her loss!

“Now, sir, I do strongly suggest that the relief offered is not adequate to meet those in the last two classes to which I have referred,” continued Mr. Bull.

“What is required, I suggest, is a bold and statesmanlike action. The only solution to this district’s problem is that a substantial sum be made available in the meantime by way of grant to flood sufferers. “The next suggestion I make—and I feel confident it is not beyond the ingenuity of man to devise —is the establishment of a national fund to provide for disasters of this nature, not only in this district but throughout New Zealand: and when the _ necessary scheme is set up and legislation, u necessarv. passed, the amounts now advanced to Gisborne flood victims be a first charge upon it. “My third suggestion is that the administration of this fund be placed in the hands of a board of competent experts. and not left entirely to departments of State.” Mr. Fraser’s Assurance to Deputation An assurance that the creation of k a special fund to deal with the present claims for flood relief in the Gisborne district is unnecessary, for the reason that the whole resources of the country are behind the Government’s programme of assistance to flood victims, was given by the Prime Minister, Mr. P. Fraser, to a deputation which waited upon him yesterday. He stated his opinion that the essential objects of the relief programme should be to make homes livable and to restore the incomes of families in the shortest time possible. If the circumstances warranted it, the State could bear the whole cost of replacing or repairing household effects which were necessary to the housewife; while restoration of production from the farms should be treated as part of the national economic effort.

He added that the Government did not want the relief programme administered in any niggardly manner. He recognised that departmental officers were laudably protecting State funds, of course. Merchants Helping Farmers In reply to a question from Mr. Fraser, the spokesman for Federated Farmers, Mr. C. H. Williams, stated that the merchants of Gisborne were doing their very best for the farmers. Mr. Williams added that he personally felt that the Government departments were administering the funds fairly and squarely. He took occasion to thank the Prime Minister for the prompt action he had taken in answer to the federation’s requests, and particularly for the use of Army transport for the Young Farmers’ Club’s fencing party. Mr. Fraser had created a record in cutting "red tape,” he thought. The Prime Minister, who had previously remarked to the Mayor that the Army had done a good job in delivering clothing stocks to Gisborne, commented on this occasion that apparently the Army had again been right on the job. The federation spokesman approved the proposal to set up an advisory committee to deal with applications for loans. He thought it necessary to have some authority to see that inequality of treatment should not occur. One man might have seen the work of 30 yeais wiped out, and because of his thrift and a consequent balance in the bank might miss out on relief; whereas another man had had the same opportunities and made less of them might get relief under all available heads. Mr. Fraser: We don’t want to see a man with £2OO or £3OO in the bank compelled to utilise all his resources! Determination of Liability

Replying to representations by the Mayor, Mr Bull, the Prime Minister stated that the establishment of a special fund for flood disasters and other forms of natural upheaval was something for the future. In the meantime they- had to deal with the effects of the Gisborne flood as they stood, and he hoped that people's minds would be relieved of pressure as to the availability of State aid.

The State Advances representative said that sustenance had been made available except where applicants had large bank balances. In all other cases, account had been taken of the fact that most of the applicants’ own money would be taken up in rehabilitation work.

“People Will Not Be Harassed”

It seemed to him to be no disadvantage to enter into loan commitments with the understanding that if the applicant proved unable to meet the commitment, it would be wiped off in part or in whole. He would like the people concerned to feel that, while the money might be on a loan basis in the first place, they would not be harassed if they were not in a position to meet interest or principal. He had been impressed with the

In reply to Mr. Williams, the Prime Minister agreed that applicants for loans should have their liability determined within a reasonable period, and should not have the loans hanging around their necks indefinitely.

marvellous manner in which the people of the district had rallied to assist the flood sufferers, said Mr. Fraser, and he hoped the Government programme would be worthy of that spirit. He paid a tribute to the leadership given to district residents during the crisis, and remarked that the occasion must have established a real community of interest.

He also agreed to take up the matter of the Government paying the added costs of delivery of posts from a Napier shipment which had been railed to Gisborne. Mr. Fraser said that he had understood this to have been accepted by the Government. Mr. J. Leggat, representing the Gisborne Returned Services’ Association, said that he had intended to represent to the Prime Minister the difficulties of returned men under rehabilitation loans whose assets had been wiped out. He felt, however, that, in view of Mr. Fraser’s assurances, he need say little on that point. He hoped that the precedent set in the case of the Canterbury floods three or four years ago would be applied in Gisborne district cases.

“The farmers in the flood area must not be ruined. It is not the intention of the Government that they should be,” added Mr. Fraser. “Even people who have their own finances may need help with materials not otherwise available. I wish to ensure that everybody who has suffered from the flood will have his chance to make good again and recover prosperity. If that is not possible under the present scheme, we will have to devise other means.” The Prime Minister welcomed the suggestion from the Mayor that relief should be administered by a committee of citizens who could assist departmental officers. He agreed that people in touch with the circumstances of applicants might be able to help a great deal, though it was not advisable to make application through the committee compulsory. He would discuss the matter with Mr. W. Nash on his return to Wellington, he promised. 170 Applications For Relief A representative of the State Advances Department present was asked by Mr. Fraser to give some details of applications. He stated that 170 applications for relief had been received, and all had been dealt with except 23, which were now under action. Two complaints had been received on the