State Advances

Hawke's Bay Tribune, Volume XII, Issue 232, 13 September 1922, Page 3

State Advances

FINANCE TO SE STRENGTHENED. BY LOAN OF £2,000,000. FOR .MORTGAGE PURPOSES. [Per Press Association.] Wellington, Sept. 13. In the House of Representatives last night, Mr. Massey moved ifa second reading of the State Advances Amendment Bill, which, he said, though not unimportant, purely a machinery measure and added no new feature to the policy of the department. Part 1 of the bill consolidated a number of financial branches of the Government service, thereby making for economy and efficiency. One of the greatest needs of the country at present, he said, was the provision of money for mortgage purposes and he proposed to strengthen the finance of the Advances Department by the addtion of £2,000.000 this year For this money the State would probably have to pay a higher rate of interest than was dnne originally and for that reason he was taking power to charge a higher rate of interest to borrowers, because he could not expect the State to make a loss. He hoped to be able to lend this new money at 5J per cent and this would not interfere with old money, which would continue to be • e . ra t e< Th«. only method of discrimination employed would be first come first served, [f there was no money available at' Hie old rate then the borrower would have the option of taking the new money at the higher rate. Discussing the position of the Reparation Department, Mr. Massey said he proposed to widen its scope so that an industrious man of good character might get a further advance. There would have to be some limit to this, bur it would probably be £250. For this further legislation might be necessary. I?e proposed ultimately to make repatriation a permanent department. There had been some complaint of late that the Government lending department had not been doing sufficient in the way of advances. In reply to this criticism he quoted from a return showing that during the last twelve months £3.707,801 had been lent to the public by the State under various heads and this, he thought, was a very creditable result. Mr. T. K. Sidey said no department of the State had given greater justification of its existence than the State Advances. It belied all the criticisms of its opponents when started. The bill generally was a Confession of failure because it brought a number of departments which had failed under the head of one department which Jiad been a success. This applied with especial force to the Housing Department, which bad got into a mess. Kb more houses were to be built and the State Advances office was being called in to do cleaning up. He admitted that the new money spoken of by the Premier would be of service to the country. Messrs D. Jones. G. Witty, Sir John Luke, J. A. Hanan, J. McCombs, the Hon. G. J. Anderson. P Fraser, W. D. Lysnar. S. G. Smith, J. A. Young, D. G. Sullivan, 0. J. Hawken, R. A. Wright and H. E. Holland continued the debate. Mr. Massey replied briefly and the bill was read the second time. The House rose at 12.40 a.m.