EARTHQUAKE LOANS

Hawke's Bay Tribune, Volume XXV, Issue 232, 17 September 1935, Page 3

EARTHQUAKE LOANS

INTEREST-FREE PERIOD

Big Saving to Hawke’s Bay

RELIEF APPRECIATED • 1 Ths remission of interest for three years to earthquake borrowers will mean a saving of approximately £90,000 to this district, and with the reduction of instalment payments will give substantial relief at a time when most needed.”

The above remarks were made by Mr Haskell Anderson, president of the Napier Rotary Club, during an interesting statement on tho earthquake rehabilitation question at yesterday’s llotary luncheon.

Continuing, Mr Anderson said that they were all pleased with tho latest advice concerning the relief granted. ‘‘The executive of the Earthquake Borrowers’ Association is looking after the interests of Hawke’s Bay from Wairoa to Waipukurau,” said Mr Anderson. ‘‘The Napier members of this executive are all Rotarians, and are doing a grand community service, ft is pleasing to see that the Napier executive has enlisted the services of Rotarian Rolls, who is chairman of the Community Service Committee. The members of the Napier executive are Rotarians Morse, Grant, Spence, Hobson and Ashcroft.” Mr Anderson added that the Hastings Kotary Club was also represented on the Hastings rehabilitation executive. As president of the Napier club he was pleased to see Rotary doing its part in this good work, and he was

sure that all earthquake borrowers in Hawke's Bay would extend their thanks and confidence in tho work

the executive was doing. •‘We have had to work carefully, listen to everything and say little, because we have been faced with delicate situations,” said Rotarian Ashcroft, who is secretary of the Napier executive. ‘‘l think, however, that the whole district will be gratified with the progress which has been made. We were in Wellington recently and had quite a good chat with the Finance Minister, who was very favourably inclined towards us.”

Mr W. A. Whitlock, president of the Hastings Rotary Club, congratulated the people of Napier on securing the re-adjustment of earthquake rehabilitation loan repayments. ‘‘While there are admittedly distinct points of friendly rivalry between Napier and Hastings, the idea that Hastings would gain at the expense of Napier is a thing of the past among the intelligent members of both communities,” said Mr Whitlock. He added that it was recognised that the benefit to Napier was also a benefit to Hastings. MEETING OF BORROWERS Wiping Off of Interest SETTING UP OF TRIBUNAL A meeting of earthquake loan borrowers at Napier last night decided to re-affirm the principle of wiping off interest on earthquake loans, to press for the setting up of a national tribunal, and to take some action towards disposing of borough reconstruction loans. Mr W. E. Barnard, M.P., is to co-oper-ate with the special committee and to invite the support of Messrs H. M. Campbell and A. E. Jull, M.P.’s in these directions.

The chairman, Mr R. C. Wright, briefly introduced Mr Barnard to the meeting. Mr Barnard said the matter in question was not a mere football in party politics, but one in which he was strongly interested as the member for Napier. The question for consideration was whether the relief granted was sufficient, or whether something was still required to be done. He had advised the special committee set up to request the convoking of a tribunal to inquire into all cases of earthquake loan borrowers, but he be lieved that borrowers themselves should decide whether any further steps should be taken.

One matter which should be pressed immediately—one in which as ratepayers they were interested —was the sum of £lOl,OOO borrowed to make good in part the destruction of Napier’s public services—drains, roads, and so forth This was non-interest bearing till 1937. and no-one had been rated in respect of the loan, but last year an effort was made under cover of a petition present cd by earthquake loan borrowers, to get a decision on this £lOl,OOO. But the petition was not drawn to cover that, and consequently tho Parliamentary Committee <'«il not deal with that aspect of rehabilitation at all. In fact, the large public, debt, nearly £1,990,099, would add to the difficulties of Napier people if they had suddenly to pay interest and sinking fund on £lOl,OOO. SHOULD BE WRITTEN OFF. “My own opinion is that these loans diould be written off entirely,” he concluded. In answer to a question, he said the nroblem was not so much financial as -vchological. A man required some proviso of reward for his labours, other's© nil incentive was gone. Another speaker, Mr G. Stanford. »ted to know what was to happen borrowers in their old age—would ' ese loans be a heritage for the child•on of to-day! , Mr TT. E. Edgley said he believed i' <• only wav of dealing with tho problem would be to set up a commission

to inquire into original applications, to refer to people suffering, not only to borrowers, but to pro-'quake mortgagees.

No doubt, there were cases in Napier and Hastings where relief to the mortgagor would be nothing more than relief to the pre-’quake mortgagee. There would be no relief whatever to the mortgagor. The commission should go into the question, and if relief were given, the pre-’quake mortgagee should abate his mortgage. Of course, in some instances mortgagees were deserving of relief, but not in all eases. Mr Barnard said he was rather surprised that members of the special committee, themselves earthquake loan borrowers, were not present at the meeting. However, he would be pleased to co-operate with the committee. THE VITAL INTERESTS. Mr H. M. Bennett questioned the wisdom of asking for further personal relief, as unquestionably definite relief had been given. He believed the vital interests were tho borough loans totalling £lOl,OOO, and the Hawke's Bay Hospital Board loans, the last-mention-ed on behalf of Hawke’s Bay generally. Tho people should press for relief in these directions, as they affected everyone in Napier at least. Mr Barnard concurred that loan borrowers should press for the disposition of the £lOl,OOO borough loans, but he would like the meeting to come to some decision in the matter.

It was finally resolved to re-affirm the principle of wiping off interest on earthquake loans, to press for the setting up of a national tribunal, and to take action towards disposing of borough reconstruction loans. Mr Barnard will seek the co-operation of the special •committee already set up at Napier, as well as Messrs H. M. Campbell and A. E. Jull, M.P.’s.

COMMITTEE’S WORK Appreciation Recorded So little was known of the work which had been done by members of the special committee set up some. time ago to bring about improved conditions for those affected by earthquake loans, that last night Mr C. O. McNaught, chairman of the Napier Progressive Association, said he was prompted to record the appreciation of earthquake loan borrowers in the town.

He said, “On behalf of those members of our association who received loans for rehabilitation purposes from the Government, I desire to express appreciation of the wonderful work done by all members of the special committee appointed by those having received loans to make representations to the Government for relief from paying interest on such loans and to have the free interest period extended for at least a furthei three years. “It is indeed very gratifying to all those interested to know that their efforts have been rewarded and that relief has now been granted by the Government, for which they are thankful.

“However, it must not be forgotten that members of the special committee have rendered signal service to their fellow citizens of Napier, and to them much credit is due.”