STATE ADVANCES

Hawke's Bay Tribune, Volume XXVI, Issue 147, 6 June 1936, Page 7

STATE ADVANCES

Upper House Passes the Bill DEVELOPMENT PLAN By Telegraph—Press Association WELLINGTON, Juno 5. Moving the second reading of the State Advances Corporation Bill in the Legislative Council to-day, the Hon. M. Fagan said that tho Bill provided for the old Stale Advances principle, which was that the State should do the work. Tho State Advances legislation had played a big part in the development of the Dominion. Sinee the system had been in operation £75,000,000 had been advanced, of which £41.000,000 was still owing and £34,000,000 had been repaid. It had been estimated that as a result of State Advances operations interest rates had been checked over a period of 40 years to the extent of £20,000,000. The Mortgage Corporation had done its work well, but would not have been a satisfactory machine for the Government to implement its policy. Further, tho Mortgage Corporation was not speedy enough and acted on a purely commercial basis. Luder the present Government's policy it might be necessary’ for a loss to be made. The loss might be worth while.

Tho Hon. R. Masters said -hat ample money was available to-day for those who required it through the Mortgage Corporation, which was lending money at a cheaper rate than the State Advances Department lent it. The real trouble in the past has been the high land values operating in every part of the Dominion, and iu some cases that had been brought al ut by unnecessarily' easy finance and unnecessarily easy terms.

Ho submitted that he could visualise the State becoming the sole mortgagee in tho Dominion. There would be nothing but political bidding by parties For the reins of office.

The Bill was put through all stages ol passed.