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Hokitika Guardian, 29 April 1939, Page 5

STOPPAGE DENIED

STATE ADVANCES

STATEMENT BY. MINISTER,

(Per Press Association.—Copyrightj.

CHRISTCHURCH( April 29. Reports that the State Advances Department had declined to make future loans for houses to; private citizens until May were denied yesterday by the Hon. H. T. Armstrong, Minister in Charge of State Advances. “The only restriction we have made is on the granting of loans for the purchase of existing houses,” -said Mr Armstrong. “That'decision has probably given rise , to. the entirely. erroneous report that all loans have been stopped. The urgent demand in this country is for homes, and,advances are made for. the purchase of' existing houses, the amount available for the construction of new houses must be cut down, by a corresponding amount. To give money from the available funds to purchase homes already 'occupied, would be no contribution to the solving of the housing problem. Everyone will recognise that new homes are wanted.” The sum of £4,000,000 had been made available for building. State rent- . al houses and a; further £2.000,000 was set aside for loans for private building, explained the Minister. 1 His aim was to raise the building or. State houses to 5000 a year so as to keep astride with the natural demand, ai\ amount of £6,000.000 would tliep be required when’that figure of production was reached.

. “However, £2,000,000 will , again be devoted to loans to persons who want their own homes,” said Mr Armstrong. “The raising of the limit of advance from 66 2-5 per cent, to 90 per cent, or higher is a special-offer. .There must be some margin of security, vet some people are so unreasonable as to become annoyed when , the Department declines to grant them 100 per cent, of the cost. Others have offered to' provide £IOO and asked the. Department for- the -balance, f yet they -have available resources sometimes of £SOO. It is . not too-, much do ask them to use their full. resources in obtaining an equity in their own homes.”