STATE ADVANCES

Northern Advocate, 10 August 1934, Page 4

STATE ADVANCES

INTEREST ON MORTGAGES ANNUAL REPORT DISCUSSED (Per Press Association.—Copyright.) WELLINGTON, This Day. The annual report of the State Advances Department Avas discussed in the House of Representatives yesterday. Mr W. E, Barnard (Labour, Napier) said the department should have power to Avrite off principal and interest in cases whore payments had fallen into arrears and there Avas little chance of the arrears being paid. The department could postpone payments of instalments, but could not write even fid off the liability. Air AV. E. Parry (Labour, Auckland Central) said it. Avas pleasing to note that arrears had decreased in the last three years. Where the department was endeavouring to realise on houses! there should he some opportunity given lo the previous owner to take over the place again,

Air IT. G. Dickie (Government, Patea) said many of the department’s loans carried a high rate of interest. The department might yet have to lend at a loss. There was nothing very satisfactory in only 54 per cent of the mortgagors meeting their commitments.

Air A. 8. Richards (Labour, Koskill) said if the mortgages Averc paid off the department Avould have a surplus. He doubted if any person would pay off a long-term mortgage in favour of a short-term private mortgage. Air W. Nash (Labour, Mutt) said it was stated that the Lower Hutt borough had lost £20,000. He thought something should be done to recoup the borough.-

Mr R. McKecn (Labour, Wellington South) thought more should bo done in the way- of giving rebate in interest to mortgagors. lie said the Government had been somewhat unfair in the matter.