STATE ADVANCES BILL.

New Zealand Herald, Volume LX, Issue 18457, 21 July 1923, Page 10

STATE ADVANCES BILL.

COMMITTEE STAGE PASSED.

THE PROVISION OF. FUNDS.

'MONEY FOR LOCAL BODIES.

PREVENTING RE-LENDING.

[by. telegraph.— reporter.] WELLINGTON. Friday.

Tho committee stage .of the State Advances Amendment Bill was taken in the House of Representatives this afternoon. Mr. Wilford, Leader of the Opposition, raised the point that sub-lessees should bo enabled to borrow on their securities. Ho referred particularly to the Rotorua and Hutt districts, and said that, if no lessees had the opportunity of borrowing, his claim would nob be so strong, but as lease-in-perpetuity men were entitled to come in it was a fair thing that tho right should be extended to sublessees.

The Hon. J. A. Hanan car gill) asked what was the good of the Prime .Minister getting more money for the State Advances Office it if had not restored tho money that ought to be there. He claimed that £1,160,000 had been taken out of the funds of the office. Mr. A. D. McLeod (Wairarapa) urged that tho number of valuation officers should be increased. Another question asked was how the position that would be created when tho Bill became law was going to be dealt with. Mr. Massey said he was not going to bring about a rush or boom, or anything that would cause prices to go up. Mr. Wilford: Will it be first come first served ?

Mr. Massey: Oh, yes. Mr. "Wilford: How are you going to stop a rush ? Mr. Massey: I cannot prevent people coming in, but I am not going to hand tho money out in shovelfuls. (Laughter.) With regard to sub-lessees, ii was all a question 'of security, and depended on .the officer of the department reporting that the security was good ."nough. He would have to find that out, and then take power to grant the application. The Funds Available. Regarding the funds of the office, said Mr. Massey, there was £2,000,000 that was paid back, and that had been used. The office was now using another 000,000, and £2,000.000 more were in sight, which he proposed to hand over. The £1,160,000 that had been mentioned was included in the second £2,000,000 paid to the office. In regard to valuation, he would take steps to see there was a sufficient number of valuers. Action had already been taken in that matter, and that was really all he could do. It would never do for a political head to interfere in the actual values.

Mr. H. E. Holland, Leader of the Labour Party, sought to obtain an undertaking from the Prime Minister that the Housing Act of 191& would be allowed to remain in full force, and that the State Advances Board would have full discretion to decide whether an application by any individual should be dealt with under the 1919 Act, or the new one. He also asked- that the board should be under a duty to grant avery application which was In order, provided money was available. Loans in Last Three Months. The Prime Minister replied that the board was composed entirely of Government officials. It was non-political, and the Minister was not a member, and would _ not interfere with it. If plenty of capital were available, the board would not, he thought, put any obstacle in an applicant's way. He mentioned that during the past three months, the board had advanced for all purpose?. £882,160. Ha thought that a good record. Of that amount £713,472 was for new houses.

• Mr. F. J. Rolleston (Timaru), asked whether the limit of £10,000 placed on the advance to any local body for housing in One year would be removed. He*' said that this would require new regulations. The local bodies wanted to know their responsibilities under the scheme. The discussion had showed the mischief of having two schemes running together. It eeemec that the policy of the department' was to refuse applications under the 1919 Act. Mr. P. Fraser (Wellington Central) : Quito so. They are entirely hostile.

The Prime Minister replied that he J hoped to bo able to lend more money to local bodies;, but it should bo remembered that the scheme was intended to serve two purposes, to meet the termination of the moratorium and to provide pew loans. If he went too far in lending to local bodies for housing he might find himself short of money for loans to settlers, and for meeting the end of the moratorium. The £10 deposit system would probably be used in future for those applicants who could not find a 5 per cent, deposit.

In reply to some further remarks by members, Mr. Massey said that he intended to make a new regulation with the object of preventing as far as ; possible loans to people who merely wanted the money for relending. Premier and Patience. The discussion was continued in the evening, when Mr. Massey said hie was sorry so much time had been taken up, and no forward move made.

Mr. H. Atmois (Nelson): -We have cleared up a few points.

Mr. Massey: Certainly, and let mo say I don't object to criticism— a blessed bit. (Laughter.) .

The Bill, ho said, was the most liberal and democratic measure ever introduced in any Parliament in. the world. He was doing his best to assist settlers and works, for they deserved assistance, and why some members had been quibbling over the Bill ho could not imagine. Mr. Wilford said ho hoped the Prime Minister was not referring to any Liberal members. Any patient Minister would recognise it was advisable to allow full scope for discussion on the. . short titles, and there would be practically no discussion on the clauses at all.

' Mr. Massey: I don't know that there won't be.

Mr. Wilford: There is no obstruction to this Bill.. If the Prime Minister will only exercise patience .

Mr. Massey: I am the most patient man in the House. (Laughter.)

Mr. Wilford: Up to three years ago— yes; but I can't say so now.

Dealing with an intended amendment by Mr. It. Masters (Stratford), reducing the rate of interest on loans for the repayment of existing mortgages from 5£ to 4£ per cent., Mr, Massey Raid there was an enormous amount of money out on mortgage at 6 per cent, or more. Many of the mortgagors were not in any difficulty. If they were allowed to come in on very favourable terms, there would be a rush for cheap money, and deserving people who had no mortgages would not be able to get- the loans they needed, and the Government would not bo able to use the new legislation to meet the termination of the moratorium at the end of next year. Amending Hate 61* Interest. When Mr. Masters subsequently moved his amendment, the Prime Minister stated that during the supper adjournment he had consulted the Superintendent of the State Advances, who considered, as he did, that the amendment struck at the very root of the Bill. His own view was that the amendment would undo all the good which the Bill had been introduced to effectMr. Wilford agreed that the amendment struck at the Bill because the latter was a policy measure, but ho did not admit that it struck at the root of the Bill. ._

The amendment was lost by 28 to 32. In reply to Mr. W. E. Parry (Auckland Central), the Prime Minister said that ho intended to make Crown ' lands at El erslio (Auckland) and elsewhere available for the erection of houses thereon as the need aros£l - The necessary roadtK up can ' out " as . sectio were meut 0 2nd t£f♦W? P J* ted without «"«>eudII Ik*? i£* thTd reudin 2 was carried