LOANS FOR ORCHARDISTS.

New Zealand Herald, Volume LXIII, Issue 19476, 4 November 1926, Page 14

LOANS FOR ORCHARDISTS.

STATE ADVANCES SCHEME.

REQUEST TO THE MINISTER.

I The question of State loans for orcEardists was yesterday brought before the Hon. O. J. Hawken, Minister of Agriculture, by Captain J. A. Lambden, chairman of the Huapai Fruit Growers' Society. " • Captain Lambden said fruit farmers 'found it impossible to borrow from the State Advances Department, although in many cases their orchards wsre valuable securities. He had recently approached the Prime Minister on the question, and Mr. Coates had shown his sympathy toward the orchardists. He had mentioned a scheme whereby a special branch of the State Advances Department could be formed, and to which capital could be allocated amounting to between £250,000 and £500,000, for advances to orchardists. They were not sure whether this scheme had ever received further consideration. The Minister assured his hearers the scheme was discussed, but the State Advances Office was very particular about its security, and took no risks. 'For this reason it had been strongly represented that orchards offered too big a risk to accept in connection with loans. In the pressure of business during the past session the question was not gone into fully, | and all they were able to do was to solve tho difficult question of long-term mortgages. Intermediate -credit was not considered, and he was inclined to think this would be of value to orchardists. It would certainly be discussed next session. They could not get away from the fact that a considerable amount of risk was attached to a loan to a fruit farmer who started a,n orchard in a new district, no matter what his capabilities were. However, he believed finance could be arranged for orchardists to the satisfaction of lender and borrower alike. It was not right to saddle the industry with dear money because of the risk, but he thought some arrangement could be made. Captain Lambden said most orchardists had managed to carry on without loans, and there were few working with borrowed money. Under the provisions of the Advances to Settlers Act money had been secured for houses.

s The Minister: Well, I am glad to hear there is one section of the community that does not owe too much.