ADVANCES BY STATE.

New Zealand Herald, Volume LXVII, Issue 20650, 23 August 1930, Page 13

ADVANCES BY STATE.

TOTALS FOR THE YEAR. LARGE sum for workers. OVER £1,000,000 TO AUCKLAND. [ill- TELEGRAPH.—SPECIAL REPORTER. ] WELLINGTON, Friday. Advances totalling 2332 and valued at £2,181,410, were mado under tho settlers branch of tho State Advances Office last year, according to tho annual report of tho superintendent of the department presented to Parliament to-day. Of these advances, 951, valued at £852,260, were made to applicants in the Auckland district . Tho net profits for the year were £32,741, and the-cost of management was £34,897, being 2s lid per £IOO of tho gapital employed. In the rural advances branch, tho advances totalled 999, involving £1,481,055. The Auckland advances authorised totalled 397, representing £650.320. The net profits were £5668, and tho cost of management was £2742, or Is 7d per £IOO of tho capital employed. Under the workers' branch, tho advances authorised totalled 4239, representing £3,555,220. Tho Auckland applications totalled 1282, representing £1,031,135. Tho net profits were £9587, and tho cost of management was £9324, Ivung Is 3d per £IOO of tho capital employed. Advances to local authorities totalled eight, representing £5580. Tho net profit was £648,

In the public debt and sinking funds branch, tho advances totalled 117, involving £122,305. Tho total number of advances authorised was 7695, tho aggregate value being £7,335,570. GRANTING OF LOANS. QUESTION OF SUSPENSION. EFFECT OF EMPTY HOUSES. [BY TELEGRAPn. —PI'EC'IAL REPORTER. ] Friday. An invitation to declare unequivocally that Slate Advances loans would not be available for certain localities for a period of, say, six months, was made to tho Prime Minister, tho Hon. G. W. Forbes, by Mr. A. Harris (Reform— Waitcmata), during tho discussion on the State Advances Estimates in the House to-dav.

"Without exception applications for State Advances from the North Shore, Auckland, are being turned down, said Mr. Harris. "It really amountsto taking monoy under false pretences. The valuation fee accompanying the applications is passed on to the "Valuation Department, which makes the valuation, and the applications are turned down.

'1 know that because of the number of empty houses in some districts theie is not now the same need for building, and I agreo with that, but it would be much more straightforward if the depaitment would say that thero is not the same necessity for the Government to supply cheap money and that it will not accept applications for, say, six months. "No reason had been given for the refusal of applications. Tho security offered was all that could bo desired, but because thero were empty houses in adjacent streets the applications were declined. It would be fair to the public not to assure them that each case is considered on its merits, for at the present time there is no merit in any application. The department should return all valuation fees and advise applicants to apply later on." Tho Prime Minister said that applicants were certainly asked if they wore prepared to take over any of the vacant properties on the department's hands in their locality, and that was quite a reasonable thing to do. Ho said he could not agree that no applications were now being granted, as special circumstances were taken into account by the State Advances Board. If there was any possible chance of a loan being granted the board was only too willing to give every consideration to the application. That must be tho view of all members having dealings with the department. It had to be remembered, of course, that the board was tho guardian of tho public purso and had to see that reasonable security was available. A considerable amount had had to bo written off in seme districts, but, taken as a whole, tho Stato advances operations had been very successful.

Some complaint had been made tliat the State Advances Department and the Valuation Department were out of touch. In that connection, Mr. Forbes said that the Hon. E. A. Ransom, as Minister in cliargo of the Valuation Department, had recently had a conference with his officers and would doubtless be able to jive the House some information from the valuation point of view later in the session.