CASE FOR ACTION

New Zealand Herald, Volume LXXIII, Issue 22431, 29 May 1936, Page 13

CASE FOR ACTION

IIISTOEY OP SYSTEM

THE PROVISION OF HOMES BENEFITS EMPHASISED [BY JELEGRAFH —SPECIAL REPORTER] WELLINGTON, Thursday The reasons for the Government's decision to make the Mortgage Corporation a purely State institution were outlined bv the Minister of Finance, Hon. W. Nash, when moving the second reading of the State Advances Corporation Bill in the House of Representatives to-night. "We are taking this stop," said Mr. Nash, "because we believe that the Government can do the work better than any private or semi-private or semi-State institution. The spirit that animates a board of directors faced with the necessity of making a dividend is very much different from that which animates a body, whose sole object is to render service. "I believe that the State Advances Act introduced by Sir Joseph Ward in 1891 was the greatest single event from a monetary point of view that has taken place in politics in this country. Nothing that has occurred in the Dominion has given greater advantages provided more homes or led to a greater development of the land. Millions Advanced "Since the passing of that Act there has been something like £70,000,000 recorded as advances by the department and £34,000.000 has been repaid. The sum of £41,000,000 is still owing and while the evidence of the past few years is such that the corporation must make provision for a contingent liability of £8,900,000, I am saying that the corporation will lose less than any private organisation would in similar circumstances.

"While it was operating the State Advances Department reduced interest rates to 4£ per cent. In addition, it saved 11 per cent to 2 per cent right through the years, not only on the money advanced by the department, but on all the moneys advanced in this country. The saving of the State Advances Department to New Zealand over the years exceeds £20,000,000. as the department has to a certain extent controlled interest rates for mortgages provided by other interests."

In 1909, the Minister continued, the department started to make loans to local bodies. In 1919 the Housing Act was passed, and was administered by the superintendent of the State Advances Department. That had not been successful in certain directions, but under the present bill the State Advances Corporation was empowered to take over housing. Tribute to Mr. Massey

The credit for the success of tho State advances system was due in the first place to Sir Joseph Ward and next to Mr. W. F. Massey, who had done the thine most criticised of all by deciding to advance up to 95 per cent of the value of the security. He had certainly created difficulties which had become apparent during the recent depression period, but he had built homes.

Mr. Massey's system had been abused in many cases, but in the Minister's electorate alone there were thousands of homes providing the occupants with an environment which would have been impossible had the people been faced with the necessity of saving the money necessary to build those homes, said Mr. Nash. Mr. Massey's 95 per cent advances had occasioned much of the losses of the department, but it would be worth while following the same system again if it would build homes. The houses were now there and they would not have been there but for those liberal advances.

TRANSPORT BILL DEBATE IN COUNCIL NOTICE OF AMENDMENTS fBY TELEGRAPH —PRESS ASSOCIATION] WEL I<IXG TON, Thursd »y The second reading of the Transport Licensing Amendment Bill was moved in tho Legislative Council this afternoon by the leader of the Council, Hon. M. Fagan, who gave notice of his intention to move several amendments. These generally are machinery amendments and tighten up procedure on appeal from decisions of a licensing authority in the way of supplying the Minister with full details relevant to any appeal. Mr. Fagan said that an amendment would bo made with the object of making it clear that a licensing authority must record the reasons for its decisions, and it would also be provided that there was to be available to any member of the public on request a certified copy of a licensing authority's decisions and reasons for them. It would also be provided that all verbal evidence taken before licensing authorities was (o be on oath. At present the bill made no such requirement, and experience had indicated that in some eases evidence was obviously incorrect to the knowledge of the witness. If a licensing authority's decision was questioned and an appeal to the Minister made it was essential that the evidence should be correct, as it would be reviewed by the Minister. Mr. Fagan stressed the importance of the transport problem in the world to-day, and drew attention to tho dangers existing on the roads. In Great Britain 155 persons were killed weekly and 5000 were maimed. If the present average were continued for the next two years the total accidents, fatal and otherwise, would equal the British loss of life in the Great War. It was held generally that the primary cause of motor accidents was chaotic conditions ind complete lack of control.

The debate was adjourned and the Council rose until to-morrow morning