STATE ADVANCES

New Zealand Herald, Volume LXXIV, Issue 22893, 23 November 1937, Page 13

STATE ADVANCES

CHANGE IN CONTROL SOLDIER SETTLEMENTS ESTIMATE OF THE LOSSES [HY TELKGItAPH —SIMXIAT, HKI'OItTKH] WEI;LI NT. TON, Monday Steps to lie takei in the abolition of the State Advances Account and the Discharged Soldiers' Settlement Aeeeunt were outlined by the Minister of Finance, the Hon. AY. Nash, in moving the second reading of the Finance Bill in the House of Representatives to-night. "The legislation hearing, on this point," said the Minister, "arises from the establishment of the State Advances Corporation, which will result in the abolition of the old State Advances Department and in the abolition of the Discharged Soldiers' Settlement Account. All provisions of the Acts will remain, but the accounts will be abolished and the accountancy sections will be carried out by the corporation. Discharged Soldiers' Account "In the Discharged Soldiers' Settlement Account, when the accounts are finalised, it is anticipated that after £113,500,000 has been provided out of accumulated reserves the sum lost and estimated to bo lost will be approximately £6,820,000. This is duo to the fact that a large sum was expended in a comparatively short space of time on the purchase of land, causing tho price of land to appreciate beyond its real value." The Jit. Hon. G. AY. Forbes (Opposition —Hurunui) : Does that include the amount written off? "It is estimated that tho sum of £3,927,000 lias been written off to date," said Mr. Nash, "and further amounts are being written off under the Mortgagors and Lessees Rehabilitation Act. "It may surprise members to know that there lias been comparatively little loss in the original State Advances Account," continued Mr. Nash. "Certain sums have been written off out of profits and others out of capital, but reserves in the State Advances sinking funds and in other directions will be sufficient to reduce the total to a comparatively small amount." Assistance to Continue The Minister pointed out that lands reverting to the Government either under the original State Advances scheme or under the Discharged Soldiers' Settlement Act would be treated as Crown lands if they were unoccupied. Where houses were built 011 them, the lands would revert to the Housing Department and would be managed by the State Advances Corporation. "I want to make it clear," said the Minister, "that it is only tho account that is being abolished. The assistance to returned soldiers, which is wholly desirable will continue. The transfers to the State Advances Corporation and the Treasury will take place as from April 1 next year and this will allow ample time for the necessary adjustments to bo made."