STATE ADVANCES

New Zealand Times, Volume L, Issue 11648, 12 October 1923, Page 5

STATE ADVANCES

AN IMPORTANT STATEMENT “IMMENSE TASK FACING THE DEPARTMENT.” OVER £7,000.000 WANTED. An important statement with regard try the work of the Slat*? Advances Office v.-fles made hy the,Hon. W, Downie Stewart, the Minister in charge, in the course of an interview with a • Times” representative yesterday. “UNPRECEDENTED.” “The work which the State Advances Ofilce i« called on to do at present is unprecedented,” said Mr Stewart, “and it is quite impossible to cope with the applications received as quickly as desired by those applying for loans, even though the utmost expedition _is shown. The staff has been substantially increased to Overtake the extra business, but over one hundred applications for loans are received on the average every day. Complaints about delay can hardly be well founded when it is stated that payments are being made out to borrowers at an average rate of £IIO,OOO per week, and this amount tends to increase. A few further figures will indicate the immense task with which the department is faced. During the last two months over 6000 applications have been received, and the needs of the applicants exceeded £7,000,000. The loans authorised for the last six months amounted to £4,025.607, whilst the amount actually paid over amounted to almost £2.500,000. LOANS FOR HOUSES. “With reference to loans for the same period for housing purposes,” added the Minister, “over £ooo,ooo has been paid for the purpose of erecting homes, whilst over £600,000 has been advanced for the purchase of houses already ejected. In addition, the sum of £34,200 ha 3 been advanced to local bedies for the purpose of erecting workers’ dwellings. For the six months ending September last the large sum of about £BOO,OOO has been paid over for the purpose of repaying existing mortgages. There are also other advances made on chattel securities, etc. PATIENCE URGED. “It is obvious that if applicants will only exercise patience, and recognise the pressure of work under which the department is carrying oi\ ? in due course their applications will be dealt with. But it is impossible to deal with every application immediately on its receipt, as the valuers of the Valuation Department and the officers of the State Advances Office are working under the utmost pressure, even although the staff has been enlarged in both departments.

“All applications, including those from outlying parts, will in due course receive consideration. But the more borrowers try to rush matters the more inflation will tend to take place in land and building costs, and their best nterests will be served if they will await their turn with as much patience as possible.”

“UNWARRANTABLE RISK ”

HOUSES BUILT IX ADVANCE OF LOANS.

In answer to a question, the Minister said: ‘‘l am advised that some applicants for loans, in their anxiety ts fet their houses built, are entering, or ave actually entered upon contracts, and that in some cases the houses are even already built, before they have been notified, that any loan has been granted. “If this is so, these men are taking an unwarrantable risk, as there is ho guarantee that their loans will he approved by the board, or that, if approved, they will necessarily get the full amount asked for. That depends, of course, upon the report made by the department’s valuers.”