STATE ADVANCES

Otago Daily Times, Issue 23796, 1 May 1939, Page 13

STATE ADVANCES

REPORTED STOPPAGE OF LOANS EXPLANATION BY MINISTER Reports that the State Advances Department had declined to make further loans for houses to private citizens until May were denied by the Minister in Charge of State Advances (Mr H. T. Armstrong) in an interview with the Christchurch Press. “ The only restriction we have made is on the granting of loans for the purchase of existing houses,” said Mr Armstrong. “ That decision has probably given rise to the entirely erroneous report that all loans have been stopped. The urgent demand in this country is for homes, and. if advances are made for the purchases of existing houses, the amount available for the construction of new houses must be cut down by a corresponding amount, To give money from the available funds to purchase homes already occupied would_ be no contribution to the solving of the housing problem, Everyone will recognise that new homes are wanted.” The sum of £4.000,000 had been made available for building State rental houses and a further £2.000.000 was set aside for loans for private building, explained the Minister His aim was to raise the building of State houses to 5000 a vear so as to keen astride with the nahma! demand, and an amount of £0,000.000 would then be required wheo that figure of production was reached.

“The sum of £2,000.000 will, however, again be devoted to loans to persons who want their own homes.” said Mr Armstrong. “The raising of the limit of advance from 06 9-3 ner cent to ■ npr oent or higher is a special offer There must be some margin of security vet some people are so unreasonable as to become annoyed when the department declin to grant them 100 per cent, of the cost. Others have offered to nrovid" 0 1 0n and asked the department for the balance, vet thev hav” resource sometimes of £SOO It >s not too much to ask them f o use their full resources in obtaining an equity in their own homes.”