STATE ADVANCES.

Otago Witness, Issue 3828, 26 July 1927, Page 20

STATE ADVANCES.

EXTRAORDINARY DEMANDS. WELDINGTON, July 20. Whenever the opportunity arise': members of the House of Representatives clamour for a larger share of State advances in the interests of their constituents. To-day, being Question Day, gave an opportunity for harrying the Government on this question. From t’ c demands that are being and have been made one would think that it was the duty of the State to find the money for b: iding almost all the houses in the Dominion that arc still to be built. The complaints made that the pursestrings were not being sufficiently unloosed drew a pertinent reply from Mr W. Downie Stewart in his capacity of Minister of Finance. Tic said it was impossible for this country to go on annually borrowing twice the amount it was borrowing now. It would have to borrow twice the present annual amount if the Government w to be the only housebuilder for ti e workers and the only financier for the farmers. He could not see that the Government would be justified in undertaking the whole responsibility for the whole population, and so far as he was concerned if the Government had to accept th responsibility it would have to find someone else other than himself to act as ? mister of Finance. He admitted that there was an enormous pressure from both sides of the House so far as members were concerned insofar as the interests of their constituents were concerned, but he could assure them that there was no discrimination in dealing with the applications, and that he received as many complaints from one side of the House as from the other. As to what chance there was of further money he had already made it clear that the Treasury was on the point of issuing a prospectus in respect of a bond issued under the rural advances scheme. If the bonds were found to be a successful means of raising money for farmers there would be far more money available for housing. The suggestion had been made that the rate of interest on Government debentures should be raised in order to draw money into Government investments. Ho did not, however, favour this until it could be seen whether the issue of bonds under the rural credits scheme was a success. If the rate on Government debentures were raised at this juncture and the issue of bonds was not a success, the farmers might complain that the Government had spoilt the issue of rural bonds. In view of the proposed issue of bonds he had not felt justified in informing the applicants for loans for housing that there was no hope of their applications being considered for an indefinite term. He had suggested to Cabinet some time ago that a notice to applicants should be issued explaining how long they must wait, but as the rural bonds would be tested soon it was thought better to wait and see if that relieved the position. It was hoped to proceed with the issue of the bonds almost immediately the prospectus was drawn up. and he was discussing the exact terms on which the marketshould be tried.