UNDEVELOPED CROWN LANDS

Otago Witness, Issue 3972, 29 April 1930, Page 62

UNDEVELOPED CROWN LANDS

FINANCING IMPROVEMENTS.

A NEW FEATURE. WELLINGTON, April 2G. .he statement by the Alinistcr of Public Works (Mr E. A. Ransom) at Stratford this week regarding the new feature of financing improvements on undeveloped crown lands has aroused a good deal of interest, and the Minister said to-day thar om. question raised is the possibility or competitmn against the existing facilities of the State Advances Department. “ The two methods,” the Alinistcr explained, “ do not conflict. The scheme does not contemplate making advances in respect to improvements already carried out, but it is intended to encourage the bringing into productivity of undeveloped land. Under the amending legislation of last session introduced by the Minister of Lands any crown tenant who has just selected entirely unimproved crown or settlement land, or any crown tenant who has still such as area of undeveloped land in his holding as can, in the opinion of the Land Development Board, be classed as ‘ undeveloped land' may be granted an acvance out of the Land for Settlements fund. These advances are to be for improvements to be effected, such as fencing,, breaking in land, buildings, drainage etc., and shall be 90 per cent, of the estimates cost, but not exceeding £1250 in all, and will be payable by progress payments as the improvements are carried out.

Obviously,” Air Ransom added, “ the State Advances Office could not’ make advances in such cases, as it requires a security to be in existence for its loan, but the Lands Development Board does not require to have permanent improvements effected before it will authorise an advance as ic only lends for the purpose of encouraging the making of entirely ne" improvements. Though the system is apparently not as well known as it deserves, seeing that it strikes an entirely new departure in the encouraging of land utilisation, the board has already granted some advances on the basis I have mentioned, and it has taken the line that the amounts are to be secured by mortgage, which will have absolute priority over all other mortgages. It may, however, stand behind a State Advances mortgage or a mortgage to the crown. When dealing with applications in respect to partially developed sections the board would consider whether any such applies tion did not more fittingly come under the province of the State Advances Office, so that the new scheme in its operation does not conflict with the valuable organisation, but extends the scope of the Government’s capacity to help settlers in a very effective way.”