ADVANCES CORPORATION

Poverty Bay Herald, Volume LXIII, Issue 19028, 30 May 1936, Page 8

ADVANCES CORPORATION

CRITICISM OF MEASURE DTFFJCUETIES FORESEEN SECOND UFA DING PASSED (Per Press Association. 3 WELLINGTON, List night. Continuing the discussion in the House of Representatives on the State Advances Corporation Bill, Mr. W. JBro.adfoot (Nat., Waitomo) said the Minister had power to meddle witn the activities of the hoard at any lime. It was the dutv of Parliament to state its policy and leave it to experts to carrv it' out. The bill cast on the Minister a responsibility that would give him a great deal of trouble, as lu> would have to be the arbitei in the case of every man who was disappointed with his application.

Mr. Broad toot also spoke of the ttuverse effect overseas of piling up the Dominion’s national debt. tue question of helping industries was very desirable. but it would have to lie done with a great deal of care. He also urged that greater provision should lie"made for the payment of rates on properities taken over by the corporat ion. Mr. i). Barnes (Lain, Waitaki) said the farmer needed long-term loans to enable him to plan ahead. 1 ii\ate interests wt-ie inclined to look upon rural lands as bad investments, and it was time that something was done to bring rural lands to the level of gilt-edged securities. lie felt that something should be done to coordinate investments in an investment, authority. In the past the mortgage market had been definitely unorganised. The last Government had attempted to organise the market, but the present bill went much further than had previously been attempted. • LOANS PREJUDICED Mr. W. A. Bodkin (Nat., Waitaki) said that it the Minister wanted to control interest rates in New Zealand lie would have to so order the finances of the country as to make gilt-edged securities of the State acceptable, to the moneylending community, and if he were going to Hood the market with all sorts of wild-cat schemes he was going to put up the price he would have to pay. He would make his securities unacceptable to the local and overseas investor. New Zealand owed £280,000,000 with no prospect of redeeming it in the next 50 or 100 years, and it had to be renewed from time to time, and the question would be what, rate they would have to pay upon renewal? Mr. 11. M. Christie (Lab., Waipawa) said that the whole question facing the country seemed to lie bound up in land values which had a most important bearing on the situation. It hud been said that the bill was not much different from the old measure, and it was surprising that the Opposition should go to any length to criticise it. If that were the case the State Advances Department had been most beneficial to the country. Private enterprise had never been capable of dealing with the housing position, and the last Government had had to introduce legislation to protect the mortgagor against private lenders. Mr. 11. G. Dickie (Nat., Pa tea) said the bill would relieve Hie position us far as housing was concerned, but he did not think the Minister would get money at J per cent. It was not always easy to raise money at low rates, and Yates varied considerably. He was quite ,satisfied that as far as tlie

bill was concerned, had the Opposition remained on the Treasury benches something of the sort would have been done.

MINISTER IN REPLY The Hon. W. Nash, in reply, said that if persons could not build houses, the Government would build houses for them at rentals in the vicinity of that which they would be able to par, and they would he administered by the .State Advances Corporation. _ The money would also be made available to local authorities at a reasonable rate to build houses for the people, and those authorities would administer them. Political influence would not be able to interfere with the board. It had been said that the bill was conservative. He would be glad if in .12 months’ time the same would be said.

Some Opposition members had referred to the recent loan in support of the contention that the Government, was not. in favour at Home, said the Minister, but members who used that type of tactics put any political advantage that might be given in front of the goodwill of the Dominion at large. He pointed out that the underwriters gave the Government the same terms exactly as they gave the previous Government. That typo of argument was wrong in its entirety and harmful in its effects. The Miiter said there might have to be some sort of salary limitation to the granting of loans. ■ The second reading was carried.

The Rt. Hon. M. J. Savage said he hoped to be able to arrange for the short title discussion on the bill to be broadcast on Tuesday evening. That would give many members the opportunity to be heard. The House then rose.