CO-ORDINATION PLANNED

Poverty Bay Herald, Volume LXIII, Issue 19134, 1 October 1936, Page 12

CO-ORDINATION PLANNED

STATE LOAN ACTIVITIES ADVANCES TO SOI/DIERS CORPORAT lON CONTROL (Per Press Association.) WELLINGTON, last night, As a further step in the co-ordination of State lending, an Uvdcr-in-Couneil had Leon issued authorising the transfer to the State Advances Corporation oi mortgages a I present, administered by the Lands and Survey Department undot the provisions of the Discharged Soldiers Settlement Act, said the Minister for

tiio Hon. W. Nash, to-day, dis tile progress oi the Flute Ad

vauccs Corporation. .Mr. Nash added that to facilitate the transfer and to avoid inconvenience to

mortgagors, it had linen arranged that these loans shall be taken over in dis-

lriots in the following sequence: Wellington district, October i, 1936: Canterbury, November 1: Gisborne and Hawke’s Bay, November 1 ; Taranaki, December 1; Auckland. February 1, .937: Southland, .March 1: Otago. April 1; Marlborough, Nelson, and Westland, May 1.

In order to meet its wider sphere of operations the under-mentioned alterations and additions to the personnel of the head oilier staff of the Corporation

:ad been arranged: Mr. F. K. Mitchell lias been appointed assistant manager; Ir. K. .1. Uaverhill has been appointed eo ret ary ; Mr. 11. Robertson lias, been ipointed chief accountant; Mr. J. F. Quinn, who, until recently held the position of Commissioner of Crown Lands in Christchurch, has been appointed to act as supervisor of discharged soldier settlement mortgages at the head otiice of the Corporation ; and Mr. C. E. Lough has been appointed chief properly supervisor at the head office. SY.M PAT MET It * THE ATM ENT As a. preliminary step to the taking over of additional business, the board of management of the corporation has arranged for the establishment of eight I iraneh offices as above and (lie appointment of district Held stall’s to assist- in the administration of rural securities. The valuations will be. comprehensive, with special regard' to the productive capacity, and advice to fanners will be tendered from the angle of the joint interests of both parties. Ex-soldier mortgagors need have no apprehension that the change of control will react, to their disadvantage. A majority of the senior ■field officers are returned 1 soldiers, and mortgagors can, therefore, confidently expect sympathetic and helpful advice from them. In addition io the transfer oi the mortgage accounts from the Lands and Purvey Department, it is proposed, at a later stage. 1 lint the St-atc Advances Corporation should take control ol the work at present under administration by the Rural Intermediate Credit Board. It is hoped that, by lho end of the present, financial year, some definite steps in this direction, will ho practicable.

As soon as the Discharged Soldiers Settlement mortgages have been transferred to the corporation, the mortgages will he eligible for variation in terms of section 39 of the State Advances Corporation Act, which permits of a reduction of the rate of interest to the new lending rate of the corporation, which at present, is per cent. There is only one condition attachable, to this concession, viz.., that the. borrower will contribute 2 per cent to the general reserve fund of the corporation. RESTRICTION ON HOUSING

Referring lo the corporation’s new lending business,-the Minister said that the board of management had decided that no objection will be raised if the total amount of mortgages is compatible with the value of the .security as determined bv the board. In considering applications for advances on rural securities, the hoard of management, in some eases, deems it wise, in the interests of the farmer, to embody in a. mortgage, a, covenant not io encumber stock and chattels, without the. consent, of the corporal ion. Experience has shorn, t hat, in many eases, had farmers' difficulties keen known at an earlier stage, much ol the later troubles could have been a voided.

Referring Io the proposals in respect >f borne, building, (lie board of management points out that., judging by the applications that bad been received by .ho Rtato Advances ■Corporation', there arc a large number of people requiring housing accommodation who will need to lie provided for by the Government or by local bodies under the Housing Act. As already indicated, it is not intended to make advances or mortgage to prospective home builders who are unable to make a reasonably substantial deposit, towards the cost of Iho home and it is deserving people with limited funds who will he eligible for enancies of houses to be built by the Government.