STATE ADVANCES

Southland Times, Issue 19335, 29 August 1924, Page 5

STATE ADVANCES

“AUCKLAND INSTITUTION.” MR MASSEY’S REJOINDER. (Our Parliamentary Reporter.) WELLINGTON, August 28. “That’s nonsense,” said the Prime Minister in reply to a question by Mr P. A. de la Perrelle (Awarua) as to whether the statement of Mr J. Begg, of Dunedin, that the State Advances Department was an Auckland institution, was correct. “Did the State Advances Department make a loan recently of £lO,OOO to the Christchurch City Council?” asked Mr Perrelle. The Prime Minister’s reply was inaudible. Mr Perrelle : if there is money to spare it should go to struggling farmers, many of whom have not got any satisfaction, in regard to their applications, which were made many months ago. The Prime Minister: I am ready to make a statement about State Advances capital, but I have not had an opportunity. The Leader of the Opposition: You had to-day. Mr Massey (warmly): You know very well The Speaker: Order!' Later Mr Massey referred to a statement by Mr J. Eadie (Balclutha) that the preponderance of advances in the Auckland province showed that the Department was being run largely for Auckland’s benefit. That, he said, was quite incorrect. The member assumed that advances were made in proportion to population. They were not so. There was not the slightest partisanship.

“The plain truth is,” the Premier added, “that the hon. member’s constituents are money lenders, not borrowers. They do not trouble the Department much, but when they do they get fair treatment. Mr Massey said that to-morrow, before the House went into Committee of supply, he would outline the changes which he proposed to make in the working of the Department, changes for the benefit of the man on the land, especially in view of the end of the Moratorium. He had hoped to bring them into effect on September 1, and to allot additional money for those who specially need it up to the end of the year at least, but without interfering with the existing system.