STATE ADVANCES

Southland Times, Issue 22507, 15 February 1935, Page 8

STATE ADVANCES

MORTGAGORS PUZZLED EFFECT OF CORPORATION MINISTER’S ASSURANCE (From Our Parliamentary Reporter.) Wellington, February 14. Since the depression and consequent unemployment of a number of citizens who normally were assured of a steady income allowing them to meet their commitments regularly, many State mortgagors, in the cities particularly, have been unable to keep up their payments of interest and principal. Although the State Advances Department has extended lenient treatment to those in difficulties, through no fault of their own, there have been some evictions. Since the proposal for the formation of the Mortgage Corporation of New Zealand has been put forward, there has been some uncertainty as to what the future may hold in store for occupants of State advances houses. The question has received the consideration of the Government and during the second reading of the Bill in the House, it is expected that an indication will be given of what is intended. It is understood that there will be a provision that nobody may be evicted from houses at present mortgaged to the State without the consent of the Minister of Finance. This will ensure that each case will be considered on its merits, and should go a long way towards removing any apprehension that exists at present. It is also understood that the positions of those at present engaged on the staffs of State lending institutions will in no way be jeopardized as the results of the establishment of the Mortgage Corporation. _____