STATE LOANS

Sun (Auckland), Volume I, Issue 161, 28 September 1927, Page 7

STATE LOANS

AND THE BUILDER. THE BOARD’S OPERATIONS. Some weeks ago, we had the assurance of the Minister of Finance, Hon. tV. Downie Stewart, that no political influence was brought to bear on the State Advances Board in connection with the granting of loans. Cases of special hardship, said the Minister, Were dealt with expeditiously, bit if the board had reason to believe that applications were sent m to secure early place in the queue, with the object of gambling with State money, the board might well hold such applications up for 12 months. Th«* crux of the question, however, is not the granting or refusing of loans. The trouble begins after the loan has been granted. Delay in payment s»ems to be the chief factor in criticism of the operations of the board. However great the need for investigation of each application, there should be no occasion for the present protracted lapse of time between the granting of the application, and the payment, by the board, states the “Architectural and Building Review” editorially. Many builders themselves tinanc-; the building of houses once the applications of their clients have been approved, but they are forced into an unnecessary, and in some cases an inconvenient situation by the failure of the board to meet progress payments. Discounts and other allowances are only obtained by payment of account on doe date, and if through lack cf sufficient funds to meet accounts, discounts are lost, a serious situation arises, and one which frequently has a direct bearing on the success or failure of a contract. The uncertainty of the position imposes a penalty on many a worthy contractor, and has crippled enterprise by limiting State advances work to firms capable of standing up to possible financial strain. A solution of the problem would be the allocation of progress payments immediately the building was begun, and, provided that the terms of the agreement were complied with, payment made on presentation of certificate. The recent conference of the Builders* Federation passed a resolution dealing with this question, urging the Government to make prompt progress payments in connection with the erection of workers* dwellings under the State Advances Department. The fact that the federation was forced by the experience of its members to take such action indicates the seriousness of the position. The federation, however did not go far enough. It may not have been politic, but it certainly would have been reasonable to demand prompt payment under the conditions of the loan. No private concern would dare court disfavour among its clientele by failure to honour even the implied terms of its agreements. A Government is looked to to set a standard of commercial morality, and it is not too little to demand that a palpable wrong to the comme'xial classes should be righted, particularly when the wrong has no need to exist. Two other resolutions, dealing with questions of urgency, were also passed by the conference, one affecting the Government directly, and the other the Government and the architect. The lirst was “that representations be made to the Government urging the prompt return of deposits made with tenders, immediately the bond in connection with a contract has been executed.” The second, ‘That steps be taken to ensure that deposits on all contracts bear interest at bank rate for the period during which such deposits are retained.** # . . Again, it must be said that it is evident that ceiiain obvious defaults ha\e been or are being made by the parties responsible for the calling of tenders. The Builders’ Federation has made a most tactful approach to each of several verv vexed questions, hut the question should not be allowed to rest there. PublTcity should be given to the replies received, and in any case where the reply is not satisfactory, the rersons ofFered should be mace know;i.

An up to-date hostess seats he. dinner guests at a table which i: lighted bv slim, coloured candles 2f in height* and tapering to a gracefu point. Fragile shades that need constant readjustment are not necessar? on these, nor are they often flttei upon candles of such unusual proportions.