RURAL HOUSING

Te Awamutu Courier, Volume 60, Issue 4231, 15 January 1940, Page 5

RURAL HOUSING

RAGLAN COUNTY COUNCIL TO RAISE £50,000 APPROVAL OF STATE SCHEME In view of the attitude and discussion of the Waipa County Council at its December meeting, it is interesting to note that the Raglan Courttv Council on Friday decided to avail itself of the Government’s Rural Housing Scheme, provided the State accepts certain responsibilities regarding finance, mainly in connection with collecting rates on land affected by the scheme. It was decided to apply for a loan of £30,000 in order to make a start with building farmers’ dwellings. Mr H. W. Wilson, who presided, considered the scheme very desirable, but explained that a certain amount of vigilance would have to be exercised. That was fully realised by tjiy finance committee, which had approved of the proposal. Mr G. Brownlee-Sniith, county clerk, recalled the remarks of the Minister of Housing, the Hon. H. T. Armstrong, to the effect that the councils would get evqry assistance from the Department in administering the Act. The regulations fully bore out the Minister’s remarks. The clerk suggested that council fix a minimum application fee of £2/10/- and a maximum fee of £5. The applicant Could pay the fee in cash or have it added to his loan, but in view of the many concessions the Act allowed he considered the fee should be paid in cash. It would be payable only if the loan were granted. In addition to obtaining means of erecting a new building the farmer could make application for a loan to add to or adapt his present house. LIABILITY OF GROWN “The Act provides that the halfyeai’ly instalments on loans are to be regarded as a rate,” said Mr Brownlie-Smith. “The point was raised with the Minister as to the exaet liability of the State Advances Corporation for a State-mortgaged farm where the farmer was in arrears with his loan instalment. At present the Crown is liable only for special rates on abandoned properties. The Minister. stated that the Crown would accept full liability in those cases, and the Act would be amended to place this liability on the Government departments. “The Act and regulations to hand do not maike the Crown liable. Until this is done it would be dangerous for the council to lend monies to a farmer who had a State-mort-gaged property, unless his assets were very considerable, and his ability as a farmer very good,” the clerk continued. “There would still be the danger, however, that the farm might ‘be sold and the property ‘go back.’ In view of the Minister's promise, which was very definite, he could be approached to have the Act amended.

“From the council’s point of view this is the only serious flaw that can be seen in the Act. If the council decided to proceed with the loan, detail will be reduced to a minimum, although it is inevitable that there will be a large amount of office work,” stated Mr Brownlee-Smith. RATEPAYERS INTERESTED “From inquiries that have been made, it is evident that ratepayers are interested in the scheme, and a fairl” large loan would be required. Even with a poll of the ratepayers it takes anything up to six months to obtain the Loans Board’s sanction, and it is much cheaper to raise one large loan, than two qr three small ones. I do not think it necessary to detail the present public debt of the county, as any loan monies expended will be represented by a definite asset, and the council’s financial position is sufficiently strong to excuse my going into detail figures,” he said. Difficulties to be encountered as a result of applications from persons not in a financially sound position were forecast |t;y Mr H. Jiohnstone. Otherwise he considered the scheme sound. Mr'Cobourne considered the engineer should see that the timber in the buildings was durable. There was a grave danger of the houses not lasting over the term of the loan. Stating that the scheme was the best housing proposal made by he Government, Mr R. J. Glasgow urged the use of a Certain amount of discretion in applying it. First the loan money would have to be available before any definite undertaking could be given to applicants, and secondly the buildings would have to be erected where they were most required.