ADVANCES FOR HOMES

Taranaki Daily News, 6 June 1930, Page 15

ADVANCES FOR HOMES

■ “MON®Y : NOT WITHHELD" MINISTER’S REPLY TO PROTESTS ' One of tho Tequesta made to the Ooveniment on Wednesday by a deputation from tho Wellington branch of the Amalgamated Society of Carpenters and Joiners, was that the full amount of - loans applied for under the advances to workers’ scheme should be granted by the department. , • • Mr. J. M. Stobart, national secretary of th'e society, said he had beep informed of cases in which £lOOO had been applied for but only £BOO was granted. The result wan. that' the applicant worker had to procure; a second- mortgage to enable him jto complete his house, and the. Tate of interest for loans on second mortgage went as high as 12 per cent. In such cirsaimstances - the. worker could not meet his financial obligations, and his distress was increased when he became unemployed, That. was why so many workers were refusing State loans. The Minister of Lands, Hon. E. A. Ransom, said he thought the speaker was labouring under a misunderstanding. Applications had passed through his hands in which he knew that the . applicants considered their cases would bo stronger if they asked for a bit mor© than they wanted. Many loans had. been declined or reduced because of that. Mr. Ransom said he believed th© State Advances Department was interpreting the Act so far as workers were concerned quite correctly, and that it was not, endeavouring to reduce the amounts applied for as a general rule. Mr. W. Nash, M.P.: Would you eni- 1 phasise the point to the department that when the value is there they should advance up to 95 per cent, of th© value? The Minister asked if Mr. Nash could give definite instances where thepartment was not doing so. . ' Mr, Nash: There is no question about it. They are offering less than 95 per cent. ■ • Mr. Ransom said that in the past 18 months there had been a large increase . in the amount of money advance# 'through the'department for th© erec* tion of workers’ homos. The money’was no'if. being. w ; i£ t hheld for itjere had been a- ‘''p’hendiheiihl' Aum- advanced in the period -.he .referred to.