STATE ADVANCES.

Star (Christchurch), Issue 16814, 17 August 1922, Page 5

STATE ADVANCES.

CONCENTRATION OF BUSINESS. (Special to the “ Star.”) WELLINGTON, August 16. An amendment to the State Advances Bill was introduced by Governor-Gen-eral’s message to-night. The Prime Minister explained that its object wa« to provide for certain transfers to the State Advances Department. The Government had been advancing considerable sums to the fruit industry for the provision of cold storage, also under the Repatriation Act—-in connection with which there would be some lose —a certain amount, too, to the fishing industry ajfd quite a large sum under the Housing Act. It was proposed to place these and future loans under the Advances Department. Mr Wilford asked where the money had come from in the past. Mr Massey replied that it had beer, paid out of loan money. The amendments were not proposed because there was any fault to find, but because it was better to have the accounts under one head than spread about. The officers of the Advances Department were < xperts in this particular business, and better results might be obtained with the matter placed in their hands. Another technical alteration wa© to establish a reserve fund of £25.000 in connection with the settlers’ branch of the Advances Office. It was further proposed to establish a reserve: fund tor the workers’ branch of £25.000 out of net profits of the. branch. Both those fund's would from time to time be invested and reinvested in advances to workers. A similar fund was to be established for the local authorities branch. Whenever the funds exceed £25.000. or such larger sum as the Gov-ernor-General by Order-■iuOouncil may direct, the exco-sp shall be paid into the Advances Office sinking fund account. The final clause provides for the net profits from the several branches being paid into sinking fund account after deduction of such amounts as may he required for paying into reserve fund and for repayment to the Consolidated Fund, as required by-the principal Act.