“CUPBOARD BARE.”

Star (Christchurch), Volume XLIV, Issue 256, 28 October 1931, Page 5

“CUPBOARD BARE.”

Position of State Advances Department. FINANCIAL PINCH. (Special to the “ Star.”) WELLINGTON, October 28. The financial cupboard of the State Advances Department is bare, and only in exceptional circumstances can applications for loans for new houses be approved, according to a statement made in the House yesterday by the Hon W. Downie Stewart, Minister in Charge of the State Advances Office. Answering numerous questions during consideration of the relevant Estimates, the Minister said that he had received a very full report . from the Super- , intendent of the • office showing how the department was endeavouring t o help both primary producer and worker mortgagors to overcome their , difficulties. Extensions of time were granted where this was warranted by the circumstances, and where explanations were not satisfactory special investigations were made. In some cases ’ where mortgagors had substantial equity in their own property the department granted an extension of the loan covering ‘arrears, spread over a period as long as thirty years, without ' any increase in the amount of the instalment. The policy of the department was to go to any lengths to prevent its properties from becoming or remaining vacant. The greatest difficulty in that respect had been experienced in Auckland, but within a very small margin those places were being occupied on some terms and for some length of time. It was in the interests of the department that the properties should be kept in occupation at all costs. Loans for Houses. Concerning fresh loans for homes, the Minister said that if there were . no money available it was better that the public should know of it so that the expense of having valuations made could be avoided. “ When I took over,” said Mr Stewart, “ I found that the cupboard was bare and I conferred with the Superintendent ” Mr F. Langstone (Labour, Waimarino): You must have been Old Mother Hubbard. The Minister: I don’t mind that. As I said, I conferred with the Superin-

tendent and suggested that it would, save prospective applicants a great deal of trouble if it were made known what the prospects were before lodging their applications. There is no fresh money going into the office this year. The only money available will be the repayments, which normally amount to approximately £2,000.000, but these are at present in arrear, and the instalments are not being repaid as in normal times. As far as these funds will go, the department is using them to assist those who are already mortgagors to remain in their properties. It is just as well to say frankly that in connection with applications for loans for new houses it will be feasible to approve them only in very exceptional circumstances. The point was made by the Minister that some time early next year the department would have to find funds towards the repayment of a small New Zealand loan of about £1,000,000, raised for the purposes of the department, which would then fall due. Some money was available for the repayment, and it was hoped that current repayments to the department would also help to meet the position.