N.Z. PARLIAMENT.

Waikato Times, Volume 106, Issue 17836, 8 October 1929, Page 8

N.Z. PARLIAMENT.

STATE ADVANCES URGED

REDUCTION OF INTEREST. DEPARTMENT MAKES PROFIT. (By Telegraph.—Press Association*.) WELLINGTON, Monday. The report of the State Advances Office was discussed in the House this evening. Mr A. Hamilton (Reform— Wallace) said the department in its three branches State Advances. Rural Advances and Workers’ Advances, had made a profit of approximately £50.000. and in view of that profit tie suggested the Government should show some leniency toward borrowers. It might lie possible to reduce tlie interest rale on loans to settleis to the same level as that on advances to workers, lie said State Advances money was now nearly die dearest money that farmers borrowed. Mr' P. Fraser (Labour —Wellington Central) suggested that the time had come for the Government and the department- to give serious consideration to a reduction of interest, rates on loans to workers and settlers. He said it had been a most gratifying feature of the present, administratipn that, so many applications for loans bad been granted, hut it was a disquieting feature that the amount granted per application was frequently short of requirements. He urged that- Hie full amount possible under Hie law should lie granted. Mr D. Jones (Reform —Mid-Can-terbury) contended Ihat Hie Government was lending money at a profit in London, when according to its promise it should lie lending it in New Zealand at 4J per cent. Instead of leading tlie way in reducing the interest rate Hie Government was keep-

ing it up. Mr W. L. 'Martin (Labour —Raglan) believed it should he possible to advance money at a cheaper rate. Mr J. S. Fletcher (Government — Grey Lynn) expressed the view that it would be a more satisfactory proposition for the Government to advance up to 95 per cent, of the security than only 80 per cent., because It was tlie higher rate that had to be paid on a second mortgage for the remaining amount that presented the danger of disaster to llu Inn rower.

The Leader of the Opposition, Mr Coales, discussed the issue of rural intermediate credit bonds, slating that while his Government had given every assistance in the matter, lie declined to admit that llicy were Slate guaranteed. The report was talked out.