DISCHARGED SOLDIERS

Waikato Times, Volume 114, Issue 19118, 1 December 1933, Page 6

DISCHARGED SOLDIERS

SETTLEMENT ACCOUNT. HYPOTHECATION OF RESERVES. QUESTIONS IN HOUSE. (By Telegraph. — Press Association.) WELLINGTON, Friday. Discussing the vote for the Discharged Soldiers’ Settlement Account in the House of Representatives today, Mr. F. Langstone (Labour —Waimarino) asked what was the amount being paid to the hanks as a result of the hypothecation of reserves. Mr. Langstone also asked whether the money in the fund was returning sufficient interest to meet obligations to the banks. Mr. A. J. Stallworthy (Independent —Eden) asked whether there was a possibility of the actual management of the settlement passing to the hanks. _ . The Minister of Finance, the Hon. J. G. Coates, said the money had been advanced to the Government on the security of the reserve fund, and when It was convenient for the country it would be repaid. Mr. Langstone: llow much has been advanced to the Government? Mr. Coates replied that £2,500,000 had been advanced last year, and £2,000,000 this year, making £4,500,000 altogether. It was a convenient way of raising money without calling on the taxpayer, and the money would be paid back either by an internal loan or by some other method when the finances of the country were buoyant again. The interest being paid was five per cent. Mr. Langstone: How much is In the reserve account? Mr. Coates said the original value of the securities had been about £13,000,000, but some of them had been written cfown. There was no danger of the banks gaining control of the settlements, continued the Minister, which were perfectly safe as far as the occupiers of the properties were concerned. The Minister in Charge for Discharged Soldiers’ SettTement, the Hon. E. A. Ransom, said that interest on discharged soldiers’ settlement loans amounted to £1,103,750 last financial year. There was no danger of the security of the fund being jeopardised by the hypothecation of reserves. Consideration of Cases. Replying to other points raised the Minister said if members could show him individual cases of where Crown tenants under the Discharged Soldiers’ Settlement Act had not received a fair run, lie would give an undertaking to reinstate them, either on the same farm or some other. He would also suggest that if Crown tenants still on a farm felt they were not getting a fair deal they should make application to the Mortgagors’ Relief Committee. The Government would be prepared to stand by a recommendation of that committee. “This is not the time when we can reasonably fix a valuation for the next 21 years,” said the Minister, replying to a request by Mr. A. M. Samuel (Independent —Thames), for a revaluation of settlement lands. The markets are so unstable that it would not be possible to arrive at a sound basis on which to fix the valuation,” continued the Minister, "However, I can give an assurance that the Government intends as soon as prices are reasonably stabilised to deal with the question of revaluation.” The vote was passed.