RURAL HOUSING

Waikato Times, Volume 126, Issue 21038, 14 February 1940, Page 4

RURAL HOUSING

ANOMALIES OF ACT

COUNTY COUNCIL’S QUESTIONS LOAN OF £IO,OOO CONTEMPLATED With provision having been made under the Rural Housing Act. 1939, for county councils to make finance available for certain building projects of farmers, apparent anomalies in the Act have been discovered by councils. Matters of this nature held th? attention of the Waikato Countv Council again yesterday. At the last meeting of the council, doubt had been expressed by members whether the council should make finance available to persons who had private means to finance their building schemes. It was considered that if finance were available under the Act in such cases, the person could benefit by securing county finance at a low rate of interest. while placing his private capital on the market. Each Case On Its Merits In a reply to a question along these lines, the State Advances Corporation stated that the intention of the Rural Housing Act was to provide funds to farmer apolicants who were in need of financial asisstance to carry out any building projects mentioned in the Act. Each case should be dealt with on its merits, having regard to the general interpretation of the Act. Todav. the council considered the reply did not clarify the doubt expressed in its query. Mr P. E Dingle said difficulty would arise if one county council made finance available to men with Drivate capital. and another decided not to. It was decided to communicate again with the State Advances Corporation requesting a specific answer to the council’s original query. Priority Of Charges During the past two or three months, stated a communication to the council from the New Zealand Counties’ Association, there had been considerable doubt among councils whether charges under the Rural Housing Act had priority over mortgages to the Crown. This matter had recently been, considered by the Government and it had been decided that charges under the provisions of the Rural Housing Act should take priority over all mortgages in favour of the Crown, or of any State Department, as though they were mortgages in favour of private individuals or companies. That would be subject, however, to the right of the Crown or of a State Department to object. The Waikato Council decided to ask the Government if it intended writing that decision into the Act. It was resolved to make application to the Local Government Loans Board for sanction to raise a loan of £IO,OOO in order to operate under the Rural Housing Act.