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1945 NEW ZEALAND

RURAL INTERMEDIATE CREDIT BOARD REPORT FOR YEAR ENDED 30th JUNE, 1945

Presented to both Houses of the General Assembly in accordance with Section 76 of the Rural Intermediate Credit Act, 1927

Wellington, 19th November, 1945. The Hon. the Minister of Finance. We have pleasure in submitting a report on the business transacted by this Board for the year ended 30th June, 1945, as required by section 76 of the Rural Intermediate Credit Act, 1927. The Rural Intermediate Credit system, which was established in 1927, was introduced for the purpose of enabling farmers to obtain at favourable rates of interest credit facilities for periods intermediate between short-term seasonal finance and long-term loans upon land securities. Under this system loans are provided for terms up to five years, generally with provision for the repayment of the loan-moneys by annual instalments. Finance required on a yearly basis may be arranged with the Board by discounting bills or promissory notes. Local administration is provided for by district boards and associations comprised mainly of farmers. Loan finance may be obtained by three methods (a) By borrowing through Co-operative Rural Intermediate Credit Associations : (b) By a direct loan from the Board : (c) By arranging with the Board for the discounting of bills or promissory notes. During the period of eighteen years that the Board has been in operation it has made available, by way of loans and discounting, advances which, in total, exceed £1,797,400. In recent years the volume of lending business transacted by the Board has been on a limited scale, due principally to the favourable credit position within the Dominion and the restricted amount of developmental and maintenance work which could be undertaken by farmers under war conditions. Over the past year there has been an increase in the amount of direct loans by the Board, but the bulk of this new business is comprised of loans granted to ex-servicemen of the present war who have been eligible for assistance under the Government's rehabilitation scheme. Otherwise there has been no substantial variation in turnover as compared with the new business handled in previous years. The amalgamation of the Rural Intermediate Credit system with that of the State Advances Corporation is under consideration. The following is a summary of business transacted during the year ended the 30th June, 1945 CO-OPERATIVE RURAL INTERMEDIATE CREDIT ASSOCIATIONS There are now fourteen active associations, and three other associations are in course of liquidation. The loans made through this channel during the year amounted to £31,008, and at the close of the year there were 436 loans current for an aggregate amount of £69,706. DIRECT LOANS FROM BOARD Due to the increase in the number of rehabilitation loans granted to ex-servicemen, the volume of business transacted in this section showed a considerable increase over loans granted in the year ended 30th June, 1944. During the present year loans totalling £44,173 were granted, and at the close of the year 84 loans were current for an aggregate amount of £46,154.