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decisions based on the merits of each proposition submitted. Applications which involve unusual features, such as doubtful economic farming propositions requiring specialized knowledge, often necessitate detailed investigation and consultation with the local Committees appointed for the purpose. In general, however, the work has been handled smoothly and expeditiously. A steady flow of rehabilitation loan applications is being experienced at all Branches of the Corporation. Full co-operation has been forthcoming, as in the past, from the various Departments and Committees associated in this work, and it is pleasing to note that the large majority of men assisted have taken full advantage of the help given to them, and in these cases the purpose of rehabilitation can be said to have been achieved. It is, of course, inevitable that in a scheme of such magnitude a certain number will be unsuccessful, but the percentage of failures has so far been low. This is illustrated by the table given later. The losses have in the main resulted from failures in businesses established with rehabilitation loans, and have mostly arisen as a result of the ex-serviceman being insufficiently experienced in the line of business he elected to follow, or of his being temperamentally unsuited to business management. Many of them, whilst good workers and tradesmen, revealed lack of training and experience to the degree required to ensure their success as businessmen on their own account. The Corporation has continued to help and advise, and has not hesitated to seek the assistance, and gladly acknowledges the help, of experienced men in the commercial field. As in past reports, a list is submitted hereunder illustrating in a condensed form the various types of business for which rehabilitation loans have been authorized. It does not purport to be a complete classification, and we are satisfied that a full, survey would show that more than 250 different types of business have already been handled. It is interesting to note, however, that the various types of transport still appear to have a strong attraction. Classification of Business Loan Authorizations Number. Total. Number. Total. £ £ Butchery .. •• ..188 154,427 Taxi, service ear, and transport 1,652 905,135 Grocery and general store .. 616 511,484 Carrier and mail contractor .. 1,249 925,062 Bakery, dairy, refreshment-rooms 401 276,823 Hairdresser and tobacconist .. 112 55,940 Milk-round .. .. ..272 216,430 Bootmaker .. .. 149 46,222 Building trades .. ..697 357,063 Painter and paperhanger .. 235 80,584 Mechanical repairs .. ..418 275,542 Launch and fishing gear .. 11l 73,292 Manufacturing businesses .. 291 192,288 Agricultural contractors .. 428 309,641 Stationery and fancy goods .. 114 83,564 Chemist .. .. .. 28 ;?8,230 Poultry, &c. .. -. •• 42 26,713 Miscellaneous .. .. 674 *161,169 Professional equipment .. 809 369,066 - Radio dealers and electricians .. 202 109,628 . Total to 31st March, 1950 8,727 £5,493,961 Hotel and guest-house .. 39 35,658 _ - The great majority of rehabilitation borrowers are meeting their obligations satisfactorily, but the Board feels it incumbent upon it to again draw attention to the high percentage of furniture and tools of trade accounts in arrear. Every effort is made to bring these accounts up to date, but the fact that these loans are interest free seems to be considered sufficient reason for non-payment. Had they carried an interest charge, to be waived only upon prompt payment of instalments as they fell due, a better record would have been disclosed. The Board finds it very difficult to believe that these arrears are justified in a time of full employment. The work involved in communicating with defaulting borrowers and in subsequent interviews is uneconomic and takes up the time of officers who could well be engaged on more productive work.

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