BUILDERS' CREDIT.

Press, Volume LXVII, Issue 20178, 5 March 1931, Page 4

BUILDERS' CREDIT.

QUESTION OF CONTROL. ASSOCIATION TO BE FORMED. For the purpose of determining the activities of people who do not honour their oredit obligations within a rear sonable time, the principal suppliers of building materials in Christchurch in* tend to and/ commencing an May Ist, a scheme for controlling the credit facilities in the building trade will come into operation. An (Association for the purpose of securing information regarding details of the financial operations of people dealing on a credit basis with merchants and suppliers, is to be formed. • Three Grades. , All Christchurch builders will be graded into three classes, as follows: (a) Prompt payers and those whose credit standing is known to be undoubted. (b) Any builder whose account or part thereof for goods or materials supplied has remained unpaid for more than three and less than five months, without having made satisfactory arrangements with all his. creditors. (c) Any builder whose account or part thereof for goods or materials supi plied has remained unpaid for five { months or more without having made* : satisfactory arrangements with all his creditors. When the gradings are completed credit will be stopped immediately in all cases where builders are graded 0.1 Each: builder so graded will be called upon by the Association to furnish a full certified statement of his financial position. If he refuses to doso within 7 days of receiving notice, a meet' ing of his creditors will be called to decide what action shall be taken. Scheme Explained. Mr J. J, D. Sullivan, managing director of the . New Zealand National Creditmen's Association, and organiser of the scheme, stated yesterday that the merchants had .decided to- take .the i step only after very full consideration. They did not intend to harass the man | who honestly intended to get ahead, but to extend credit, facilities to all wiose operations warranted it. It would be in the interests of many builders, to /state their position frankly to the Association and the system would help many who showed a tendency to ,drift. It was not the Association 'a intention to force men into 'bankruptcy, but rather to save them 'from! that procedure by placing a definite limit to credit that might be obtained. J An executive, to act is conjunction with' the Association in the control p£ tjhe scheme had been appointed, comprising representatives of- each section 16t builders' suppliers in the City, said Mr ; Sullivan. The scheme, had the endorse' Stent• of * the Canterbury Builders' Association. ■ ')j. ' ' , The* matter will be h at next Tuesday's meeting of the Canterbury Builders.' Air BuJlivpjl f will give an address on t)ie scheme. i