Rehabilitation Loans Boosted Economy

Press, Volume CVI, Issue 31092, 22 June 1966, Page 7

Rehabilitation Loans Boosted Economy

The post-war rehabilitation scheme for returned servicemen had given a greater boost to the national economy than any other single project in New Zealand’s history, the Minister of Rehabilitation (Mr Kinsella) said yesterday.

As a purely business enter-prise—-lending money at low interest rates—the scheme had paid for itself 10 or 11 times in terms of prosperity. For a total outlay of £250 million, the scheme had

had almost without exception honoured their commitments. “The arrears and foreclosures have been so small that they are difficult to record on a percentage basis. About .01 per cent would be the closest figure,” he said.

financed business, farming and housing projects now conservatively estimated to be worth £2500 million.

Mr Kinsella came to Christchurch yesterday to convey the Government's thanks to the District Rehabilitation Loans Committee for its work, aH honorary, in helping with the resettlement of servicemen.

It had been responsible for tremendous urban development in all New Zealand cities and provided thousands of tradesmen for the building industry. “The most satisfactory aspect of the scheme is that almost without exception, the men who took advantage of it prospered personally,” he said.

The committee—Mr J. R. Hawkes, Christchurch manager of the State Advances Corporation, chairman; Mr E. B. Pyne, district rehabilitation officer; and Mr A. S. Farrar, Returned Services’ Association —held its last meeting yesterday and is now disbanded. The district manager of the State Advances Corporation will in future handle all rehabilitation loan applications. Mr Kinsella paid tribute to the wisdom and understanding the committee had shown in handling thousands of applications for loans since the war. He said some applicants would have made very foolish purchases in the way of housing, farms or businesses without the guidance of the committee. Many applicants had since returned to thank the committee for persuading them not to continue with schemes which later failed.

Throughout New Zealand, rehabilitation loans had financed men into 60,000 homes worth £lOO million and on to 12,000 farms worth another fortune as well as into scores of industrial and professional enterprises. The scheme had further provided funds to buy tools of trade, furniture for homes, and the means to undertake trade and professional training.

Some of the most successful men in the professions and a variety of other business ventures had been given a start by the rehabilitation scheme, he said. Mr Kinsella said the men who had borrowed the money