STATE LOANS FOR FLOODED FARMERS

Chronicle (Levin), 4 July 1947, Page 7

STATE LOANS FOR FLOODED FARMERS

WELLINGTON, July 3. ' Arrangements for State assistance to farmers in the flooded areas were announced last night by the Minister of Agriculture, Mr. Cullen. Finaneial help would be given to those settlers who needed it to put their properties in order again. Special flood relief accounts, which would be guaranteed by the Government, will be charged at the rate of 3 per cent. Mr. Cullen said that the organisation for the neeessary relief was being established. A local organisation was being formed of farmers and departmental oflicers so that the neeessary grazing and supplies of supplementary feed for stock from the flooded areas •eould be- arranged as soon as possible. Both farmers who eould supply grazing and feed and those in need should communieate with the Department of Agriculture 's ofliee at Masterton. Those needing special help shoulcl supply the local bank manager of the Bank of New Zealand with a statement indicating what additional resourees tliey would require to obtain suffieient fodder or grazing for their stock, for the purchase of live stock, and the rehabilitation of their farms1 and liouses, and if neeessary also for living and operational expenses until the farms were again in production. If satisflea that some special provision was required, the bank manager would open a special overdraft aceount to be known as the "Flood Relief Account,' ' to which eould be charged expenditure for the purposes specified. Security for the special advances which would be guaranteed by tne Government would be arranged by tfie loeal bank manager. Where a farmer requiring special assistance was a customer of a trading bank other than the Bank of New Zealand, he eould make applieation through liis own loeal bank manager, who would make the -neeessary arrangements with the loeal manager of the Bank of New Zealand for a "Flood Relief Accourit," and if tlns was agreed to he would be able to draw 011 it through liis own bank. In view of the fact that the special "Flood Relief Accounts" were to be guaranteed by the Government, it had been agreed that these accounts should be charged at the rate of 3 per cent. Mr. Nash, Minister of Finance, said that the covering of people against flood losses was in the Labour Partv manifesto at last election. Then it was stated that it was proposed to extenrl the system of in'surance from flood, liail and other damage, which now appliea to wheat and tobaeco, to other forms of primarv industrv- This was being investigated now. When the Wairarapa floods oecurred the Government eommunicated with the Works Department engineers and the Mayors of severai Wairarapa boroughs to see what steps eould be taken to assist.