RETURN TO CIVIL LIFE

Dominion, Volume 36, Issue 14, 12 October 1942, Page 4

RETURN TO CIVIL LIFE

Help For Returned Men Taking Up Land

REBATES OF INTEREST The question of assisting returned soldiers to take up farming by State Advances loans was referred to on Saturday by the Prime Minister, Mr. Fraser. He said that to encourage soldier settlers by easing their financial obligations during the transition period from Army life to civilian life, which was a period when many men may be faced with unavoidable difficulties, arrangements had been made on the recommendation of the Rehabilitation Board for the granting of rebates of interest.

“The position is that long-term loans for the purchase of farms will be made by the State Advances Corporation at its ruling rate of interest, 4 1-8 per cent., except that, conditional on prompt payjnent of instalments and general compliance with the conditions of the loan—-and these qualifications are important—a rebate will be granted tp reduce the rate to £ per cent, for the first year and 3 per cent, for the second and third years,” said Mr. Fraser. “These rebates during the first three years are in the nature of rewards for good husbandry, and it is anticipated that they will be received by the great majority of the soldier settlers. “In addition, a discretionary powrnr has been granted to the State Advances Corporation, which is administering rehabilitation loans, to extend the period’ of rebate at 2 per cent, or 3 per cent, in appropriate cases for various periods up to a maximum of seven years of rebates in all. This power is intended to be exercised in cases where, as a result of w r ar service or on account of other special circumstances, such an arrangement is necessary. Purchase of Dwellings. “In the case of long-term loans for erection or purchase of houses, similar principles will apply. The normal rate of interest will be 4 1-8 per cent., but subject to payments being ;met a rebate down to 2 per cent, will be generally granted in the first year, and in special cases where the circumstances warrant it, necessary rebates will be allowed in subsequent years up to a maximum of seven years in all. “Provision is made for some rebates in loans for .businesses, stock and chattels, and so forth, but all such rebates are conditional on terms being fulfilled or are for assistance in overcoming particular handicaps suffered by soldiers. “The Government will deal sympathetically and generously with men who have served in the forces,” concluded the Prime Minister, “but steps will have to be taken under existing authority to prevent a low rate of interest arranged for the benefit of the returned men being capitalized in land -or property values.”