State Loan Policy

Evening Star, Issue 20049, 14 December 1928, Page 3

State Loan Policy

HO CONVERSION ADVANCES ' LIVELY DIFFERENCES OF OPINION [From Our Parliauentari Repohies.) WELLINGTON, December 13. Sir Joseph Ward’s declaration to Parliament that the extended resources of the State Advances Department will not be used to repay old mortgages produced a lively exchange with the Opposition benches. Ho repeated twice that the State advances policy would be to lend money to those requiring farms and homes, rather than to people who wished jto convert mortgages and secure Something at a cheaper rate of interest, lb would be a retrograde step if New Zealand were to make the State Advances Office an institution for the conversion of mortgages. Permanence of residence was what was aimed at. Mr Parry (Auckland Central): That is a continuation of the present policy. Sir Joseph: Yes, as far as that is concerned it is, and I am not going to give preference to,anyone as against the policy laid down .thirty-four years ago. it would bo impossible for any Government to lend money to those already established, and to fresh applicants also. Mr Wilkinson: But 90 per cent, of the State advances are for conversion of mortgages. Sir Joseph: The question is are we going to increase the productivity of the country, or are w© going to wait till wo have paid off those mortgages before we start)' Mr Wilkinson; The old policy was to run those two together. Sir Joseph: It is impossible to treble the amount in one year. (Loyd Reform laughter.) Sir Joseph; What is the trouble over there? Mr Coates (still laughing):. Oh, nothing. Sir Joseph Ward: 1 thought 1 heard some smiling over there. A Reform’Member: Good reason. Mr H. E. Holland suggested that the Government would be driven into providing loan renewals for farmers to prevent them being driven off the land.