RURAL HOUSING BILL

Gisborne Herald, Volume LXVI, Issue 20050, 23 September 1939, Page 14

RURAL HOUSING BILL

ADVANCES TO FARMERS PROVISION OF HOMES ADVANCES UP TO £750 (Per Press Association.) WELLINGTON, this day. Provision for advances to farmers for the erection of dwellings for themselves or their employees, .is contained in the Rural Housing Bill, which was introduced in the House of Representatives yesterday by the Governor-General’s message.

The bill was read the first time. It empowers the State Advances Corporation to make loans out of the housing account to county councils, borough councils or town • boards which may lend sums up to £750 to farmers for the erection of dwellings. Provision is made for the repayment of these sums to local bodies as rates. Explaining the bill on its introduc-

‘ion, the Minister of Housing, the Hon. IT. T. Armstrong, said that the scheme outlined in the bill was more likely to be taken advantage of than any other method of providing rural housing that existed at present. The local bodies conerned would be able to borrow from the State Advances Corporation without taking a poll ot ratepayers, and the repayments would probably be spread over 25 years at the ordinary lending rate of interest. Provision was made for the lessors or mortgagees to be notified before any advance was made to fanners and, if they objected and suitable arrangements could not be made, it would not be possible to proceed. It would be possible for loans of up to 100 per cent of the security to be made. “I am not very keen on the £750 limit,” Mr. Armstrong added. “The State Advances Department can deal with every case on its merits and it should be possible to have a good check in that way.” “The Leader of the Opposition, the Hon. Adam Hamilton: Does that security come in ahead of the mortgagee? “Yes,” replied Mr. Armstrong, “but only with the consent of the mortgagee ”