£6 A WEEK LIMIT IS REMOVED

Hawke's Bay Herald-Tribune, Volume 81, Issue 66, 10 December 1937, Page 3

£6 A WEEK LIMIT IS REMOVED

-Press Assoeiation.)

Amount of Advance Extended • f HOUSE PASSES BILL

tn* Teleuraoh-

•WELLINGTON', Last Night. The limit for speeial loan advances by the State Advances Corporation for housing purposes is to be raised from £1000 to £1250. This was announced by the Minister of Finance, the Hon. W. Nash, when moving the second reading of the State Advances Corporation Amendxnent Bill in the House of Eepresentatives to-day. The Minister said that under the principal Act speeial loans were limited to persons receiving loss than £6 a week. The Amendment provided, however, that any person applying for a speeial loan eould get one irrespective of his income, so.- long as he was approved by the "corporation. Speeial loans were- those issued in excess of 66 2-3 per cent. of the value of the security, and the proportion above that was guaranteed by the State. Dealing with the provision for loans to employers to build houses for theix employees, the Minister said they could noiy . get loans of up to 90 per cent. of the value compared with 75 per ceut. under the Housing Act, 1919, which was being amended. If a new industry .was being started, for iustance, and the owner wishes to spend £10,000 on housing, the State Advances Corporation would advance him £9000. Mr.-J. G. Barclay (Government, Marsden) : 'Would that' apply to an'individual farmer? "If tha security was there I would be only. too. glad to provide facilities for housing," Mx'. Nash said.." We will inake facilities available. in the country similar to ' those in the towns. ' ' Mr. A. C. A, • Sexton . (Independent, Franklin): But you have not done so. • Building in Country. 'We have never denied the same rights to those who wish to build in the country as we give to those in tlie cities, 1 1 Mr. Nash replied. "The difficulty is that if a farmer wants to build "a house on mortgaged land Ihe State Advances Corporation cannot get priority over the other mortgagee without over-riding the rights of private people." Mr. Sexton: You have ovor-xiddeu the rights of landlords. Mr. Nash: If the Opposition wishes us to over-ride the rights of mortgagees I think we would do it. Another section of the Bill gave. the Government authority for the building of shops,-halls and libraries in housing areas for leasing, Mr. Nash added. There was no idea of building shops to compete with existing ones. The State Advances Corporation was described by the Lq.ader of the Opposition, the Hon. Adam Hamilton, a's one of the most important institutions in New Zealand, having over £56,000,000 under its coutrol last year. Its net income was £467,000. tThe Government had failed to see the difference between the corporatiou functioning as a useful State 'institution and the State entering into a scheme of building houses .to let. He did not consider it advisable that the State should build houses to rent to people. It was also debatable whether it.was wise for the Government to take power to build shops, libraries and public halls. t Wider Scope for State Housing Loans-2 Mr. J. Hargest ((Nat., Awarua) asked if it were a f act that people getting over £6 a week wer© being given Government houses. Mr. Nash: Yes. The questioi>

glad this was so beoause otherwise there might be too great a percentage of lo.w-salaried people who could not meet their obligations in Government houses. Payment of Rates. On resumption in the evening, Mr. R. A. Wright (Ind., Wellington Suburbs) raised the question of the payment of rates, suggesting that in the case of State houses allowance should be niade in connection with rentals for periods whei\ ithe houses might be einpty. _ ' Mr. H. M. Christie (Govt., Waipawa) said the Government was setting out to build what practically amounted to suburbs uuder its housing scheme, and surelv it *was entitled to provide shops for the convenienc© of occupants of State liouses. Mr. C.-M. Williams (Govt., Kaiapoi) said that from a Socialist point of view there was no more objectjon to a person owning his own house than there" was to his owning the suit of clothes on his back, but he pointed out that there were grave disadvantages to the individual in the ownership of house property in the event of his removal from one part of the Dominion to another. Minister Reppcs. The Minister of Finance, the Hon. W. Nash, in reply, said. that the houses being built by tbe State were far better than those built previously. The renetals of houses such as the State was producing would cost 35/- to £2 a week if they jvere let by private individuals. Referriug to the State Advances Corporation' s intentions in regard to the building of houses, the Minister said that if a person of good cliaractcr, with a siiitabl© section, wished to build a house, the corporation. would have it built for him in his own name. The Bill was read the second time at 11.30 and the House went into committee ooi all four Bills, for which urgency was granted this afternoon. The Bills were rapidly passed throngli all stages, the House rising at 12.8 a.m. until the ringing of the bells on Friday morning. Mr. Savage stated that the House would adjourn to-morrow until Tues, day, March 1,