CORRESPONDENCE

Hutt News, Volume 3, Issue 4, 19 June 1930, Page 3

CORRESPONDENCE

WORKER'S LOANS

(To the Editor)

Sir,—The reply of the responsible Minister to a deputation from the Carpenter's and Joiners' 'Society is a little astounding and can only be accounted for by the fact that the Minister is new to his job. There is not the slightest , doubt that in the majority of cases the. : Department is offerng less than 95 per cent, of the value of dwellings on which loans have been applied for and plenty_ of evidence can be provided that this is so. Does .the Minister know that the Department,does not profess to advance 95 per cent., but that it has a new system under which earning capacity of the applicant becomes the factor which governs the amount of the advance to be made I do not think the Department makes any secret of this fact; to get the full loan an applicant must be in receipt of not less than, £300, and loans on a sliding scale are granted to persons earning less "than that amount. Evidence of this can also be supplied if required. ~' . - Further than this, the cost of building is being steadily increased owing to the

idiosyncrasies of the Department's inspectors. The latest additions to the cost of dwellings being due to the inspectors insisting on 5 x 2 ceiling joists, instead of 4 x 2 and four coats of paint instead of three —tilings that no architect would ever demand. The Department further adds to the cost of construction by the inordinate delay in paying out. The specified; progress payments are never made, ana in point of time and amount the progress payments, are less than half of what they were a year ago. The position now is that in the case of a loan of £900 the Department has paid out about £250 by the time that the owner has taken possession, thus the owner has taken possession^ thus the builder loses, his discounts and the cost to him is increased.

If the Minister is serious in his intentions as regards this important Department, it is ".up to" him to do some investigating, which is long overdue, and in this the Carpenters' and Joiners' Society and the builders couldi T(and would) render him valuable assistance. — fam etc., - > INTERESTED.