WELLINGTON' NEWS

Hokitika Guardian, 23 January 1926, Page 1

WELLINGTON' NEWS

MONEY FOR. HOUSING. . (Special to “ Guardian.”) WELLINGTON,'Janaury 20. As is well known those borrowing from the Advances Department have now to pay a higher rate of interest. Those borrowing to build houses will he charged GJ per cent less 10 per cent rebate on prompt payment of interest, '.illicit brings the sum down to oil per cent, and there is 1 per cent for sinking l'uml making the total payment 63 per cent and the term for the loan ;)0 years. It is doubtful if the De-

partment will have sufficient money to meet the requirements of such borrowers also of those who wish to repay old mortgages and local bodies. Preference will no doubt be given to those desirous of building homes. But G;3 per cent for 3C-J- years is a staggering burden and may check the aspirations of such house builders. What is really needed to further the scheme is the provision ot ample lands at a low rate of interest. It would be manifestly wrong of the Government to lend the money it borrowed at a lower rate of interest than it had to pay itself, for the difference would have to he made good by the great body of taxpayers who would resent such an imposition. It lms been suggested that, advantage should he taken of the present craze for art unions and for gambling in “Tats” consultations. It is suggested that the State should avail itself of the various sums of money sent abroad for lotteries. Thousands of pounds go away to Tasmania cvciy month which could just as well be retained in New Zealand and bo employed in housing the people. A correspondent suggests that an Act empowering the State or municipalities, under State supervision, to operate lotteries to he allocated in the proportion of 10 per cent for flotation expenses. 10 per cent for cash prirsos and GO per cent to a pooled fund so raised, the 1», -'ey could be lent to borrowers at a very low rate of interest. There are quite a number of other schemes that could be put into operation; there is for instance the Continental scheme of issuing premium bonds, but tho objection to them is that they encourage gambling of which we have far too much already. Art unions now appear to be quite a regular thing, and some of those already completed have netted the nromotors handsome sums. ‘ MINISTERIAL SHUFFLE.

The appointment of three new Ministers was so fully anticipated that no one was taken by surprise. It was not thought, however, that the Hon W. Nosworthy would lose the portfolio of Agriculture but since that has been taken from him and handed to the Hon O. Ilawken there is probably some significance in the change. Mr Nosworthy lias been mainly responsible for the existence of the Control Boards, wheat l""ils and enibiirgo on wheat, and it may be that such Government interference in trade matters is to cease or at all events lo'be greatly modified. The Prime Minister ha- already intimate’ that the control ol wheat will not be continued after this season, but this is not the important matter involved in the change. The question ol the absolute control of dairy produce hits' yet to be definitely settled, and on present appearances there is considerable doubt whether the proposals of Messrs Grounds, Good fellow ami Hie others will lie endorsed. The approval of the Government must lie obtained, although the legal aspect of the matter is r-muewhnt dubious. But the big question lias reference to the .Meat Control Board and freezing companies. When the Poverty Bay Meat Moths were sold to Yes toy Bros, with the consent of the Meat Board and the Minister of Agriculture, the Government came in for some very severe criticism ; now the question is will the Meat Board sanction the sale of the Wellington Meat Export Company’s works to Messrs Borthwick and Sons? In some business quarters it is regarded as certain that the sale will be sanctioned for In refuse endorsement of Lite sale would involve very grave consequences. Freezing' works would cease to have any value as a security for hank advances, and tile hanks that have already made big advances would ho obliged to call in their credits and coniine their advances to the commercial operations of the companies. If such a thing happened the freezing industry would be crippled. The banks may even go so far as to lest tho legality of a refusal to sanction the sale. The new Minister of Agriculture is not fettered by promises and can act with fairness to all concerned. There is nothing to he gained by preventing the sale taking place, for the buyers arc not thereby prevented from operating in fat stock and freezing at any works; if they secure the Wellington works they will do their own freezing in their own establishments.