NO ADVANCES

Hokitika Guardian, 30 October 1931, Page 2

NO ADVANCES

POSITION EXPLAINED. EXCEPTIONAL CASES MAY BE CONSIDERED. WELLINGTON, October 28. The financial cupboard of the State Advances Department is bare, and only in exceptional circumstances can applications for loans for new houses be approved, according to a .statement made in the House yesterday by the Hon. W. Downie Stewart. Almister in Charge of the State Advances Office.

Answering numerous questions during consideration of the relevant Estimates, the Minister said that lie had

received a very full report lro-in the Superintendent of the office showing how the department was endeavouring to help hot.li primary producer ami worker mortgagors to overcome their

difficulties. Extensions of time were granted where this was warranted b.v the circumstances. ar. ( | where ipxlanfations were not sat isl‘a« Tory specialinvestigations were made. In some eases where mortgagors had substantial equity in their own property the department granted an extension ol the loan, covering; arrears, spread over a period as long as thirty years, without any increase in the amount of the instalment; The policy of the department was to go to any lengths to prevent its properties from becoming or remaining vacant. The greatest difficulty in that respect had been experienced in Auckland, hut within a very small margin those places were being occupied on some terms and lor some length of time. It was in the interests of the department that the properties should he kept in occupation at all costs. Loans for Houses . Concerning fresh loans for homes, the Minister said 4 hat if there were 110 money available it was better that the public should know of it so that tlie expense of haling valuations made could h(> avoided. '‘When i took over,’’ said Air Stewart, “I found that the cupboard was bare and I conferred with the Superintendent ” Air F. Langstone (Labour. AA’aimarino): You must have been Old Alothcr Hubbard.

The .Minister: 1 don’t mind that. As ! said, I conferred with the Superintendent and suggested that it would save prospective jappliennts a great deal of trouble if it were made known whaf tin' prospects wer ( » before lodging their applications. There is no fresh money going into the office this year. The only money available will' be the repayments, which normally amount to approximately L‘2,000.000, but these are at present in arrear, and the instalments are not hying repaid ns in normal times. As far as these funds will go, the ,department is using them to assist those who are already mortgagors to remain in their properties. It is just as well to say frankly that in connection with applications for loans for new houses it will he feasible to approve them only in very exceptional eircu m stances.

The point was made by the Minister that some time early next year the department would have to find funds towards the repayment of 3 small New Zealand loan of about £1.000,000, i-uis-ed for the purposes of the department, and it was hoped that current repayments to the department would also help to meet the position.