STATE ADVANCES LAND SETTLEMENT

Nelson Evening Mail, Volume LXIII, 2 August 1929, Page 5

STATE ADVANCES

LAND SETTLEMENT

GOVERNMENT'S ACTIVITIES This is another matter to which the Government gave immediate attention on assuming office. The .previous Administration had restricted the funds available for advances, with the result that settlers and workers had:to wait for months and even years for an advance. When the Government took office I found that there were several thousands of applications on hand, involving an amount exceeding £4,000,000. I immediately arranged to place additional capital at the disposal of the State Advances Board, and gave instructions tliat everything possible was to be done to get properties valued and generally expedite matters. As a result I am pleased to be able to inform honourable members that the accumulation of applications has now been overtaken, and there is now no delay in dealing with applications. ~; Since 10th December, when the' Government assumed office, up to 29th July loans were authorised by .the State Advances Board as follows: — £ To 2000 settlers • 2,420,790 To 2749 workers 2,384,995 £4,805,785 Loans paid over during the same period amounted to £3,319,300. All the additional capital required for State advances was obtained locally. In addition to the proceeds from local sales of public debt securities, additional capital for advances to settlers has been obtained locally from the sale of long-term Rural bonds, securities which are finding increasing favour with tho -investing public. >Sinee this branch of the State Advances Office was started in April, 1927, approximately £1,900,000 worth of bonds'has been taken up. LENDING BATES Having satisfactorily disposed of flic more urgent matter of clearing up the arrears of applications, the next step is to concentrate on the question of interest rates. This, of course, is a matter that will be gradual, the governing factors being the rate at which fresh,capital can he raised, and the cost of refinancing the existing loirns when they fall due. It may also be borne in Jnind that loans borrowed in recent years have been at relatively high rates, which, of course, have to be paid until the loans in question mature. It is well known, however;, by all who have any knowledge of finance that though the nominal rate of'interest on our last two London loans was 4.1 per cent, the discount price would not permit of lending out on that basis right awav. The break in the old rate ot r s per cent, in .May, 1928, indicated that according to circumstances governing world finance rates would gradually work down to 4A per cent, at par. but it is impossible for any one to say when that position will be reached. I am hopeful that the lending rates for new advances can be started on the downward path before long. The Settlers Branch last year made a profit of £30,405, equal to 3s per cent, on the capital invested, and the Workers Branch a profit of £10,887, equal to 2s Id per cent, on the capital.

i IN FOREFRONT OF PRO- | GRAMME jJThe Government is doing everything it'van and spending largo sums of money oii unemployment relief, all of which is admittedly very necessary, because we Ciuniot stand by and see men, women, and children suffer while .the breadwinner is unable to obtain work. Such measures are, of course, only temporary expedients to tide over the unfortunate citizens concerned until we can deal with the basic causes of the trouble. Apart from the humane aspects of the problem, unemployment is only the most prominent indication that our economic machinery is out of balance, for no tlrinking person would assert that there is-not sufficientipotential wealth in the Dominion to comfortably support a million and a half of people. What, then, cause.'of the trouble? I say, unh'esitatingly that it • is the neglect to land-settlement. We have secondary industries and they are expanding, •Ijiit they cannot compete in the world's markets. The prosperity of the whole oquntry.-is bound up in the, products of the land: '-The'widespread effect? of a (Jtot) in the price of wool or butter is ' striking evidence of; this. Accordingly, tjfe only real cure fbr our present difficulties lies in the old -slogan, "Back to tjje land.", Increase the production of our primary products, and also the lumber of people on the land, and the 'lMrket for pur industries is and stimulated, which means more work;and \rade 'for the p'ebple ih, "-Ijjfe .town. ;.' ' ' ' . .Recognising these' basic.facts, the Sjjvernmeht placed land-settlement in te iprefront of ttyeir election programme; and the people endorsed it. Th© Government accordingly will vigorously foster land-settlement in any and ejrery way that is feasible. It is a matter that will take time, but,l can assure honourable members that the Government'will spare no effort to obtain the desired, end. iTThe State holds some millions of acres ioC waste land, but a great deal of it, fw various reasons, is not suitable for immediate settlement. The Minister of Lands, however, has been taking stock of' the position and the Government . proposes to take steps .to bring some ot these waste lands into cultivation. OF SELECTED «j ■■*■■ ■ AREAS of course, is required, and in addition to existing authorities I profse to ask the House to authorise the up to £5,000,000 for landMttiement. In this connection legisla-tion-will be submitted to the House to funds Of. the Lands Department to be used for the preliminary djevelopment of selected areas, which ' \yul be cut up and offered for selection af soon as the land has been brought into such a state that settlers can go ojj£ to it and get an immediate return from' their farming operations. This tritianK.that, as aii alternative to buying developed lands for settlement, the f tijids ,will be used to develop the waste lands that are already in the possession .of.the..State* , ■4n-?»ddition, ;it is proposed to provide f<Jc special assistance to those energetic and capable men with the pioneer spirit who are willing to take up sections of waste land ana do the developmental work themselves. This will be done by setting up a special Land Development , Branch of the State. Advances Office, r\ tsfc funds •of which will be used for atwahces oh special liberal conditions to selected men taking up the class of land to.which I have referred. The idea is tjiaj." in lien of. buying land that . is-fully developed and loading the settler wj|h the capital cost, the man will be aHowed to have the land at a nominal and be given the opportunity of making the capital improvements himself, the' necessary capital being advanced to him on suitable liberal terms bjr'i the State. CGTTING-XJP OF LARGE ESTATES »i »As well as developing and settling backward land in the ways that I have indicated, the Government also intend to proceedresolutely with the cutting- . suitable for closer settlement. Such estates will be acquired by voluntary purchase where the land can be obtained at a reasonable price. The Government, however, will not pay more than the true economic value of the land, and if "sufficient suitable areas cannot be acquired at a reasonable price the Government will not hesitate in the interests of the Dominion as a whole to use compulsion. A number of suitable properties have already been purchased, . and some- have actually been cut up and settled. A great number of properties are being investigated by/ the Land - Purchase Board, but it is evident that the prices asked iby many of the vendors are above the economic value from a production point' of view,' and the compulsory provisions may have to be resorted to if such an attitude is going to be maintained.