HAWKE’S BAY EARTHQUAKE

Otago Witness, Issue 4029, 2 June 1931, Page 24

HAWKE’S BAY EARTHQUAKE

REHABILITATION COMMITTEE. PROCEDURE AND POLICY. WELLINGTON, May 29. The Hawke’s Bay Rehabilitation Committee, has concluded its opening meeting, and has released for publication a statement governing the procedure and policy. On the grounds of economy, administration, etc., it is considered advisable that the headquarters should be in Wellington. It will be found necessary in special cases for the committee to sit to consider applications in the earthquake area. It is intended that the majority of the applications shall be considered by the committee sitting as a deliberative committee. In some cases, however, it may be necessary to hold a formal inquiry. Regarding the general policy dealing with applications, it states that some undertakings such as banks, insurance companies, and the Hawke’s Bay bl anches °I Y , New Zealand business 's will be expected to help themselves. In other cases where there is no doubt that assistance is required, consideration will be given to each case on its merits. I'he committee, with a view to the most beneficial and far-reaching use of the funds available, expects as many as possible to help themselves by arranging any necessary reduction, or in some cases the cancellation of present liabilities, and by making the fullest use of their own resources or such funds as they are able to raise privately. It is considered that such activities as churches, social services and societies, and educational institutions have their first line of financial resources in the goodwill of those interested in the activities. The committee may be able eventually to consider moderate assistance, but thinks it can do so only by recommending assistance by way of subsidy on the funds raised. The majority of such institutions can make their own appeal over territory wider than that of Hawke’s Bay. The policy of the committee will be Primarily to recommend the utilisation of funds for the rehabilitation of premises of reasonable size, and with a view to securing buildings more stab l and at a lower overhead cost than was available before the disaster. It considers the resources insufficient for the adequate -e--placement of stocks, but an applicant it reinstated in premises should, as a general rule, have little difficulty in procuring sufficient stocks to enable the resumption of profitable business. The committee hopes to be able to consider the granting of assistance to meet special cases where an applicant is unable, for financial reasons, to maintain his stocks as he did before the earthquake. j.ne committee suggests that applicants and secured and other creditors should meet for friendly discussion of the problems arising out of the conflicting interests in the affected properties, and is willing to assist by way of mediation. It will be prepared where such negotiations resulted in an approved arrangement to consider recommending the moderate grant of a loan.

- committee's present feeling is that it should be recognised as a general rule by creditors that where the destruction of assets rendered an applicant insolvent, they should write off their claims and give the applicant a clean start with such assistance as the committee can recommend.