STATE ADVANCES

Rotorua Morning Post, Issue 4, 27 August 1931, Page 3

STATE ADVANCES

("Post" Spec'al Commissioner) .

DEPARTMENT NOT EMBARASSED repayments maintained.

WELLINGTON, Wednesday. A suggestion that the. State Advances Department is fac'ng difficulfcies owing to an abnormal number of failures on the part of its borrowers to repay the usual instalments of principal was brought under the

notice bf tbe Pr'me MIn:ste.r, the Right Hon. G. W. Forbes, to-day. In denying the accuracy of the report, Mr. Forbts said that the ^Department could qu'te adequately cope with all its business requirements out ' of its ov/n reserves without assistance from the Consolidajted Fund. There was no trading department of the State in the slightest degree embarrassed in ■ conducting its business under the presenfc cond'tions. The annual statement of the Denartment's accountant rece.ntly submitted to Parliament shows that repayments of principal have been weR maintained. Mortgages and instalments of principal repaid under the Advances to Settlers branch durmg the past year amounted to £960,- ; "203; repayments to the Rural Ad- ! vances branch totalled £96,881; to , the Advances to Worljers branch ! £585.181 and by local authorities to £75,370. The main activity of the Department is in connection with advances to settlers. Under this heading it ; holds in tbe reserve for bad debts the sum of £124,852, in the sinking fund j £1,7.36.600, and in the reserve fund j £25,000. It showed , overdue interest , at £238,084 and made a net profit of £15,313 on the year after paying income tax. i