ACTION EXPLAINED

Rotorua Morning Post, Volume 2, Issue 368, 1 November 1932, Page 7

ACTION EXPLAINED

unemFloymEnt board loan for hotel building. HELPING REHABILITATION. Wellington, Thursday. - The reason why th'e Unemployment Board granted a loan of £8000 toward | the cost of rebuildiiig the Masonic Hotel, Napier, was given by'Mr. W. E. Barnard , Labour, Napier) in the House of Representatives last night : in the conrse of the Financial Debate. He said that £21,000 !hadf been advanced by the State Advances offices on first mortgage, the Department acting on behalf of the'Hawke's Bay Rehabilitation Committee, and the Public 'Trustee lield £15,000 on second inortgage. The Unemployment Board made a loan on third ■ mortgage of £8000, making a total of £44,000. The cost of the building was £42,000, and he was reliably informed that the land on which the hotel was built was worth* at least £25,000. The position was that- £44,000- had been loaned on security of £67,000. Dealing with- the reason for the Unemployment' Board'sToan, Mr. Barnard said that there had been diffieulty. in making arrangements "to rebuild. The importance of the Masonic ' Hotel to the toWn had been stressed, and it Was felt that unless it was rebuilt there was great danger of that pottion of Hastings Stre'st not being rehabilitated at all. It was not the case of a loan for rebuilding a hotel, hut a loan to- help a i very important part of Napier to go forward: A condition was tliat all the labour should he taken- from- the unemployed register; the men were paid standard rates of pay. ' Mr. R. Bemple (Labour, Wellington East): The principle could be abused. > Mr. Barnard said there had been speeial interest taken1 in the case, and | he felt that the circumstances should be explained.