SOLDIERS’ LANDS

Rotorua Morning Post, Volume 3, Issue 704, 2 December 1933, Page 5

SOLDIERS’ LANDS

(Press Assn

TRAFFIC M FtjNPf. government hyuothicates the reserve ' fun-ds ' BIG SUMi USiED

By Telegraph— Copyright). '

Wellington, "Friday. 'Diseussing i^he vote for the Discharged Soldiers' Seftlement Account in the House of Representatives- td1 day, Mr. F. Lang&tone (Lah'our,- Wai•m'arino) aske'd what was th'e'>amouht heing paid to the banks a's a 'result of the hypothecation ,,of reserves. Mr. Langstone also asked' whether ithe money in the fund was returning siiffieient interest to meet obligations to the banks. .. . - » - -v- ; (Mr. A. J. Stallworthy (Independent — Eden) asked Whether there* wa's a possihility of the actual management of the settlements' passing " to the banks. ' • - The Minister of Finance, the Hon. J. G. Coat.es, said the money had been advanced to the Government on the security of 'the reserve fuh'd, and whe-n it was convenient for the' coun■jry, it would be repaid. *'• " !Mr. Langstone: How much has been advanced !to the Governimient-f " Convenient Finance . .Mr. Coat.es replied that £2,500,000 had been' advanced las't" year,* ' ' and £2,000,000 this year, 'making £4,500,000 altogeth'er. -It was a conifen'ient way of- raising money with but calling qu_- the taXpayer, and the money would be paid haek either -by ari anter'nal loan of by some othe'r'm'ethod when the finances of tjie cbuntry were -buoyant again*. The interest being paid was 5 per cent. 1 Mr. Langstone: How much is in the reserve account? ' Mr. Coates said the original value of the securities h'ad been about "£I3,000,000, hut" some of them had been written down.' ' - * - There was no ddnger of the banks gaining control' Of the settlements, continued the Minister, which were perfectly safe as fia-r as the occupiers of the properties were concerned. Hypothecation Safe The Minister in Charge for Discharged Soldiers' Settlements, the Hon. E. A. Ransom, said that interest on discharged soldiers' ' settlemlent loans amounted to £1, '1'03,750 last financial year. There 'was rio danger of the* security of the fund beih'g jeopardised by the hypothecatip'n of reserves. - Replying to other points raised the M'ini&ter said if members could show him individual cases of where Gi*owri tenants under the Discharged Soldief Settlement Act had 'not received a fair run, he would give an undertaking to reinstate them, bither on the same1 faiimi oi* some other. He would also suggest that if Crown tenants still on'a farm felt they* were not getting a fair deal theylshould make application to the Mortgagors' Relief Comimittee. The Government would be prepared to stand by a recommendaifcion of that coihmittee. The Wrong Time

"This is not the time-wherf we can reasonably fix a valuation for the next 21 years," said the Minister, replying to a request- by Mf. A. M. ■Samuel (Independent; 'Thames), for a revaluation of settlement land's. The markets are so unstable that it would not be possible to1 arrive at ;a sound basis on which to fix the valuation," continued' the Minister, "However, I can give an assurance that the Government intends as soon as prices are reasonably stabilised to. deal w-ith' the questio'n of revaluation." ' ' '* 4 The vote was passed.