FINANCE FOR FARMERS

Sun (Auckland), Volume II, Issue 477, 5 October 1928, Page 12

FINANCE FOR FARMERS

RURAL CREDITS SYSTEM DISCUSSED “SURROUNDED BY RED TAPE” (THE SUN’S Parliamentary Reporter) WELLINGTON, Thursday. The question as to whether or not the Rural Intermediate Credits system is operating satisfactorily was fully debated in the House this afternoon, when the reports of the Rurai Intermediate Credits Board was presented by the Prime M i n ister. One immediate result, was a protest by the Leader of the Opposition, Mr. H. E. Holland, against the practice of presenting papers which members had had no opportunity to examine. Mr. W. Lee Martin (Raglan), said the Rural Intermediate Credit Associations had not functioned satisfactorily. They had not received adequate backing from the Government, and there was plenty of evidence that the individual farmer was still being financed by the dairy companies. In the Waikato district the stock and station agents had not taken advantage of the Act. Mr. J. G. Eliott: Has the big dairy company ? Mr. Martin: Yes. DOING ITS WORK Mr. A. M. Samuel (Ohinemuri) said, though the system was still in the experimental stage, he was certain it was filling a much-needed want. It was another form of agricultural bank, and if administered sympathetically would furnish a satisfactory means of financing farmers. “I wish I could believe it was an agricultural bank; but it is not. As everybody knows, it is a farce,” said Mr. M. J. Savage (Auckland West). The administration of the system was surrounded by abundance of red tape. Mr. W. S. Glenn said Mr. Savage should not criticise until the system was in working order. It was the best system available, and was going to do more for the financing of the farmer than any other Act placed upon the Statute book by the present Parliament. Mr. C. E. Macmillan: It is the first step toward provision of cheaper money. NOT RED TAPE Mr. P. P. Hockly (Rotorua) said both the central board and the district boards were doing very* fine work. Mr. R. W. Smith (Waimarino) said what had been called red tape was in reality only reasonable safeguards against loss. The Prime Minister said the Public Trust Office had to be congratulated on the manner in which the organisation had been handled. Already the applications of 3,000 settlers had been dealt with, and £IOO,OOO had been advanced. Mr. H. E. Holland: That is only an average of £33 each. Mr. Coates: All of the 3,000 settlers have not yet received their advances, but the formalities have been completed.