FINANCING LAND BUYERS.

Taranaki Daily News, Volume LI, Issue 171, 10 July 1908, Page 4

FINANCING LAND BUYERS.

A Ml£\V SCUlijlli OF ADVANCES. During the course of tlie Financial Statement Sir Joseph Ward outlined a new si-Hume tor financing buyers 01 land. We made brief reference to it in uur report on Wednesday. give full details as follows: — The large-:treas'"of'land' that are now J.rfng pttt 011 the market by private holders call, for consideration from ttte standpoint of helping desirable settlers to acquire for settlement selections or the same areas as is provided for m, tiie Land for Settlements Act upon me easiest possible .financial conditions. The work of the Land for Settlements Act involves an expenditure of about half a million sterling per annum, winch adus directly to our public debt. It is meeting a great want and should li'ov in any way be curtailed. After careful consideration 1 am of opinion that a departure in another direction should be mailt', and a system of special settlement association established so as to enable that greater desideratum, the closer settlement of land, to be carried out still more expeditiously. 1 therefore propose to submit proposals to the House this session making financial provision for special land seUleineut upon the following lines: ■ Upon application by any number, say fen or more, of intending bona tide settlers who have obtained from a private landholder an ofl'er to seii his estate at. a fixed price by liim, the Land Purchase JJoard shall Inspect the land, ascertain its suitability for settlement and tlie fairness of the pr7e.", and if I lie Boaro is satisfied on both poults it will report to the .Minister of Finance. The proposed settlers win then submit uieir scheme of settlement, which must be consistent with Hie limitations anil other conditions of the Land for Settlements Act. If the scheme is approved by the Land Purchase Board the Advances to Settlers Department, IhrOugu the .Minister of Finance, will obtain me money required to purchase the estate ill the name of the settlers, who win also bind themselves as ordinary mortgagors by their own covenants in addition to the security, and the Government will guarantee repayment of capital and of interest to lender I propose to provide "for a redemption fund »' which settlers would pay both and interest ill 32% years, ifon. members will see that Dy afitipting mis course the,-country's guarantee for tile capital a/.d interest would be made absolutely' safe, inasmuch as the rcdu - tion by way ol sinking fund paid by the settlers themselves would upon every payment strengthen the security both for the lender alia the Government guarantee, and ad improvenirm's elicited upon the special settlements would still further reduce Ule liability of lite lender and improve tile securilv vif the Slate. Thus the guarantee of tlie Dominion would be steadily rcducm aim the vtlue of the security steadily increased. The proposed settlers siiotiij have the same right of usage of lands an is now enjoyed by Land for Settlclueut tenants. Hon. members - will recognise that if any settlers now purchase land from private owners the land as soon as tiley have paid oil' tlie purchase money becomes meir own pro- j perty, and this proposal does not take away from them the light in that respect that they would possess. Oil the contrary, it would give them great heart to work and "develop their property, as under the terms J. propose ■ I!- would be done under very easy i i>: lition-. 1 fee] sure that the proposal, which is one of great importance, should -help immensely a number oi men who iutend to settle upon'the land to obtain areas from private owners in different parts of the Dominion suitable to their requirements, and upon financial conditions thai would make acquirement of it comparatively easy. It will have the further advantage 'of preventing any direct addition to the debt of the Dominion, nn important consideration in view of the criticism that so frequently takes place with moni\s that are used t n r w'hat I may term the people's social requirements.