PARLIAMENTARY NOTES.

Taranaki Daily News, Volume LII, Issue 120, 18 June 1909, Page 4

PARLIAMENTARY NOTES.

W. OKEY ON ADVANCES TO ■SETTLUKS. 'Mr. Okey (Turanaki) said he wa<s rather surprised that there wit a not a sum of money in the loan for the purpose of advances to settlers, lie took up the position of the borrower. A good deal of the depression of tile ipast year had been owing to the lending departments not having enough funds to meet demands. He thought it must be

admitted that the Advances to-Settlers Department was «i main cause of capital

leaving the country. The loan companies did not come here for their health; they came to make a profit. (Mr. KM: By extortionate rates.) It must Ibe difficult for the Department now to get money to let out at the rate which the Act allowed. It would be better for the settlers to pay more for their money, and be able to get it, than to 'be in their present position. He knew that it was not a popular thing to advocate the raising of the rate of interest, (but it was clear that the lending departments had been short of money, and he thought the Government should look into the matter. It would be in the interest of the borrowers if the Government had brought down a measure by which thev could issue a fresh series of loans, raising the interest by half per cent. Many people who had made replication for lesser amounts had been kept waiting four or five weeks after paying their valuation fee. The unemployed trouble would have (been diminished if the farmers had had money to undertake improvements oti their farms. At the present price of land. £">00, the present limit of the Department, was very little use to a man when he went borrowing. .There should be means of borrowing up to £3OOO, if the borrower had s'ecurity, and the lYime Minister should have

brought down a scheme that would provide sufficient funds for advances to settlers. JMr. Okey referred to the gross lots incurred by "the co-operative system of conducting public works, and

suggested that an investigation should be held i?ito the way in which these works were carried on. He hoped that the sum of £50,000 to be raised for new works would 'be distributed fairly

and with advantage to the back districts. Referring to the 'Advances to Settlors Department, the Prime Minister said some members liad complained that the amounts loaned were not .sufficient, but when the Bill was first introduced the

limit was reduced from £o,ooo at the

demand of the Opposition. l He quoted figures to show that most of the loans were of small amounts.