8.—6

Amounts advanced by the Department during the following financial years : —

The business of this Office is extending rapidly, and its capital requirements are large. 1 am desirous of encouraging the settler to use the table form of mortgage operating in this Department, and would be glacl to see other lending institutions adopt the system. In order to facilitate general lending to settlers it is proposed to repeal the present mortgage duty of ss. per cent. Fresh capital for State Advances purposes should if possible be raised in New Zealand. This would probably mean slightly dearer money than the Government has hitherto been paying for[these loans. In order that the Department may adjust its lending rates to cover costs, empowering legislation will be submitted to honourable members in due course. HOUSING. The Government is continuing the policy of rendering all possible assistance to overcome the shortage of houses. It should not, however, be expected of the State alone to provide the means of meeting the difficulty, and the housing problem will not be solved until private capital is more extensively employed than has been the case in the immediate past. There is at present some sign of increased activity in the desired direction, and 1 trust that with the united efforts of all sections of the community the shortage will be-speedily overcome. The following table shows the extent of the assistance towards the erection and purchase of houses rendered by the State during the last six financial years: — Number of Amount. Houses. £ State Advances* .. .. .. 17,056 9,940,317 Discharged soldieis (urban areas) .. 11,456 8,845,311 „ (farm properties) .. 4,063 1,186,000 Railway Department (State employees) 543 465,655 Public Works Department (State employees .. .. .. 247 227,640 33,365 £20,164,923 * Excluding amounts advanced to release mortgages on house property. In addition during this period the State Advances Department granted loans for housing purposes to local authorities totalling £634,145, but the number of houses erected is not known.

Housing,

15

Tlst Mardf ® e^^er8. To Workers. ! To Local Authorities. Total Advances. £ £ £ £ 1914 .. .. 978,395 272,860 324,150 1,575,405 1915 .. .. 1,136,475 313,025 336.295 1,785,795 1916 .. .. 814,555 275,680 285,410 1,375,645 1917 .. .. 589,975 214,965 152,310 957.250 1918 .. .. 367,160 125,855 128,150 621,165 1919 .. .. 350,140 87.590 130,575 568,305 1920 .. .. 808,180 225.055 311,880 1,345,115 1921 .. .. 1,060,260 660,790 444.825 2,165,875 1922 .. .. 805,975 407,580 708,410 1,921,965 1923 .. .. 945,900 724,830 711,375 2,382,105 1924 .. .. 3,904,150 1,863,331 438,205 6,205,686 1925 .. .. 3,516,130 1,383,945 338,805 5,238,880 Totals .. 15,277,295 6,555,506 4,310,390 26,143,191