H.—lB

tliey will have the first option of taking over a defined section as soon as the development programme is completed. The price of the sections will be fixed on the productive value at the date of final allotment, which will take place when the improvements on the sections are sufficient to enable them to be worked successfully as individual units. 107. The alternative to this method of settling the blocks purchased for subdivision which have not the necessary water-supplies, fencing, &c., to permit of immediate individual occupation is to delay the offerings. This course is not favoured by the Board or the waiting applicants, who have, in general, expressed a preference for having the opportunity to work 011 the sections which they know will ultimately be their own. 108. The shortage of housing materials and building labour continues to cause grave concern, and there appears to be no prospect of immediate improvement. 109. Live-stock continues in short supply and prices are high in consequence, but there is no evidence to support the contention that the chances of successfully rehabilitating ex-servicemen on the land are being prejudiced. The Rehabilitation Board will keep the position under close examination and take appropriate action warranted by developments. 110. In the report for the year ended 31st March, 1944, it was mentioned that some ex-servicemen had expressed an interest in co-operative farming, and that the question of giving this form of settlement a trial in New Zealand as a rehabilitation measure was under examination. The Farms Advisory Committee, after reading a comprehensive report 011 co-operative schemes in other countries, concluded that they would be of little interest to New-Zealanders provided they had the choice of other forms of settlement. However, to test the attitude and provide a reliable guide for the Advisory Committee, letters were addressed to the nine hundred ex-servicemen at that time awaiting settlement inquiring whether any would care to participate in such a scheme and asking for general comments. Only sixteen replies were received, and the majority of these were unfavourable to the proposal. The Committee therefore decided to take no further action. The Committee, however, favours the formation of co-operative groups among closely located ex-servicemen farm settlers to own and operate farm machinery, particularly power machinery. If such groups can operate successfully there will be a considerable saving in the capital outlay per unit in respect of farm machinery, and as such machinery as is available is modern and efficient there should result a considerable annual saving per unit in cultivation costs. 111. At the 31st March, 1945, 1,136 men who had been declared eligible for assistance under the Board's Settlement Scheme and who had been graded "A " were awaiting settlement. Not all were particularly keen to obtain properties immediately, having settled down in suitable employment and preferring to wait a favourable opportunity of acquiring the right property in due course. 112. To the 31st March, 1945, a total of 104,037 acres had been the subject of successful negotiations for purchase for subdivision, although possession of all this area had not been taken at that date. The need for more land is still great, and the Board is anxious that owners of properties capable of subdivision which can be closely settled without a great deal of further development should come forward with offers to sell either the whole or surplus areas. 113. The Department is co-operating closely with the Organization for National Development in regard to rural planning, and its policy in regard to the more specialized types of farming will be based largely 011 the research carried out by this body. SECTION XI. —FINANCIAL] ASSISTANCE (i) Loan Facilities 114. Table XV of the Appendix shows the totals of rehabilitation loan authorizations from commencement to 31st March, 1945, with, in parentheses, the corresponding totals for the year then ended. It will be noted that the total at 31st March, 1945, stands at £6,507,574, as compared with the total at 31st March, 1944, of £1,972,740, an increase of £4,534,834 for the year under review. 115. The effects of decentralization by the delegation of authority for loan authorizations to District Executive Committees, which is mentioned elsewhere in this report, are not appreciably noticeable in the year under review, as the finalization of relative administrative details has only recently been completed. It is.anticipated, however, that the new procedure will considerably expedite the handling of applications and facilitate speedier settlements. 116. The following is a summary of loan limits and interest rates applicable to the various types of loan granted by the Board :— (а) Tools of trade .. .. .. Limit, £50 ; interest-free. (б) Furniture .. .. .. Limit, £100 ; interest-free. (r) Business .. .. .. Limit, £500 ; interest, 4 per cent, per annum. (d) Farms — Going concerns — Dairy .. .. .. Limit, £5,000 ; interest, 3 per cent, per annum. Sheep .. .. .. Limit, £6,250; interest, 3 per cent, per annum. Stock only .. .. .. Limit, £1,500 ; interest, 4 per cent, per annum. (e) House .. .. .. . . Limit, £1,500 ; interest, 3 per cent, per annum. In the case of business, farm, and house loans interest for the first year is reduced to 2 per cent, per annum. In certain circumstances applications for business loans in excess of £500 will be considered, particularly when the venture is regarded as of national value and the finance required cannot economically be arranged on a partnership basis.

11