B—l3

As in previous years, a return is appended showing arrears under rehabilitation loans as at 31st March, 1948. In last year's report unfavourable comment was made on the large number of furniture and tools of trade accounts in arrear, and, unfortunately, the position shows no improvement. Since this type of loan carries no interest charge and the principal repayments are modest in amount it is reasonable to expect a very low percentage of accounts in arrear. The reverse, however, appears to be the case, and it would seem that it is because they are interest-free that the borrowers concerned display a lesser sense of responsibility for the repayment obligations they have entered into. When viewed in relation to the average family income there is little justification for such a large percentage being in arrear and recommendations with a view to improvement in the position have been made to the Rehabilitation Board.

(1) Arrears as at 31st March, 1948, on Farm and Residential Loans

(2) Arrears as at 31st March, 1948, on other Rehabilitation Loan Accounts

Losses written off after realization of securities in respect of loans granted to returned servicemen under the rehabilitation scheme up to the 31st March, 1948, are shown hereunder:— For Year ended 31st March, 1948. Total to Date. Number. Amount. Number. Amount. £ s. d. £ s. d. Farm .. .. ..14 2,235 7 9 33 4,770 8 2 Residential .. .. 1 5 14 5 1 5 14 5 15 £2,241 22 34 £4,776 2 7 £ s. d. £ s. d. Business .. .. ..25 3,782 13 10 52 7,182 5 7 Furniture .. .. ..15 454 3 8 37 1,075 17 5 Tools of trade .. .. 5 17 10 1 12 109 4 3 Miscellaneous .. .. .... .. 1 14 0 0 45 £4,254 7 7 102 £8,381 7 3

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Accounts. Arrears. Percentage in Arrears Number. Principal Outstanding. Number. Amount. to Number of Accounts. Farm Residential 4,285 14,287 £ 15,914,870 16,125,565 156 392 £ 18,728 5,590 3-6 2-7 18,572 32,040,435 548 24,318 2-9

Accounts. Arrears. Percentage in Arrears Number. Principal Outstanding. Number. Amount. to Number of Accounts. Furniture Tools of trade Business Miscellaneous 23,295 334 3,061 176 £ 1,418,594 4,805 1,733,252 45,649 2,371 108 327 28 £ 20,030 902 26,088 367 10-2 32-3 10-7 15-9 26,866 3,202,300 2,834 47,387 10-5