H—lB

seem as if borrowers pay little regard to their obligations when the loans are on an interestfree basis. The following table sets out the position of these interest-free loans as at 31st March, 1950 :

Greater pressure has been exerted over the past two years on borrowers who have been granted interest-free loans in order to prevent a deterioration in the position. SECTION X—BUSINESS LOANS AND SPECIAL ARRANGEMENTS FOR EX-SERVICEMEN (i) General 59. The interest of ex-servicemen in establishing their own *businesses has not diminished, and the year has seen another 1,414 rehabilitation business loans authorized, aggregating £910,091. Table 111 of the Appendix shows the total number of business loans to the 31st March, 1950, under the main headings. 60. The soundness of propositions upon which rehabilitation business loans have been granted is exemplified by the relatively small losses which have had to be written off on account of ventures failing. At 31st December, 1949, losses represented 0-385 per cent, of the total loan expenditure. 61. The most spectacular group effort for establishing of ex-servicemen in retail businesses has been at Mangakino, where all the shops, except the Consumers' Co-operative Society Store, are let to ex-servicemen tenants. The ex-servicemen have an excellent opportunity to become soundly established in independent businesses, and the layout of their shops, which in some cases compares favourably with the best city shops, is an indication that the ex-servicemen are endeavouring to provide residents with a good class retail service. By arrangement with the Ministry of Works, housing loan assistance up to a maximum of £750 has been made available to shopkeepers in the township for the erection of suitable married accommodation where such has been required. The town of Mangakino is situated on land the subject of a Maori lease, and in granting housing assistance the Board has drawn the attention of ex-servicemen concerned to the limited tenure available. (ii) Licensed Industries 62. There has been a falling off in the demand for licences by ex-servicemen for establishment in licensed industries, except for licenses under the Transport Licensing Act, 1949. 63. In the transport industry 675 loans were granted during the year, and 614 licences (189 taxi, 64 passenger, 339 goods, and 22 rental) were granted to ex-servicemen by Transport Licensing Authorities. These figures include all ex-servicemen applicants whether or not they were sponsored by the Rehabilitation Department. 64. The Bureau of Industry granted licences to 58 ex-servicemen for petrol reselling, 8 for pharmacy, and 1 for the manufacture of paua-shell articles for resale.

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— Number of Accounts. Principal Outstanding. Number in Arrear. Percentage in Arrear. Amount of Arrear?. Amounts Written Off. Furniture Tools of trade 32,735 239 £ 1,561,713 3,598 3,217 70 9-8 29-3 £ 24,987 579 £ 2,493 203 Totals 32,974 1,565,311 3,287 25,566 2,696