4

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The tenure of the advances outstanding is as follows : — x , . Amount, dumber. £ On freeholds ... ... ... ... 2,760 773,530 14 6 On leaseholds ... ... ... ... 275 45,075 0 0 Total ... ... ... ... 3,035 £818,605 14 6 The average freehold advance is £280, and the average leasehold advance is £164. The advances granted during the year ended 31st March, 1910, mi freehold and leasehold are as follows :— XT , Amount. Number. £ _, On freeholds 1,172 332,772 11 10 On leaseholds ... ... 187 29,580 0 0 Total ... ... ... ... 1.359 £362,352 11 10 For the year the average freehold advance was £284, and the average leasehold advance £155. The total sum raised by the Government on debentures for investment on mortgage to workers is £823,500. Three thousand and thirty live mortgagors are now indebted to the Department to the extent of £818,605 14b; 6d. in reaped of principal moneys, an increase during the year of 1,230 mort gagors, amounting to £330.057 lis. lOd. The gross profits for the' year ended 31st March, 1910, were £2,353 3s. Sd., and the cost of management and expenses of the Department £957 Os. 9d., being 0"12 per cent., or 2s. sd. per £100, on the capital employed. The net profits amounted to £1,396 2s. lid. A sum of £6,285 has lieen added to the sinking fund established under section 30 of the State-guaranteed Advances Act, 1909, bringing the total amount standing to the credit, of that account to £7,837 17s. The approval of the Right Hon. the Minister in Charge of the Department has been given to the supply to intending borrowers free of charge of complete plans and specifications of various types of buildings costing from £200 to £650. This will enable workers to get the very best type of building for the money, paid, besides giving the Department much better securities for its loans. Even the smallest building of the set, containing only three rooms, will have a hot- and cold-water system, a bath, and most convenient internal arrangements. Two extra rooms can be added as a' lean-to at a cost of about £75, should the house be found too small after being occupied. If there is no water-supply, tanks at a reasonable cost can lie used for the system. It is desirable to shorten the term for repayment of loans to workers. No building society lends money for 36£ years. Twenty years is long enough where there is a possibility of a fall in values as where the town or village in which the property on which the moneys are advanced is situated is dependent on some industry with a limited life, such as mining or sawmilhng. Before the present long term fur repayment is past, some of these places may be deserted. In localities where the industries are of a permanent nature, or the future of the place is certain to be progressive, and the values of the property are not likely to recede, a longer period for repaying the • principal could be given. These figures will prove that a repayment term of twenty years would not press heavily on the borrowers: The average advance to workers is under £270. In twenty years a loan of that amount with interest at 4£ per cent., would be wholly repaid by instalments of Bs. per week. Even the maximum loan of" £450 would be extinguished in that time, together with all interest, by a payment of 13s. 4d. per week—not so much as many workers are now paying as rent for btiildino-s much inferior to those that can be obtained by borrowers from the Department The more quickly the money is repaid, the sooner some other worker will get the use of it To lock it up for too long a time is not advisable either from the lender's point of view, regardmg it as a security, or from the public-utility aspect of the matter. The thanks of the Board are due to Mr. Woburn Temple, architect on the staff of the Labour Department, who has drawn the plans and specifications for the use of future borrowers. His expedience in the erection of homes for workers under the Workers' Dwellings Act ,n different places in the Dominion was most valuable. The reason why a type of building costing £650, being £200 above the maximum authorized to lie lent to workers, is included in his selection, is that some applicants may have some money saved and would add it to the maximum amount obtainable in getting a better home than could be built for that amount, From the number of small sums borrowed from he Department in the past many of the dwellings erected must be little better than whares. With the new system a much better kind of home will be common; and the instalments of principal and interest required to discharge the loan on it are so reasonable that they will be a very light burden. J. W. Poynton, Superintendent. State-guaranteed Advances Office, Wellington, 19th July, 1910.