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Wednesday, 23 November 1927

Senator REID (Queensland) . - Senator Findley has argued forcefully that the amount which will be available from the increase in deposits in the Queensland branch of the Commonwealth Savings Bank will not be sufficient to meet the requirements of this scheme in that State. The operations of thatbank extend over the whole of Australia, and my understanding of the position is that the amount which the directors may make available out of the increased deposits will bear a relation to the total surplus, and will not be governed by the surplus in any particular State. I should like the Minister to inform me if I am right.

Senator Sir WILLIAMGLASGOW (Queensland - Minister for Defence) [10.1]. - Senator Reid has correctly stated the position. I point out to honorable senators that 55 per cent, of the funds of the Victorian Savings Bank are invested in Commonwealth, State, and local securities, 17 per cent, in advances for homes and shops, 4.19 per cent, in advances on the purchase of land, 1.83 per cent, in mortgage securities, &c., that are not divisible, and the balance is held in cash, including deposits and accrued interest. It will, therefore, he seen that in Victoria a large proportion of those funds is invested in the Commonwealth, State and local securities, just as is the case in Queensland.

Clause agreed to.

Clause 8 agreed to.

Clause 9 -

An advance shall not be made by the Savings Bank to an authority until the commission is satisfied -

(a)   that since the passing of this act the powers of that authority in relation to housing have been increased so as to extend, in respect of that advance the existing facilities provided under the housing schemes of that authority in order to cover the matters hereunder specified (if the existing powers are not sufficient to cover those matters), that is to say -

(i)   by providing for the purchase of dwelling houses;

(ii)   by providing that the maximum amount which maybe lent by the authority to any one person shall be One thousand eight hundred pounds, and shall be ninety per centum of the valuation made, by or on behalf of the authority, of the property in respect of which the loan is made; and

(iii)   by omitting from the existing schemes any provision which excludes from the benefits of the schemes a person in receipt of an income (as determined by the authority) not exceeding Twelve pounds per week; and ....

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