RURAL HOUSING

Ashburton Guardian, Volume 61, Issue 124, 7 March 1941, Page 6

RURAL HOUSING

VIEW OF COUNTY COUNCIL. REASON FOR NON-ADOPTION. DIFFICULTIES OF THE SCHEME. Tho remark made by Mr F. F. Reid (chairman of the Armed Forces Appeal Board) with regard to the Ashburton County Council’s policy toward the Rural Housing Act was the subject of a statement made by Mr IS. P. Taylor (chairman of tub Council) at the monthly meeting to-day. In a discussion Mr Reid said : “I see that the Ashburton County Council has turned down the rural housing scheme. That doesn’t look as if the Council is prepared to do much to help the farmers, does it?” “The scheme has been considered in detail by tho Council,” said Mr Taylor, “and a special committee was set up to investigate and report on it. This committee after full consideration placed the following difficulties before the Minister of Housing: 1. The security for the money advanced by the State Advances Corporation is a special rate over the County, while the Council’s security is the property on which the house is erected. The committee feels that this is unfair, and that the State should accept the same security as the Council; (2) The provisions of the Mortgages Extension Emergency Regulations, 1940, will affect any advances made by the Council, but will not relieve the Council of its obligation to the State; (3) Advances made by the Council might be subject to reduction by Adjustment Commissions without any relief in payment to the State; (4) The cost of the administration of the scheme is much higher than the amount allowed under the Act. On an advance of £BOO the Council’s allowance would be £4. At least four inspections of the building would be necessary at a cost of at least £8 to £10; (5) The present high building cost cannot be maintained. A fall in the value of buildings erected will affect the scarcity accordingly; (6) The erection of extra houses on farms will, unless large enough for subdivision, cause over capitalisation; (7) The Council’s security will he reduced by the depreciation in value of farm properties because of ever-increas-ing costs of primary production. “Although the Minister replied at length to the Council’s representations, the difficulties have not, in the Counopinion, been clarified, and it felt that it could not adopt the scheme under tho present conditions.”