BUILDING ACTIVITY.

Auckland Star, Volume LXVI, Issue 243, 14 October 1935, Page 6

BUILDING ACTIVITY.

In statement on the results, of the building subsidy schemes, so far the 3linister of Employment has naturally put the best construction on the figures, but even if it be held that much of the work put in hand by the aid of the subsidy •would have been started in any case it must be recognised that the grants made by the Board have led to more widespread and more rapid development of building activity than would have occurred otherwise. Judged by the cost, the building subsidies must be accounted as among the most successful of the Board's methods of dealing with unemployment. Skilled craftsmen, who were among the early sufferers from the depression, have found their skill again at a premium, and the benefits are by no means confined to those engaged upon the subsidised works, bat spread right through to bnsinesses of many kinds. A stimulus applied to building produces probably a greater amount of indirect benefit than an equal stimulus to any other industry. This makes it more difficult to assess the benefit accurately. Do the employment figures include all additions to the staffs in joinery factories, in timber mills, in brick and tile making, and so on ? The total of over 34,000 men stated to have been given steady employment at standard wages since the building subsidies : were first granted looks large, but when it is remembered that a substantial proportion of the value of £4,057,000 in permits issued in the Dominion during the twelve months ended August probably comes under the Board's classification of assisted works the figure is understandable.

Since the subsidy as now granted on dwellings came into operation fifteen months ago there has been an increase of nearly 50 per cent in house building as compared with the year before, and a particularly good feature of this improvement is that the increase has been steadily upward, with no sign of slackening at any time over the period. A The Board says that it has already approved _ 6500 applications for grants on new dwellings, and the flow of requests continues to be rapid. When it is noted that the number of permits issued monthly immediately before the subsidy fell nearly to 100, 'the extent of the revival is obvious; nor is it fully revealed by these figures, for many of the houses now being planned or built are of a more expensive type than a year or two ago. That house building alone, according to the Minister, has provided employment (presumably direct and indirect) for over 27,000 men - is certainly an impressive fact. And the cost to the Board is set down at the comparatively modest sum of £360,000. Some of this expenditure could be criticised on a detailed analysis, but the Board, not being able to find a perfect scheme, has had to choose one with the fewest weaknesses. It can fairly claim to have made a valuable contribution toward recent recovery and to have given large numbers of men the opportunity to win back their independence-