HOUSING SCHEME.

Auckland Star, Volume LXVII, Issue 106, 6 May 1936, Page 5

HOUSING SCHEME.

HOME§ FOR WORKERS.

GOVERNMENT ASSISTANCE. TASMANIA'S SYSTEM. (By Telegraph.—Press Association.) WELLINGTON, this day. In view of the Rt. Hon. M. J. Savage's recent announcement regarding housing in New Zealand, housing activities elsewhere are of interest, and the Minister of Agriculture and Forestry in the Tasmanian Government, the Hon. R. Cosgrove, who arrived by the Wanganella to-day, was able to give an outline of what his Government was doing. There was a housing shortage in Tasmania, Mr. Cosgrove said, and the Government realised that workers could not build homes for themselves without assistance. A housing scheme had accordingly been formulated and was working in a most satisfactory manner. The Government advanced 90 per cent of the value of a home and the worker was expected to find the other 10 per cent. Repayments were spread over 42 years for stone and brick houses and over 30 years for hardwood buildings. Interest was charged at 4J per cent, and 1 per cent was added as repayment.

In addition to interest and repayment payments made by the worker, any home owner could pay £5 or multiples of £5 into a fund administered by the Government. These amoimts were not regarded as repayments of principle but as savings against unemployment or other future difficulties.

The Government j>aid 5 per cent interest on all moneys paid in and the depositor could withdraw what he had paid in at any time. Although there was no restriction on withdrawals the main object of the-fund was to make interest and sinking fund payments and during difficult times this was observed in almost every instance. The Government did not allow workers to build home 3 they could not very well pay for out of their earnings. ' A limit was placed on the amount any worker could borrow and it was graduated according to the earnings of the borrower. The maximum amount that could be borrowed for one home was £1200, but the average worker was limited to £850 for building and land. Sections in tha suburbs of Hobart could be bought for £2 a foot, so a section with a 45-foot frontage was valued at £90. During the last financial year £50,000 had been spent on housing through the Government, and it was estimated that £100,000 would be spent during the present year.