HOUSING.

Auckland Star, Volume LXVIII, Issue 293, 10 December 1937, Page 10

HOUSING.

STATE ADVANCES. SALARY LIMIT REMOVED. PROBLEMS DISCUSSED. (By Telegraph.—rnrHamentnry Reporter.) WELLINGTON', Thursday. Many aspects of the housing problem were discussed in the House of Representatives to-day. when the Minister in Charge of Housing. Mr. Nash, moved the second reading of the State Advances Corporation Amendment Bill. The Minister said that although the salary limit for special housing loans had been removed by the bill the loans were restricted to a sum of £12">0. Under the principal Act the s|tecial loans were confined to persons receiving less than £t> a week. "Any person applying under this bill for a special loan can obtain one irrespective of his income." lie explained. A special loan was one issued in excess of the usual liti 2-3 per cent advance, the sum in excess of that proportion being guaranteed by the State. "There will be a further provision for a limit of the special loan advance to £12"><» so that it is still really confined to those on the lower income level," he continued. "Persons building a house costing £5000 can borrow up to ttO 2-3 per cent, but they cannot get the special loan with all the advantages that go with a special loan." The Minister said the provision in the bill giving the State authority to erect shops and public buildings in housing areas was i.ot included with the intention of bringing the .State into competition with private enterprise. There would be no interference with existing buddings or properties. Shops would not be built in areas where the needs of the public were being adequately met. The State would have power under the bill to fix the rentals for all State dwellings. There-was nothing the State would not do to provide the maximum benefit for rural workers.

Important Institution. The Leader of the Opposition. Mr. Hamilton, said the Stats-Advance* Corporation was one of the most important institutions in Xew Zealand, having over £.~>»>,(!<K>.ooo under its control. Last year its net income amounted to £4t>7.000. The Government failed to see the difference between the corporation functioning as a useful State institution and the State entering into a scheme of building houses to let. There were certain things that it was advisable that the State should do. but the building of houses to rent to people was not oHe of them. The Minister of Finance. Mr. Xash: The • previous- (»overnment went in for , housing. Mr. Hamilton: It soon went dut again. | It was debatable whether it were wise for the Government to take power to build shops, libraries and public halls, continued Mr. Hamilton. The Minister: It is only in respect to land set apart for the purposes of the Housing Act. Mr. Hamilton said one of the difficulties to be faced was the trouble that might arise from the building of too many houses in the cities. Xew Zealand should avoid building up large cities on an equai with Melbourne and Sydney. What was necessary was a large rural population. The State was rapidly becoming the sole landlord. "If the Government took a register to-day to ascertain the number of building tradesmen who had gone to other occupations it would be surprised at the result," he continued. Mr. J. A. Lee (Government, Grey Lynn): Would you advocate conscription of labour?

Mr. Hamilton replied in the negative. The fact remained that building tradesmen had gone into other occupations. Before the Labour Government came in the private building of houses was proceeding well. Houses 20,000 Short. The Minuter: That is why there were 20,000 houses short. Mr. Hamilton said it could be calculated that 20.000 men were needed for the farms. Many small builders would not work for contractors. The State had entered into unfair competition with the builders. It received its money at 1J per cent and private enterprise could not compete against that. The Under-Secretary of Housing, Mr. Lee, said adequate housing was as important as, for instance, good health land good education. There were problems which could not be dealt with until sufficient houses had been provided for all the people who would be displaced. Slum clearance could not be dealt with by private enterprise nor under the present legislation. Earning Over £6 a Week. In reply to Mr. J. Hargest (National, Awarua), Mr. Nash said the bill legalised the position where people earning over £6 a week were occupying State houses.

Amplifying his statement when the second reading debate had raised many questions on the subject, Mr. Nash explained that where a loan was asked for the erection of a house up to £1250 the Advances Department would keep a check on the land prices and the construction of the building and it would supply standard plans and specifications from the Housing Department. Another facility for those desiring to build their own homes would be higher payments on mortgage for the first five years or so with the idea that the owner would soon get the equity in his property. Then the mortgage would be readjusted.

The Advances Corporation would not allow these homes to be transferred at a profit, Mr. Nash said, but if the mortgagor had to move to another town it would endeavour to arrange an exchange. The property must he used by the applicant and there would be no sub-letting for profit. No salary bar would be imposed and loans would be up to the limit of £1250.