STATE HOUSING.

Auckland Star, Volume LXXI, Issue 100, 29 April 1940, Page 6

STATE HOUSING.

"Jay See's" explanation of the method by which State housing , is financed is just what I expected. He states as follow?: "The Government instructs tie Reserve Bank to make available credits for State housing. The advances are iu=ed to create houses. The assets cannot be sold, so that the houses and the interest earned lielonjr to the State —the people."' Xow the jmint in issue is the method by which the credits are made available to the Hnii-inir Department, and on this '".lay See" i> sil-ent. He knows perfectly well that he does not explain this by statins that tie advances are used to build house- —that the houses cannot he sold—that they belonjr to the State. He mipht jnst as well have said that people live in the houses and have a bath every Saturday niirhi. Since "Jay See" , makes no attempt to disprove my r-tatement that the Treasury borrows the money for housing at 4 per cent from t'ne Reserve Bank and relends it at than half that rate of interest -<> the Housing Department, and at the same time makes no attempt to explain tho method of finance used. I take it that be must have made inquiries and ha\e a~.-t-rtained that my statements are true and are taken from an official statement on the very point. W. GRAY.