HOUSING SHORTAGE

Auckland Star, Volume LXXIV, Issue 197, 20 August 1943, Page 2

HOUSING SHORTAGE

(To the Editor) It is only too apparent that nearly every present-day shortage in sup. plies has been brought about by Government interference in a particular industry. Another exemplifi. cation of the harm that can b e wrought by too much Government in business and too little business in Government. Take only one example, housing. During the depression years the Coates-Forbes Administration wisely introduced legislation to assist and rehabilitate the building trade, which had suffered more than any other. A subsidy of 5 per cent was offered the builder or owner on houses to be built up to a value of £1200. This, as we all know, worked splendidly and new houses were started almost immediately. The cost of house building in those days was from 12/6 to 15/ per square foot of floor space. Soon after 1935 the subsidy referred to was modified to apply only to houses costing under £750 The next move of the Labour Government was to completely withdraw the subsidy. It then entered the building field in its usual extravagant fashion, at one stroke killing speculative building and sending prices soaring to as high as 25/ per square foot of floor space. Had this Government encouraged the building trade instead of interfering with it the housing position would have been different to-day. Both building materials, of which-this country has unlimited quantities, and finance on an extended advances to settlers scheme could have been made available. It is not too late to do something of the kind now in spite of the shortage of (young) manpower. The restrictive legislation being introduced at the moment can only aggravate * the position. When all is said and done owners cannot be forced to sell. Experience has taught us that when a commodity is in short supply (through bad management) the only cure is to step up, not control, production. NEW ERAH.