THE BUREAU OF INDUSTRIES

Press, Volume LXXII, Issue 21802, 6 June 1936, Page 18

THE BUREAU OF INDUSTRIES

HEADS OF DEPARTMENTS APPOINTED [From Our Parliamentary Reporter.] WELLINGTON, June 5. The Minister for Industries and Commerce (the Hon. D. G. Sullivan) announced in the House of Representatives that the Bureau of Industries consisting of the following members had been constituted: Mr L. J. Schmitt (Secretary Department of Industries and Commerce), Mr A. Tyndall (Under Secretary of Mines), Mr G. H. Mackley (General Manager of Railways), Mr A. H. Cockayne (DirectorGeneral of Agriculture), Mr J. S. Barton. S.M. (Chairman of Bondholders’ Commission). Mr A. D. McGavock (Director of Forestry), Mr E. D, Goode (Comptroller of Customs), Dr. E. Marsden (Secretary of Department of Scientific and Industrial Research). Mr G. C. Rodda (Secretary to the Treasury), Mr J. S. Hunte# (Secretary for Labour), Mr G. A. Pascoe (Industries and Commerce Department).

a rigid adherence to regulations, ‘‘The bill will expire on September 30 next year,” Mr Mason said; “but long before that date the Government intends to institute a housmg scheme for building hundreds and thousands of houses in New Zealand. When that is done, the need for this legislation will diminish.”

Lack of consideration oy the Government for the owners of house property was alleged by the leader of the Opposition <the Rt. Hon. G. W. Forbes). Under the bill, he said, some unfortunate landlords would have to shoulder the responsibility of the State and provide social service by carrying these tenants who were unable to pay the fair rent. The bill would discourage house-building as an investment for private capital at a time when houses were badly needed. “All will agree that everything possible should be done to prevent rackrenting,” said Mr Forbes; “but at the same time the Government should not go to the extreme and do anything that will prevent people providing houses at the present time. It is only misleading people to say that this legislation is only for one year. It would be better to fix a definite and reasonable time, so that people prepared to invest money in the building of houses will know when the legislation will be removed." Reduction in Rentals Mr Forbes recalled that a 20 per cent, reduction had been made in rentals during the depression. Surely landlords should be allowed to participate to some extent, at least, in the general improvement in conditions. There were periods when houses were empty and when landlords received no rent at all through tenants being unemployed; but no account was taken of these difficulties experienced by owners ' of house properties. The Year Book showed that rents were still very much below the 1929 level. “This bill is intended to tide us over the difficult period made for us by our predecessors,” said the Prime Minister (the Rt. Hon. M. J. Savage.. “It has been stated that the bill throws an unfair onus on landlords, but there are two parties to every contract, and both are entitled to consideration. I cannot imagine a magistrate who is considering a rent application giving his decision without giving thought to the rights of the house owner. The members of the Opposition have complained about the provision for inspectors of factories to conduct the cases of tenants in courts. I see no reason why the insnectors should not represent landlords, and we can get someone else to represent the tenant. “The house-owner’s interests would be conserved just as much as those of the tenants,” Mr Savage continued. He said that what might appear to be injustices would probably happen, but where mistakes occurred they would be rectified. The Government could not clean up the unholy mess left for it by its predecessors in a few weeks. He could assure the leader of the Opposition. however, that wherever service was available the Government was going to make use of it for building houses. It would not wait for anybody or anything. “Unfair Burden on Landlord” “This bill throws an unfair burden on the landlord,” said Mr W. P. Endean (Nat., Parnell). “The Government has embarked on a policy of inflation, and I think the rental should be based on the principle that the landlord should receive a rent having regard to the inflation that will exist in the Dominion.’’ Mr F. W. Schramm (Govt., Auckland East) explained that it had been unnecessary to extend the protection of the bill to rents above £2lO a year because people who could afford to pay more did not need protection. “The Government knows very well that this bill is only a palliative,” Mr Schramm said; “but during a period of transition from an extreme form of capitalism to a form of socialism it is necessary to erect a bridge to span the gulf. In the meantime, the bill protects tenants and landlords against unfairness.”

Dr. D. G. McMillan (Govt., Dunedin West) said the rent restriction legislation resulted from a national calamity and the failure of ■ the authorities to realise that housing was a social service. Such legislation was needed as long as the supply of houses remained inadequate.