HOUSING CONFERENCE DECISIONS

Press, Volume LXXXIX, Issue 27112, 7 August 1953, Page 10

HOUSING CONFERENCE DECISIONS

Finance For Building; Size And Price Of Sections

(Neto Zealand Press Association) WELLINGTON, August 6. Recommendations on housing finance, size of sections, and the stabilising of prices for sections were among the decisions reached by the national housing conference today. The major decision on housing finance was in the conference’s approval of the Government’s scheme, outlined by the Acting-Prime Minister (Mr K. J. Holyoake) at the opening of the talks, for the State guaranteeing of mortgages.

It agreed, too, that the minimum area of sections in rural areas should be 20 perches, compared with the 32 perches now stipulated by the Land Subdivision and Counties Act, and that the Government and local bodies develop and offer for sale sections in areas where the demand could not be met.

The Government’s mortgage guarantee proposals, said the Minister in

charge of the State Advances Corporation (Mr J. R. Marshall) had been endorsed by the Associated Savings Banks, the Building Societies’ Association, and the Life Offices’ Association, which would be principally affected by the scheme. The conference agreed that as a

general rule the terms of loans should not exceed 30 years, but that in special circumstances the Government’s proposals for longer terms might be practicable. The Government was prepared in appropriate cases to extend the terms for housing loans to 35 or 40 years, -with provision for interest rate adjustments at fixed periods. It also recommended that the Government examine a proposal for loans providing the repayments to be based on the repayment of £5OO over 15 years, with provisions for refinancing at the end of that period. The conference urged the Government to give a lead in encouraging methods of saving and thrift among young people, with special emphasis on the provision of a housing account. Size of Rural Sections

It was agreed that a hard and fast standard size could not be laid down for housing sections because the minimum varied in different areas according to the nature of the soil and requirements of public health, but it was felt that in rural areas the minimum area of subdivision should be redused to 20 perches, with a 50ft minimum frontage. The Minister- of Industries and Commerce (Mr J. T. Watts) told the conference that the general committee had considered the present minimum rural subdivision requirement of 32 perches excessive, particularly where the areas adjoined dense urban residential areas. It was also agreed that the powers of municipalities should be extended to permit them to lay down streets of 50ft w’idth or more, provided a building line of not less than 33ft from the middle line was observed. Mr Watts said the general committee had been informed that municipalities were keen to assist in subdivisions to make more housing sections available, provided their efforts were facilitated and they werq given all the necessary powers. To stabilise the local price of building land, the conference urged both the central and local governments to develop and offer sections for sale for housebuilding where the demand pressed too heavy on the supply. The general committee reported a tendency among subdividers to delay the sale of sections because of the heavy incidence of income tax on large subdivisions, and the conference recommended the Government to consider the problem. Subdivision Services Mr Watts said it had been considered impracticable for the committee to define the technical details involved in the services for subdivision. It had therefore recommended that the Government call a series of meetings between local authorities and Government departments concerned to consider details of specifications for various types of services for subdivisions. and means of spreading subdivisional costs. The recommendation was carried by the conference. The Labour Department was requested by the conference to pursue an active policy to obtain skilled craftsmen. particularly plasterers, bricklayers, plumbers, and painters, from overseas. It also recommended that the Government and employers and unions initiate a publicity programme to endeavour to obtain the full quota of apprentices for the building industry.

HOUSING BODY PROPOSED CONTINUATION OF WORK OF CONFERENCE (New Zealand Press Association) WELLINGTON, August 6. An organisation to carry on the work of the housing conference should be made up broadly by the types of organisations involved in the housing, problem, said the general committee of the conference this afternoon. It suggested a body on which the following organisations should each have one representative: building industry employers, building industry employees, municipalities, counties, Institute of Architects, Institution of Engineers, private lending institutions, building suppliers’ organisations. State Advances Corporation, Ministry of Works, and Treasury Department. The acting chairman of the committee (Mr J. T. Watts), in summing up the opinion of the committee, said that such an organisation should have one Minister to report to, should have a small permanent secretariat, and should be financed largely by the industries. It was little use having just another Government department. In his opinion the organisation should be an advisory body to the industry and to the Government. Executive power should remain with the Government.