RESTRICTIONS ON BUILDING

Press, Volume XCIII, Issue 27914, 10 March 1956, Page 2

RESTRICTIONS ON BUILDING

EARLY RELAXATION UNLIKELY MINISTER’S ADDRESS TO BUILDERS (New Zealand Press Association) NELSON, March 9. Relaxation of building controls in the immediate future is extremely unlikely. This was made clear by the Postmaster-General (Mr T. P. Shand), who flew from Wellington to attend the annual conference of the New Zealand Master Builders' Federation. Various aspects of the “credit squeeze” were explained by Mr Shand, who said that if the steadvin® down in the expansion of the building industry was reflected in other industries over the next few months it would go a long way toward solving the Government’s problem, though he seriously doubted whether it was enough.

Mr Shand said there had been a great deal of talk in the last few months about the “credit ‘ squeeze.” The building industry was not the only one in which individuals from time to time prophesied disaster. The “credit squeeze” was not a purely New Zealand phenomenon; it was being practised in almost every country today with varying intensity and varying success. Pressure Underestimated Unfortunately it had to be said that the Government had underestimated the pressure needed to make that slight adjustment. There had been steadily increased pressure for more than a year but still the drain went on. Unless the “squeeze” was effective before the overseas reserves were seriously depleted—as, for example, Australia’s are—the Government would be forced to adopt again the expedient of exchange control and perhaps import control. These did not cure anything. they were drugs of addiction, said the Minister. The building industry, continued, Mr Shand, was particularly sensitive to the policy of tightening up credit. It should give the fiist indication of the pressure taking effect, so the Government was watching the building industry very carefully. Mr Shand said that at the same time as the Government was trying to curb building activity, it was building up a big backlog of jobs. He alone had several million pounds worth of post offices he wanted to build, but he saw no hope of getting them built.

When the materials and labour were available the Government would open up a stream, but in the meantime he appealed to master builders to help the Government. If it could get £25,000,000 more production without any increase in wages, it would have solved the problem.