Government To “Overhaul” Leasehold Sections Scheme

Press, Volume XCIX, Issue 29367, 21 November 1960, Page 16

Government To “Overhaul” Leasehold Sections Scheme

(New Zealand Press Association)

AUCKLAND, November 20. The whole of the State-spon-sored insurance-leasehold housing scheme would be overhauled because cei’ain i«nd speculators were trying to take advantage of it. said the Minister of Housing (Mr Fox) in Auckland today. He said he hoped to be able to make a further anoUncement this week. He said the. State Advances Corporation would honour commitments made by it for annroved sections under the insuranceleasehold scheme. There was no intention of cancelling these approvals or commitments and the corncyation woul<V continue to deal with organisations already approved provided , and cost fa"‘ors were reasonable. As far as the small builders were concerned. Mr Fox said he appreciated that, in many cases thev drew their suppliers of sections from the large development companies and wore conoorpod as to how thev might he affected. . With existing section ann’-oval" those builders would not be affected ad-errelv bv the Government’s decision and he proposed to give special considera-

tion to ways and means of helping them with their problems.

Mr Fox said he felt that it was not proper for the scheme to be used by speculators or by organisations operating solely for profit without being engaged themselves in some way in the production of homes at reasonable cost. The investment companies were at liberty to carry on their proposed business as investors in 'and. said Mr Fox. but it was significant that when thev were told thev must sell their output of sections on a freehold basis, and that they could not make use of the insurance-leasehold scheme they referred to the injustice of their exclusion and indicated that ♦he Government’s decision would have severe financial effects on their operations. It was apnarent that these organisations had been expecting to use the Government's insuranceloncehnld scheme as a means of obtaining the highest possible nrices for sections and to ens>’re sneedv turnover, he said. Obvini’sly these facilities would be worth a event deal to the companies concerned.