“Stable Building Policy” Needed

Press, Volume CI, Issue 29764, 6 March 1962, Page 8

“Stable Building Policy” Needed

Before embarkinjf on a policy of. building curtailment the Government should study carefully the possible repercussions and. take heed of recent overseas results when building was reduced, said Mr J. C. Mackersey, president ot the Master Builders' Federation, in his presidential address to tine federation's annual conference in

Ghristoh'urch yesterday. “Last year w® ■ were told at Ministerial level that the industry was over-co®rUnitted. A report of the Treasury Department- and the Ministry of Works said the building industry was faced with an excess demand of £'l2m to £lsm, chiefly in the rapidly developing unban . areas. Against the Minister of Housing warned the industry in July, that a reduction in Government-sponsored building was esse..tiai and .advised us to consolidate rather than expand,” said Mr Mackersey.

A recent survey of builders, undertaken by the. federation, showed no signs of over-commitment.' However, an analysis of building activity did indicate a decline in the larger cities, a decline which has probably been more pronounced in recent months.

“It is a well-recognised fact that the economic barometer of any country can be measured by Ute stability of its building programme. With our rising population and high standard of living and the factual necessity of a future major capital works

| programme, building conIst ruction must proceed. It is in the national interest as; well as our own that the country’s construction requirements should and must keep pace witih development progress. “Major Problem” “A major problem which faces the building industry is that of Government which, with changing parties and their different policies, gives little help to any stabilisation. While the industry continues to be used for political purposes there will be a continuation of the stop-and-go economic climate, which has become all too familiar in the post-war years,’’ said Mr Mackersey. “Would it be unreasonable to ask that a more stable rate of economic growth be achieved in New Zealand?” asked Mr Mackersey, “In the case of economic recession the building industry would certainly be one of the first to suffer. The federation should be one group prepared to accept an important role in pressing for improved economic management of the country,” Outlining some of the benefits that would accrue if the building industry could achieve this end, Mr Mackersey said the industry could organise and plan ahead on the basis of a reasonably regular flow of construction work becoming available. The labour force could be stabilised. Workers could have reasonable assurance that there was a lifetime’s work ahead of them and labour shortages and turnover also would decline. He said that availability of materials would be more reliable, thus reducing the frustrations and delays inherent in times of shortage. “More Stable Profits” The financial requirements of the industry could be planned better, which would result in costs not fluctuating so widely and would allow more stable profits to be expected. Mr Mackersey said that where the amount of new construction work offering was in balance with the ability of the industry to cope, the inefficient firms would be under pressure to improve or get out. “Since the Second World War the building industry has continued to grow in size, but it appears that in the next few years the growth will be slower, and unless proper planning is undertaken by the authorities, there could be sudden falls which could cause serious hardship. “It would be unreasonable to expect that building be artificially stimulated. or maintained above levels the country can afford. But the industry can reasonably expect governments not to add to its difficulties by their own short-sighted policies,” said Mr Mackersey.

Mayor Opens Conference

The revitalisation of the inner part of Christchurch by an extensive building programme showed the important part builders played in the development of a city, said the Mayor (Mr G. Manning) when opening the annual conference of the Master Builders’ Federation in Christchurch yesterday. He said a city’s development could be judged by its building programme. Master builders not only took an important part in this development, but also in its planning. Mr Manning said the delegates were fortunate to be engaged in an industry where pride could be taken in the work. “It is a great thing to be able to be proud of something you have done yourself,” he said. Replying to the Mayor, the federation’s president (Mr J. C. Mackersey) said the federation was planning the introduction of a university chair of building construction and the University of Canterbury might be suitable.