“Housing Shortage Being Overtaken”

Press, Volume CI, Issue 29798, 14 April 1962, Page 12

“Housing Shortage Being Overtaken”

(From Out Own Reporter) WELLINGTON, April 13. The fact that the number of building permits in many areas was declining must mean that the shortage of houses was being overtaken, said the Minister of Housing (Mr Rae) tonight. He was replying to a claim made at St. Albans this week by Mr Nordmeyer, Labour M.P. for Island Bay. that Government action had depressed the building trade.

“When the Labour Government instituted 3 per cent., loans and the capitalisation of family benefit, it gr.ve a tremendous stimulus to the building industry.” said Mr Rae. “People who could not have built for years while they were accumulating this necessary deposit were able to take advantage of this extra and cheap finance. “As was to be expected, there was a rush of applications and the number of houses built reached an alltime peak figure. It was also to be expected that this demand would flatten out as urgent needs were met. Such has been the case. “This Government has continued the 3 per cent, loans, and the capitalisation of family benefit and these schemes are available to all who wish to use them. There has been no variation in the rules for eligibility. "It is under these unchanged conditions that housing permits have fallen in the main centres from 14,035 in 1960-61 to 12.977 in 1961-62. as pointed out by Mr Nord-meye-r. The latter figure is the same as the number of permits for 1959-60, the previous record year, but is greater in value.”

Mr Rae said a strong case could be made for the resumption of lending by the State Advances Corporation on the many hundreds of good houses for sale throughout New Zealand. “But the Government,

mindful of the need for a healthy building industry has made no changes in

lending policy. This is supporting, not depressing, the building industry,” he said.