Comment From The Capital HIGH-DENSITY HOUSING IN CITIES MAY GET PRIORITY

Press, Volume CIII, Issue 30575, 19 October 1964, Page 12

Comment From The Capital HIGH-DENSITY HOUSING IN CITIES MAY GET PRIORITY

(From Our Own Reporter) WELLINGTON, October 18. A more rigid control of house and flat-building and the channelling of finance into large-scale developments close to the centres of major cities are expected to be major parts of the economic and financial programme shortly to be announced by the Prime Minister (Mr Holyoake).

The programme will aim at reducing the volume of speculative building, while concentrating attention on slum-clearance, pensioner housing and high-density multi-storey construction.

This is believed to be the main reason why the Government is not prepared to call a meeting of the National Housing Council in its present form, nor to attempt to reconstitute it until the recommendations of the Urban Renewal Study Group are ready for examination. The Minister of Housing (Mr Rae) places the report of the study group ahead of any over-all “target figure” the National Housing Council might be able to produce. His view was indicated clearly at the annual conference of the Timber Merchants’ Federation at Rotorua last week, when he said: “Unless progress is made with the redevelopment of major cities, the future will see the further uncontrolled spread of housing into farming areas. I am hoping that the report of the study group will point the way to the redevelopment of our major caries, and it will receive the close consideration of my colleagues and myself. “It must be recognised that if the recommendations of this committee are acceptable to the Government, there could be a complete review of housing policy—almost certainly of the Government’s rental housing policy.” The non-functioning of the National Housing Council has produced a number of independent reports on the housing situation, all of which will have to be examined before the council meets again. Mr Rae has suggested a preliminary meeting to evaluate these reports—but this preliminary meeting will be one of statisticians only.

Differing Views Three reports on housing needs which are known to be on Mr Rae’s table are said to contain opposing points. One was compiled by the Government Statistician, one was prepared by a consultant employed by the sawmillers and timber merchants, and the third is a paper presented at the recent architects’ symposium.

Mr Rae hopes to put all these matters in form for reference to Cabinet within a few weeks. He believes many points will be cleared up by the time the House of Representatives rises, probably in mid-November, and that a meeting will be called as soon as possible after that.

Some sources predict a sub-committee to report on housing needs will be set up early in December, and that there might well be a meeting of the National Housing Council before the end of the year.

It is remembered, however, that an “early meeting” of the council was promised as far back as last March. Mr Rae said then that one of the tasks of the National Housing Council would be to fix figures in housing for the next five years.

At Rotorua last week, however, he said that “national housing targets” did not have to say in what form units had to be built. In this, his view was not far removed from that of the timber industry, representatives of which had suggested that regional figures of requirements would be more useful as a guide to development.

The over-riding factor, however, is that of finance. No point exists in establishing a “target figure” unless the finance exists to enable that figure to be reached. This is why the Government does not relish the prospect of direction by a non-Goverment authority which has no link with financial matters. Mr Rae said at Rotorua that he was concerned that the 15member council had only one Government representative—the Minister of Housing. He suggested that at least four Government agencies—the StatJ Advances Corporation, the; Housing Division, the Treasury and the Department of Statistics—should be represented, and that the total membership should not exceed the present 15. The council as at present constituted has a strong trade representation, which in the past has exerted some influence towards the provision of more houses for workers’ families. The council consists of delegates in eight groups. Builders have two, sub-contractors four (two each for employers and workers), building industry employees two (one from the Federation of Labour and one from the Carpenters’ Union), professional bodies one, local authorities two (one counties, one municipalities), suppliers’ organisations two, and financial interests and women’s organisations one each.

It may be noted that no Government department is represented, but that the trade union movement has five, possibly six, direct delegates. Certain important bodies have been omitted, and have accepted the fact—but any move to change the membership of the council is likely to provoke a violent reaction. Mr Rae has said the National Housing Council is big enough—but he proposes to add at least four and possibly six representatives of Government agencies to it. The question is: which halfdozen of the present dele-

gates must be dropped to make way for them? Government View Government intentions, as shown in what has been done this year already, are to continue with the building of State rental units at the present level, and to implement the loan programme at the present level for low-cost homes. There is no proposal, for instance, to match the rise in house prices by extending State Advances Corporation loan limits. Last financial year. 1548 rental units were built (approximately the same number as for the previous 12 months), and in addition. 2850 units became available for reletting. This rate has been maintained for the first six months of this year. The audited expenditure on new State houses last year amounted to £42.4 million, which has been about average for the last several years. The Government believes that the backlog of housing shortage has been largely overcome. As a proof of this. Mr Rae said that in the first six months of this year, 531 families declined offers of State house tenancies. Mr Rae believes the building industry has never been so busy. Tn the first four months of this year, the value of building permits stands £7.8 million above last year’s figure for the period. Lending on approved existing houses was recommenced on March 25. At the end of August there had been 466 such loans. The capitalisation of the family benefit is also still showing an increase. The mortgage guarantee scheme, where the Government guarantees the difference between normal lending limits and 85 per cent of the value of the property, has already resulted in 1000 properties changing hands, for a total Government guarantee of £300,000. Under the local body scheme (wherebv the Government finds the cash by way of subsidy and lowinterest loans), some 864 pensioner flats were approved or under construction at the end of July and 326 more were under consideration.

This is the pattern, together with the development of multi-storey flats on newlycleared urban sites, against which the Government wishes to promote its newer systems of financing. The Government argument is that it will require, more careful planning, and that this must be backed by a guarantee of finance for the projects approved as most worthy. The National Housing Council has a most important role to play in the development of the over-all plan—but it is obviously not the council as it exists today.