Labour Switches Attack To Costs Of Housing

Press, Volume CIII, Issue 30591, 6 November 1964, Page 12

Labour Switches Attack To Costs Of Housing

The sharp and uncontrolled rise in the price of housing was the theme of the Opposition attack in the adjournment debate in Parliament tonight.

The Government, obviously prompted by at least four previous Opposition attacks on the cost of living, replied in general terms on price rises.

“A house of 1000 square feet cannot be obtained in the capital for under £5OOO —and there is no shadow of doubt that the Government is doing nothing about it,” said Mr W. A. Fox (Opp., Miramar).

Since 1960, Mr Fox said, building costs had risen 20 per cent, and rents had gone up 33 per cent. Valuations showed an increase of 100 per cent over 1959. ‘‘My own section is valued at £4OO more than it was then,” Mr Fox said. Government voice: Can you sell it for that? Mr Fox: I don’t want to sell it —I want to live there. Mr Fox said that a young man getting married in Wellington needed £2OO0 —and then he had to borrow £3OOO more before he could buy a house. Cost of Living The Minister of Agriculture (Mr Taiboys), clearly anticipating a cost-of-living debate, said the Government Statis-

tician had been asked to break down the contributing factors in the increased cost of living. He had been asked to make a comparison between the years ending September, 1964, and September, 1958. This year an increase of 12.4 points in the consumers' price index was due to increases in wages paid to the people of New Zealand. The increase due to wages had only been about 5.3 points in 1958.

Indirect taxation had accounted for 39.6 points in 1958 increase, but for none at all this year, said Mr Talboys.

The Opposition claimed that interest rates were pushing up the cost of living, he said. Mr P. Blanchfield (Opp., Westland): So they are. Mr Taiboys: According to the Statistician, interest rates contributed two points to the increase in 1957-58 and 1.6 points in 1963-64. The sugar price had con-

tributed 11.3 points this year but had made a negative contribution in 1958. The price of sugar would come down, he said, and the index would come down, too. Programme Needed

Mr W. A. Fraser (Opp., St. Kilda) said the Minister of Housing (Mr Rae) was running around the country making excuses for not convening the National Housing Council. A new, over-all building programme produced by practical people, not by a council loaded with bureaucrats, was needed. Mr H. J. Walker (Govt., St. Albans): Costs have gone up because there has been an increase in wages. What we really need is more efficiency in the building industry and more output. Perhaps management is at fault. The Deputy Leader of the Opposition (Mr Watt) said that in the last year the cost of a two-bedroom house had risen by £237. of which only £lO9 was attributable to wage increases. “The rest was due to the Government’s policy of not maintaining stability.” Loan Limits Mr Rae said the Government had no proposal to increase State Advances Corporation housing lending limits. Mr Watt had asked what Mr Rae would do to help the working man get money to make up the difference between the amount he could borrow from the corporation and what he needed to build. Builders had made public statements on the recent wage rise, but that was where they were not prepared to hold costs, said Mr Rae. Perhaps those supplying materials could, by more efficiency, effect savings, and a study of the accounts of people in the industry would suggest that they could hold costs, in some instances by more attention to detail.