Building Slump Forecast

Press, Volume CIV, Issue 30839, 26 August 1965, Page 3

Building Slump Forecast

(N.Z. Press Association) HAMILTON, Aug. 25. The president of the Master Builders’ Federation (Mr R. G. Alexander) today predicted a slump in the building industry.

The quantity of building work deferred under the Government’s stabilisation scheme had so far exceeded the industry’s most pessimistic forecasts, he said. Architects and builders’ representatives would wait on the programming committee within a fortnight to ask it to “go lighter on the red pencil.” “Since it started operations, the programming committee has deferred building work valued at £6 million —an average of £1 million a week or nearly 20 per cent of the national building output in the commercial sector,” said Mr Alexander. “We trust deferment will not continue at this level. And both architects and builders’ representatives will meet the building program-

mer, Mr R. F. Paris, within the next two weeks to discuss

the type of work deferred. “It is difficult to understand the Government’s attitude towards the industry. “The only major items

which have to be imported are structural steel and roofing iron—the rest is locally • manufactured and there is no ■ drain on overseas funds. “If any industry should be allowed free rein then it

surely is the building industry, because the greater part of its materials are homeproduced.” Mr Alexander said his federation took a “dim view” of the Government’s recommendations to lending institutions to put money into Government stock rather than into building projects. This could dry up finance for development projects and better class housing.