Alarm In Building Trade

Press, Volume CVI, Issue 31290, 9 February 1967, Page 3

Alarm In Building Trade

(N.Z. Press Association) AUCKLAND, Feb. 8. Criticism of the

Government’s failure to increase State Advances Corporation loan limits for hous-

ing, and alarm at the drop in permits issued in Auckland, came today from the Auckland Master Builders’ Association, after its first meeting of the year. Mr G. F. Knowles, the secretary of the association, said that the Government’s attitude was “totally unrealistic.” He was commenting on a letter received from the Minister of Housing (Mr Rae) answering a plea by the association for increased housing and section loans. These, said the association, were promised during the Government’s election campaign. Mr Rae replied: “No election policy planks in any field have yet been approved by the Government which, at present is making a comprehensive survey of the economy. Housing policy will be considered in this context."

Mr Knowles said: “The longer this procrastination goes on, the more serious the situation will become, not only for the building industry, but tor the public.”

With its increasing population, Auckland was in a serious position. Permits for new houses and flats had dropped seriously in the period from April to November, 1966 (the latest period for which statistics were available), compared with the figures for the same period of the previous year. Housing finance must be considered by the Government in relation to all other sectors of the nation’s economy, the Prime Minister (Mr Holyoake) has told the New Zealand Master Builders* Federation. Th»> federation recently

drew the attention of the Prime Minister to a recommendation made by the National Housing Council last October that State Advances Corporation loan limits should be increased by up to 20 per cent, with some relation to “district differential” in housing costs.

The federation referred to the fall in housing completions, well below the 26,000 units which the National

Housing Council assessed as the need for this year. Also, since the resolutions 2 of the council in October, in-< creases in rail and road transport costs, and in wages, further widened the gap bes tween lending limits and tual costs of housing. S, Mr Holyoake replied that? these facts would be pass&P on to the committee whs{£ was studying the nation’s qqS© nomy. s-i«s