Review Of State Rents Under Way

Press, Volume CVIII, Issue 31681, 17 May 1968, Page 12

Review Of State Rents Under Way

(New Zealand Press Association) WELLINGTON, May 16. The average State house rent in New Zealand would be between $6.23 and $8 when the increases come into effect next week, the Minister of Housing (Mr Rae) said today.

The Government’s aim in increasing rents for State tenants with higher incomes was to get a fairer rent, rather than to increase revenue.

No-one earning less than 844 a week, with $lOO a year

for each dependent child, will pay extra, and pensioners will be exempted. The increase will be graduated up to $5, with the maximum being paid at a wage of $3280, plus $lOO for each child. There were 30,000 tenants to be reviewed and this would take six months, he said. If the income of a

tenant dropped he could have his situation looked at each six months. Each demand sent out asked for a $5 increase, but this was done only for legal purposes, said Mr Rae. In Wellington, there would be 7000 inquiries about tenants’ salaries. So far 2687 had been sent, 1641 replies had been received, and 1356 had been processed. Of the latter tenants, 933 had been granted full relief from increases and 368 partial relief.

Of the remaining 45 replies, 35 had been deferred for further information, leaving 10 to bear the full burden of the $5 increase. “I can’t say what increase there will be in revenue, but if it is over 81,000,000 I'll be surprised. It would show that there are more people on higher incomes in State houses than we think," said Mr Rae.