Building Deferments Of $8.6m Ordered

Press, Volume CX, Issue 32349, 15 July 1970, Page 1

Building Deferments Of $8.6m Ordered

(From Our Own Reporter!

WELLINGTON, July 14.

Building deferments totalling sB.6m have been ordered in Christchurch, Wellington, and Auckland up to the end of June, according to statistics supplied by the Building Projects Authority (Mr R. F. Paris).

Christchurch deferments, all for six months, include a private office building valued at $600,000, and two shop projects totalling $615,000.

In Christchurch no local body or Government approvals are indicated, although these represent a large part of approvals in Auckland and Wellington. The position in the three cities is: Christchurch: Approvals, $4.5m (all in the private sector); deferments, $1,215,000 (all fpr six months). Wellington: Approvals,sB.6m (private s6.Bm, local bodies sl.sm. Government $300,000); deferments, four

office buildings totalling $3.5 million (for 12 months). Auckland: Approvals, $19.7 million (private $11.9m, local bodies s4.Bm. Government s3m); deferments, three office buildings totalling $3,900,000 (for from six to nine months). The reintroduction of selective building programming in the three main cities became effective on May 1. It was said to be an indication of Government concern at the general inflationary trends in the economy. “In the three major areas, rising demands on building resources, particularly for major commercial buildings, continue to exert pressure on the building industry, which in common with other sectors of industry suffers from a shortage of labour," the Min-

ister of Works (Mr Allen) said in a statement tonight. “Despite recent wage increases in the building industry there is no indication of any substantial increase in labour resources. In fact the latest figures show that the position is practically static since the October, 1969, survey.” Mr Allen noted that while the industry seemed to be coping well, there was increasing evidence of rising prices and delayed completion dates occurring, which necessitated some restraint on demand. Any such restraint, however, must have regard to the growth of the nation. “Targets for restraint are

limited,” he said. “Few, if any, building projects can be classed as inessential. It becomes a matter of selecting those for restraint where the public interest will not be unduly affected if they are deferred for a limited period.” He placed in this category office buildings constructed for investment purposes, and such projects as shopping centres and supermarkets. So far, he said, a number of these types of construction had been deferred for up to 12 months.

He made it clear that deferments applied to work in the early planning stages. Any disruption or inconvenience to the applicant was therefore reduced to the minimum. The building programmer issued a firm consent indicating the forward date upon which the work might proceed. “The major problem is to try to correct the imbalance between demand and labour resources,” Mr Allen said. “In the affected areas, forward demand continues at a high level. Numerous large-scale commercial developments are being planned, and substantial Government and local body projects are in the pipeline.”