Toor response by most builders’

Press, Volume CXIV, Issue 33477, 7 March 1974, Page 3

Toor response by most builders’

(New Zealand Press Association,

WELLINGTON, March 6.

New Zealand builders, including Keith Hay Homes, Ltd, had had ample opportunity to assist in meeting the demand for lower-cost rental houses, said the Minister of Housing (Mr Fraser) today.

Apart from the work of a limited contracting force on State rental accommodation, the response had been disappointing, he said.

I “There have been recent encouraging signs of increasing response and I am hopeful that the Government’s recent decision to invite design-and-build contracts will result in more houses being built in this range. ’ Mr Fraser was replying to comments by Mr K. W. Hay, who had said he was confident that his firm could “handle the problem” of overcoming New Zealand’s housing shortage. “FIRM READY” Mr Hay called for the resignation of Mr Fraser because of his “threat” to import up to 2000 cheap houses. He said that his company was readv and able to build 1000 low-cost homes within the next year.

New Zealand builders could cope with the situation if the Minister brought his thinking up to date, Mr Hay said. Government departments could not make decisions because these had to come from the Minister.

His company had negotiated for six months with the Government for the provision of State housing, then tendered and never even received an acknowledgement, The tender had been withdrawn, after a month. Mr Hay said. EFFECT ON OTHERS Mr Fraser said today that Mr Hay might well be able to build 1000 houses, and no doubt he was at present building to his organisation’s capacity.

“The question would appear to be whether his organisation could build additional numbers of houses competitively in price and quality with other methods of construction without, in fact, jeopardising the output

of other building firms,” Mr . Fraser said. “What obviously is needed is to inject additional housing into the country without calling on our already limited [material and manpower resources, and this is the objective of the Cabinet’s decision. The only alternative lies in strong emphasis being placed on lower-cost housing until such time as the acute shortage is overcome." “TOO HIGH” Commenting on Mr Hay’s claim that he had been negotiating with the Government for six months over building State houses, Mr Fraser said Keith Hay Homes, Ltd, was invited on December 6 to tender for 11 houses in Auckland.

“Tenders were received on January 14 and because the prices were considered to be too high for acceptance the District Supervisor of Housing at Auckland was instructed to negotiate for a reduction. However, before an approach was made the firm withdrew its tender,” Mr Fraser said. “The situation is even more surprising in that my officers have been in negotiation with Keith Hay Homes, Ltd, during this week and I am advised that relationships have been most amicable. I am hopeful that mutually satisfactory standards can be agreed upon and that Keith Hay Homes, Ltd, will be able to contribute to meeting the rental housing shortage."