COMMENT FROM THE CAPITAL LOWER-COST HOUSING NEEDS AND MINISTER’S PROPOSALS

Press, Volume CXIV, Issue 33480, 11 March 1974, Page 12

COMMENT FROM THE CAPITAL LOWER-COST HOUSING NEEDS AND MINISTER’S PROPOSALS

'By

CEDRIC MEXTIPLAY)

WELLINGTON, March 10.—When the Minister of Housing (Mr Fraser) told master builders in Dunedin recently that unless they showed more interest in the lower-cost (specifically State) housing area the Government might import up to 2000 dwellings, some of the builders reacted with predictable violence.

One of them, Mr Keith Hay. of Auckland, called for Mr Fraser's resignation, charged him and his Government with inefficiency, and later, when his facts were challenged by Mr Fraser, suggested a three-point plan by which the housing position might be defused.

It does seem that the importing of houses is a contingency plan only, to be adopted only if our builders' response to State house contracts indicates that their resources are fully committed elsewhere. There is no intention on the part of the Government to compel builders to any course of action, but the provision of adequate lower-cost houses is regarded as of top priority by the Government. “Cabinet has authorised me to invite proposals and tenders from overseas as well as from New Zealand to build 2000 low-cost houses before March 31 of next year,” Mr Fraser told me. “The extent to which the Government finally decides how many it will import depends wholly on the response of the New Zealand builders ... “I am sure our builders have the capacity to do the job. All we are asking for is a shift in emphasis. It is not a matter of claiming all or most of their output for the low-cost field. If we had only’ one-sixth of their total resources concentrated in the low-cost area, mainly the rental sector, this would meet the most urgent need.” Asked if the Government’s housing programme had been a failure, Mr Fraser gave an emphatic negative. “The situation has arisen in spite of the fact that a record number of houses and flats have been built this year. To the end of the November year the number completed was 29,500, so we can reasonably expect the number for the whole year to be more than 30,000.” Long waiting list Mr Fraser was blunt in his remarks to master-build-ers in Dunedin. “Too few firms are producing reason-ably-priced family homes, pensioner accommodation and State dwellings,” he said. “Too great an emphasis is being placed on high-cost homes that yield larger prof-

its.” He suggested to me that there had been a misconception as to what he had called for on behalf of the Government. “Certainly I would like to see more housing ... but I would opt for less prestige homes and more homes for those in greatest need.” His figures are self-ex-planatory. Despite the increase in housing there are 14,000 families on the waiting list for State houses, about 2000 families more than there were at this time last year. Asked why this could happen in a record year, Mr Fraser said: “Don’t forget that we lifted the salary bar to State tenants. In fact there are less waiting than we estimated there might be. But we still have those 14,000 families on the list, and of them 4000 are considered to have an immediate housing need, and another 4000 a significant need.” He took a glimpse into the future. “One-sixth of our

' builders’ total output this 1 year would house the urgent; ■ ones. Two years like that would break the back of the problem and produce pensioner units in promising numbers. Then we would be free to go on to other kinds of development, interesting projects we would like to ■win time to examine." Design-and-build So much excitement was' generated by the image of (houses being imported into [New Zealand, a reversal of the usual flow of precut homes to Australia, Malaysia and the Pacific, that master builders tended to miss another project outlined by Mr Fraser. This is the design-and-l build system. “Builders are invited to come forward with designs of their own,” he said. “Their design might require a few modifications, but it will be accepted providing it meets the standard called for by the State Ad! vances Corporation, with a few modifications. “This is a break-through for small builders as well as large ones. The keynote is on continuity. Those who come forward with their (own plans. particularly where they are prepared to build on their own land, will certainly receive priority under the reciprocal purchase scheme.” Mr Fraser believes this will take the “stop-go” outj of building. Apart from help-! ing the smaller builder, and the “loyal ones” who have kept on to the State house field, it would encourage the builders who had moved into other classes of work and who wished to move back. “They are entitled to know they are going to have some continuity.” These are not mere words. Mr Fraser has agreed to the setting-up of a working party on which master builders’ nominees will meet representatives of the Government’s Housing Division. Mr Fraser intends to be at the initial meetings, which

will “hammer out a simple ! brief, spelling out clearly what the Government is aiming at. and trying to meet such material and [Other problems the builders (raise.” In addition, at Mr Fraser's request the State Advances Corporation is preparing a detailed report on the coun I try's housing needs. It will specify numbers, sizes and I locations. Mr Fraser is emphatic that his appeal is one for cooperation. There has been no move to bypass New Zea land builders. He discounted rumours which emanated recently from Auckland that United States contractors had been given orders. I “There are no negotiations jas such with any overseas person or firm to my knowledge, and I would know about it surely," he replied to my question. “I am bound to say that one or two fairly wealthy Americans have made overtures, and that some have suggested bringing in cash. But it is not cash we need; it is more houses.” Mr Fraser said one man believed he had the genesis of a good scheme, “but it appears from information which has reached me more recently that it would be nearly impossible for him to meet our specifications and go anywhere near the prices concerned.” I It was all a matter of j standards which must be I met. One New' Zealand builder who had indicated his concern had offered a type of house which did not meet the minimum standards. “I have tried hard, even making a personal visit, to encourage him to make a few simple changes in order to qualify, which he could have done quite simply. .. “I might say that one of the plans I looked at is only 930 square feet for a threebedroomed unit. When those prices are seven per cent above the estimate, I have to have regard for the taxpayer’s pocket.”