Abolition of Housing Corp. ‘preferable’

Press, 24 November 1979, Page 24

Abolition of Housing Corp. ‘preferable’

Parliamentary reporter > Abolition of the Housing Corporation would be preferable to letting it “simply fade away,” according to the convener of Labour’s hous- ■ ing committee (Mr M. K. Moore). Mr Moore, who is the member of Parliament for Papanui, was commenting on a report in "The Press” of November 20 that the number of Housing Corporation sales in Christ- i church was increasing. He said that his initial re-1 action to the news that: more than 50 instances of! forced sales had been recorded since April 1 had been one of anger. High interest rates, unemploy-, ment, and a “general tightening of the economic noose: around families” caused the; sales, he said. "Four years ago, when Labour was the Government, there were few, if any, farced sales of Housing Cor-i poration homes. Now it seems that even Housing Corporation loans, traditionally the cheapest, are beyond the financial abilities of an increasing number of people,” he said. “Since the last century, governments have used the State Advances Corporation and then the Housing Cor-

poration to assist people into their own homes. This institution has survived several depressions and two world wars, but it is fast becoming meaningless for the mainstream of propertyseeking New Zealanders.” Mr Moore said that it would be better if the Government abolished the Housing Corporation rather than let it simply fade away. “Because of the Government’s attitude, many are now being forced into private finance at high interest rates,” he said. But in the private sector, mortgagee sales had increased by 1000 per cent. Mr Moore, who recently introduced a private member’s bill to control interest rates, said that the average one-income family was now paying 50 per cent of its income in interest, and that the average person would pay for his home three times because of high interest rates. “The Minister of Housing (Mr Quigley) says he wants the Housing Corporation out of housing and that market farces should rule, but low interest rates and the refinancing of many people trapped under this policy will be the first priorities of the next Labour Government,” said Mr Moore.