Building ‘survival plan’

Press, 23 October 1980, Page 9

Building ‘survival plan’

PA’ Wellington Labour’s Shadow Minister of Housing, Mr M. K. Moore, has released a housing mini budget which he described as a “survival plan” for the building industry. Its major points, adapted from the Labour Party’s 1978 manifesto, are; Introduce over 18 months 80 per cent loans for buying a first new home, with income limits adjusted to take into account inflation since 1975. Readjust capitlisation levels to 1975 figures. Roll back the interest rates of the Housing Corporation to 1975 levels. Use the Reserve Bank ratios to let out more money through the banking system and direct interest rates to lower levels. Establish a fund for second mortgage refinancing. Call together the Labour and Statistics Departments and Housing Corporation to establish a manpower and materials policy capable of handling a target of more than 20,000 units within 18 months. Reintroduce measures to control speculators.. Mr Moore said that these measures were short-term proposals. There was a need to plan the building industry on a long-term basis, taking into account demographic changes, immigration, social, and family movei ments and . new perceptions, he said. “However, at present ,the industry is on its knees and must get immediate support or we will not have the skills or materials needed to cope in Mr Moore said.