HOUSING SHORTAGE

Dominion, Volume 18, Issue 218, 15 June 1925, Page 9

HOUSING SHORTAGE

Sir, —In connection with the above, the criticism of the Government, of which Air. R. A. Wright, M.P., complains, is well merited. Certainly the New Zealand Government is not alone in having at least perpetuated by lack of politico economical methods the present deplorable condition relating to the shortage of dwellings. That, however, is small comfort to all concerned. The condition ' certainly obtains in many parts of the world to-day, but outside New Zealand, in most cases, the late war and dense populations have been, and still are, retarding factors. New Zealand has the best opportunity of a quick recovery, because of its small and well distributed population. There was never a better opportunity than now for a Government to show real wisdom in economics. Air. Wright, according to vour report, state ! that “The day of the speculative builder was gone.” It? must be inferred that Dlr. Wright regrets the fact. Very good, whose fault is it? Surely intelligent men are not supposed to believe that useful gentleman has disappeared without reason. The speculative builder has been #;ent into oblivion pro tern by the rent restrictive legislation, and the economically sinful lenience shown by the Courts of Law to defaulting tenants—that is the essence of the situation. The position reminds one of the ancient king, who, finding his orchard part- 1

Iv destroyed bv birds, promptly exterminated the local feathered tribe. The next season he had no fruit whatever; he had killed the only natural means of keeping insects in check. Legislation, mostly war palliatives, which have outlived their usefulness, has “killed, the speculative builder by rendering his work unreruunerative or too risky. A courageous correction of these errors by the Government would be quickly followed by the disappearance of the present house shortage. Mr. Wright states that the bulk of the erection of new houses falls to the Government care. This is not the case; the Government simply finds it must do something to patch' up—and it can do no more than patch up—the trouble arising from interference with the natural, though much ignored law cf supply and demand. And this “patching up” is a costly and ineffective affair, for which the people have to pay the entire bill, for the Government is not a rich uncle. It actually owns nothing, and all the liabilities it incurs must be paid for out of rates and taxes. The Government expenditures and estimates detailed by Mr. Wright are interesting and instructive, but it is s>ad to recollect that the greater part of all this money .might have been saved by the unsffiackling of private enterprise. How long, oh Lord, how long, before the fact is recognised!, —I am, etc., BASIC.