BUILDING TRADE

Dominion, Volume 30, Issue 41, 12 November 1936, Page 10

BUILDING TRADE

Concern Over HousingScheme Delay

PLIGHT OF SMALL MAN

Contracts for Homes in Groups of Twenty

Delay on the part of the Government in putting its housing scheme into operation and the procedure now being adopted by the State Advances Corporation in connection with applications for building loans are stated to be having au adverse affect on the building trade. With the public waiting to see what the Government intends to do in the way of providing homes there has been a general slackening-off in cottage-construction work, according to representative timber merchants and builders. The reactions as a result of this policy are causing many sections of the building industry serious concern, particularly the small builder and firms supplying his timber requirements.

Even when the State's housing scheme is in full swing the builder in a small way expects to receive little benefit, if any. So far as Wellington is concerned, it is the intention of the Department of Housing to call for contracts for houses in multiples of 2(1. It was pointed out yesterday by a man connected with the trade that small builders were not in a position to undertake the construction of 10 houses, let alone 20, and finance them during the building operations. Three houses, or at the most four, was the limit a small builder could contract for. Remote Chances of Loan.

“The man who really needs a house lias no chance of obtaining a loan from the State Advances Corporation." remarked one builder in a small way. A client of his who was a carpenter had applied for a loan, but the corporation had rejected his application, stating that his'occupation amounted to casuiu employment, and that he hud belter await the Government’s housing scheme and that a house would then be built for him on a rental basis. An individual apparently had no chance of obtaining a loan from Hie corporation unless he could furnish 50 per cent, of the security, said the builder. If the corporation would make advances up to 70 per cent, of the security, or 80 per cent, at the outside, it would give au impetus to the building industry. The corporation’s policy and the wait-and-see attitude of the Government were crippling the small builder. “Cottage work has slackened off because of the procrastination of the Government, and the policy of the corporation has slackened it off still more,” he added. “The small builder lias been right up against it for several years. Things were just coining along nicely about six months ago, but they have now tightened right up again because everyone is waiting to <=ee what the Government intends to do. The only alternative facing the small builder is to try and secure work as a journeyman carpenter. There is no inducement for speculative building. With contracts for houses under the housing scheme restricted to groups-of 20, the house-building scheme will be carried out by big combines. The Government cannot build any cheaper than can the average builder who is putting up houses, and even if it appears to be doing so the cost will probably be hidden somewhere.” Hit by Depression. “The small builder was the only man really closed up by the depression, and yet when things are picking up a little lie is the only man that is sat on,” remarked another man connected with the trade. “There have been no wheel tracks through many a builder’s yard entrance, either in or out, for years. Most of them hate been carrying on with odds and ends of jobbing work.” A man connected with the timber trade said that small builders were now finishing their jobs and had no others to go to. Applicants who sought loans from the State Advances Corporation were told that the Government would build them a house later. As a result of the corporation’s policy builders had been compelled to put men off. Sales of timber from his yards for October and September last were less than the sales for the corresponding months of last year, and the indications were that the current month’s sales would show a still further drop.

Another timber merchant said lie knew of applications that had been deferred by the corporation in anticipation of the Government’s housing scheme. Naturally, the extent to which loans had uot been granted had affected the timber trade, although timber was required for jobs arising out of loans that had been approved some time ago. Injustice to Small Builder, The requirement that contracts under the housing scheme had to lie tendered for in groups of 20 seemed a great injustice to the small builder, he added, and he was surprised that such a policy had been entertained by the Government. Competition was now so keen in the building trade that it was possible that the massed production and construction of houses on a large scale would cost just as much as building in smaller units. However, if the Government went on with its housing scheme it could not but benefit Hie timber yards which would have to supply the requirements of the furniture trade.

Painters, merchants supplying hardware requirements for the building trade, and others allied with the indutsry, stated that so far they had not noticed any contraction of business The explanation, they said, was probably due to the fact .that their services and goods were availed of and used when a building was nearing completion. Any reactions on the building trade must ultimately be felt by their businesses.