HOUSING NOT STATE PROBLEM ALONE

Dominion, Volume 38, Issue 268, 10 August 1945, Page 9

HOUSING NOT STATE PROBLEM ALONE

Assistance To Local Bodies MINISTER’S VIEWS ON BILLS BEFORE PARLIAMENT

Housing was not a State problem alone, and the State's objective was to bridge the gap between what private enterprise could and could not do; consequently, when local bodies undertook schemes to help in building homes they were deserving of every congratulation, said Air. riIE'AIBLE, -Minister of Works, when the Invercargill City Housing Bill and the Balclutha Housing Bill were read a second time in the House of 'Representatives yesterday. Both Bills are similar in the provisions to help working people with a small amount of capital to build homes. Mr. DENHAM (L., Invercargill) explained that at present, building societies would finance two-thirds of the cost, the applicant, finding one-third, but every working man could not find one-third of, say, £l5OO, so the council in conjunction with the financial institutions would assist to the extent of nine-tenths of the money required. The maximum period of the loan would be 30 years, and the council eonld borrow for this purpose up to £25,000. The Bill also gave the council power to lease land for housing purposes. Mr. ROY (N„ Clutha) said the Balclutha Bill was designed on similar lines to the Wellington City Housing Bill. 1938, which he understood had proved very successful. The Balclutha district offered excellent opportunities, and anyone with a private section and enough capital to meet one-tenth of the cost of a home would be enabled, with the assistance of the lending societies and the borough council, to go ahead with the building; The council had taken very progressive steps in making sections available cheap to returned soldiers, who could then use the facilities in the Bill. Mr. SE'MFDE said they could do nothing but congratulate any local body in Now Zealand which showed such vision and initiative in endeavouring to house its own people. The State could help them, but it was the function of boroughs or cities or counties to do work of this type. It had 'been suggested that the Government was not encouraging individuals to build their homes, but that was a long way from the truth. The State did not want to be the sole landlord and would help people to build their own homes (Opposition applause). Government’s Borrowing Rates. Mr. GOOS3IAN (N., Waikato) said he wished to join in congratulating both local bodies on undertaking these projects, but he was surprised to bear the -Minister's remarks on what private enterprise could not do, and that the Government wanted to assist people to build their own homes. The Government got its money for housing from the Reserve Bank at one per cent, and then charged people four and one-eighth. This led him to suggest that the Minister was not sincere when he said the Government wished to help the people. . 31R PARRY, Minister of Internal Affairs, 'added his congratulations to the local bodies in their efforts to relieve the housing situation at what was undoubtedly a difficult time. He contended that the present housing shortage was a legacy from private enterprise, which had failed to measure up to the task. In support of this he pointed out that during the 10 years prior to the present Government coming into power there had been built under private enterprise 42.733 houses or a yearly average of 4273 houses. Between 1936 and 1944 51,534 houses had been built, or a yearly average of 5726. These fjgures showed the need for giving every encouragement to any local bodies which were prepared to assist. They also showed that private enterprise had failed to meet the actual needs. 31R. AV. SULLIVAN (N„ Bay of Plenty) said that if the State was able to raise funds at less than 2 per cent, then it should take steps to inake them available at the same rate of interest to local bodies and to those wishing to build privately. Private enterprise had been bled by high taxation. 31R. FRASER, Prime Alinister. rose to a point of order at this stage and suggested that the discussion must be kept within the confines of a local Bill. It was not fair that matters should be raised that might be allied to the Bill but were strictly outside the scope of a local Bill. * MR. SPEAKER said that members should confine their remarks to the Bill. Effect of Increased Costs. .MR. SULLIVAN said houses could not be built without timber.. There had been an increuse in prices to the millers of 19 per cent, since 1939, ami all of that, other than 3d. a 100, had been paid out for labour, till they 'had. reached the stage today when many mills were carrying on almost at a loss, lie congratulated Invercargill and Balclutha on the steps they bad taken. -MR. ARMSTRONG (L., Napier) said Invercargill and Baleutlm were to be commended for taking advantage of the cheap money made available by the Government to build workers’ homes. This could be availed of by every county council and local body in the country. Ihe building of homes in Invercargill and Balclutha would also provide' work for contractors in those districts. .MR. AOLAND (N„ Temuka ) said that there was obviously some, misapprehension on the part of some members. The member for Napier had been referring to the rural housing scheme introduced eight years ago, whereas the Invercargill and Balclutha measures were to enable advances to be made above the first mortgage. Many county councils had taken advantage of the Rural Housing Act.

The two Bills were put through the committee stage, read a third time and passed.

STATE HOUSE EMPTY NINE MONTHS

Member Urges Immediate Reletting

Steps to see that all State houses were re-let immediately they became vacant were urged by MR. SMITH (N., Bay of Islands) in notice of u question to the Minister in Charge of the Slate Advances Corporation. Mr. Nash, in the House of Representatives yesterday., He said, in a note to his question, that he had a ease of one which had been emptv for nine months, and the only satisfaction that was received by those wishing to rent it was a letter from the Stale Advances Corporation in Whangarei which stated: "With regard to your statement concerning a vacant Stale bouse in Worth Street, Kait.'tin. I have to state that the whole circumstances of this unoceiipitiiey are known io the Corporation. but there are certain aspects which tire not known to yon The administration of lliis dwelling is in the hands of this ofiicc.”