CITY BUILDING

Evening Post, Volume CXXIII, Issue 100, 29 April 1937, Page 8

CITY BUILDING

FEWER PERMITS

DEPUTATION TO MINISTER

CONCERN EXPRESSED

Concern at the falling-off in the number of building permits issued in connection with private dwellings since the Government announced its housing scheme was expressed by a deputation, representing the building and allied trades, which waited on the Acting Prime Minister (the Hon.. P. Fraser) yesterday afternoon. Mr. J. A. Lee, Under-Secretary to the Minister of Finance, who is in charge of housing, was also present. Several matters in connection with the housing scheme and the building industry generally were dealt with by the deputation, and the Acting Prime Minister gave an assurance that the Government would investigate the points raised. . , . . Mr. F. H. Griffith (Wellington. Hardware Merchants' Association), who headed the deputation, said it was the desire of the interests he represented and the interests represented by other members of the deputation to co-, operate with the Government. There were certain obstacles mitigating against the advancement of building, and he hoped the Government would' endeavour to remove those obstacles. Mr. Griffith suggested that with a view to overcoming the present difficult situation, the Government arrange that money be made more; freely available for the-purpose of building homes, namely, by making advances up to 85 per cent, .instead of, as at present, advancing up to 66 2-3 per cent, only, .and thus bridge the gap that at present existed and which prevented many persons from building homes .because of the of raising the difference between 66 2-3 per cent, and the amount required. It was also desired that the Government make a statement as to whether houses erected under the housing scheme, were to be made available for rental only or for sale, or for both rental and sale; and ■whether there : was to-be a salary bar.in connection with the rental of the houses. A fur-, ther request was.that the Government announce, the rentals that were likely to "be charged, for the ;houses. It was claimed that since the -Government made known its new housing scheme there had been' ,a serious falling-off in the number ,of building permits issued in the ..cities and larger towns of the Dominion. This could only be attributed to the fact that capital was shy and what mortgaged money was offering was available only5 on a very conservative basis with such a wide safety margin that prospective home builders could, not bridge the gap. It was claimed that it was the Government's, intention to make funds available through State lending channels to permit private persons building how, when, and where they liked, and it was now considered thai the; time had arrived when something should be done to stem the falling-off that had taken place in the. number of private dwellings that had . been erected. ■ ■ . It was also believed that if money were made available to private enterprise at the same rate of interest as that charged in connection with the State Housing Department it would stimulate home building throughout, the Dominion. RENTALS OF GOVERNMENT HOUSES. In the event of a salary bar, the various interests the deputation represented felt that a statement should be made concerning the rentals to. be charged under the housing scheme, particularly in view of statements that had been made previously that the Government intended to provide homes for the people at a rental of 12s 6d per week. Apart from holding individuals back from the building.of homes, this suggestion had the effect of preventing j people with capital from building homes to supply the needs of the people. Since July last year, continued Mr. Griffith, a .falling-off .in the number of building permits , had taken place. This had possibly been brought about because the public, rightly or wrongly,: were under the •; impression that the. houses to be built under the housing scheme would be available at from 15s to 16s or less a week rental. : Mr. Fraser said it was the first time he had heard that 12s 6d a week was to be charged ;as rent for houses under: the Government scheme. In ;his wildest .dreams he had never imagined that such could be the case. A member of the deputation said, that it had 'been accepted by -some people that ,12s -6d .only was to be charged for the houses, but Mr. Fraser, supported .by .Mr. Lee, again said he had never heard of such a rent/being placed on ;the houses. . , Mr. Lee asked if members of the deputation could find sufficient tradesmen to warrant increasing the number of building permits, and it was generally agreed-that there was a shortage of competent painters, carpenters,. Mr. Griffith said that for fiats and commercial buildings there was no difficulty in.raising -money, because, such premises were .revenue producing. He said it was better to build ten houses costing £1000 each than one house costing £10,000. Mr. F. Campbell, representing the furnishing trade, said that the deputation did not wish to pick holes in any scheme instituted by the' Government, but if lack of confidence had. been created among those who had money to invest any doubts could be removed by co-operation with the Government. The deputation felt it was necessary to increase building by private enterprise. He suggested that a small committee be set up to confer with Mr. Lee and his officers to see in what .way private and State enterprise could .best serve the Government. Mr. Lee said that the State Advances. Department had not been starved-so far as funds were concerned by the present Minister of Finance. The Department had b,een given ample funds for lending purposes. The money that had been set «aside for the housing scheme" was new money altogether, and was in no way a substitution for State Advances lending. Repeated discussions had taken place with the State Advances Department, and the Department had been asked as far as was possible, taking into regard reputable security, to make advances. There was no doubt, continued Mr. Lee, that building costs had increased. When building costs were lower a few years ago, however, fewer houses were built, and latterly, when costs were higher, more houses had been erected. SUGGESTIONS INVITED. Mr. Lee said that the last Government legislated against loans carrying an excess of 66 2-3 per cent, but one of the first things done by the Labour Government was to reinstate that privilege. In addition to the State Advances Department, which was acting more freely than it had acted

, since 1931 or 1932, £5,000,000 was made 1 available for the housing department.

After discussion on the estimated cost and the actual cost of houses being erected under the housing scheme, Mr. Fraser said that if anybody could show where a saving could be made in connection with the State houses without sacrifice of quality the door was open for them to make suggestions.

Mr. Lee said he wanted to see a small co-operative contract let to the Carpenters' Union provided members of the union -could face up to the terms. Once tenders had been let in' other towns, he .said, he would like to reach the stage in Wellington when the Government could deposit 20 plans on the counter so that the builder could inspect them and put in a price.

. Mr. Fraser assured the deputation that as soon as possible the Government would give attention to the matters raised by them. The amount of the rental-to be charged for the houses being erected under :the Government's scheme would be announced ■without unnecessary delay.

Mr. Fraser added, in reply to representations, that it was not the desire of the Government to put' the small builder out of business. Along with the rest he would have his chance of securing contracts.