RURAL HOUSING

Evening Post, Volume CXXX, Issue 27, 31 July 1940, Page 13

RURAL HOUSING

AMENDING BILL

MAINLY MACHINERY CLAUSES

A Bill providing for amendments to the rural housing legislation, containing mainly a number of machinery clauses, was introduced in the House of Representatives last night and was read a first time.

The Bill, Mr. Nash explained, contained administrative and policy amendments to the Rural Housing Act. First, it enabled county councils to impose a penalty of 5 per cent, on instalments on houses that were not paid on due date. Then it provided that the Crown, as mortgagee, could give priority, and would do so in 99 cases out of 100 if circumstances warranted it, to any advance made under the Act, and the same power was given to trustees without any breach of their trust being committed. Fire insurance on buildings erected under the Act was to be held by the local authority.

Another provision enabled members of local authorities who were members of county councils to obtain loans for houses without their membership of the local authorities being affected. The next clause provided for the recovery of rates from any person even if the property had been transferred. That simply cleared up a point that had been raised by members of the Law Department.

The next clause was an administrative clause enabling a county council or any council to give one debenture for the whole amount of the loan, even if the loan was paid in 30 or 40 instalments. Buildings hired to farmers by the Crown to provide accommodation for farm workers were to remain the property of the Crown, and any of these hutments might be removed by the Crown at any time, even though the existing law provided that nothing attached to the soil could be removed.

Replying to a question from the Leader of the Opposition (the Hon. Adam Hamilton), the Minister said that the subsidy associated with local housing was designed to assist county councils to erect houses.

In reply to Mr. J. N. Massey (National, Franklin), the Minister said that the only reason for the provision of a subsidy and a lower rate of interest was to induce building in the country. If a subsidy were given in the country to people who could afford to pay, they would strike difficulties, because representations would then be made for similar subsidies in the cities.