MUNICIPAL HOUSING

Evening Star, Issue 21824, 13 September 1934, Page 5

MUNICIPAL HOUSING

SCHEME FOR 200 DWELLINGS COUNCILLORS CRITICISE MAYOR'S PROPOSAL PREVIOUS SORRY EXPERIENCE RECALLED The erection of 200 houses under a loan scheme for £IOO,OOO was proposed by the Mayor (Rev. E. T. Cox) to last night’s meeting of the City Council. Although several councillors criticised the proposal, the Finance Committee will report on the scheme. _ Dunedin’s previous experience in municipal housing was sorrowfully recalled by some of the older councillors. The Mayor moved: —“ That the Finance Committee be requested to report upon a proposal to raise a loan of £IOO,OOO at 3i per cent, for the purpose of erecting 200 houses on sites already owned by the corporation; that the Unemployment Board be approached to grant a subsidy at 12 per cent, on the cost of erection; that the houses bo erected for approved purchasers who will be charged 4 per cent, interest and '2J per cent, sinking fund on the cost of houses and land, the i per cent, additional interest charged to form a fund to meet any liability arising from loss; that the houses be supplied with electric lighting, heating, and cooking appliances, and that a flat rate he made for electricity of 4s weekly.” The Mayor pointed out that a considerable shortage of good houses in the city existed at the present time. A great many of the poorer type of houses should have been condemned—and would have been condemned if times had been more favourable. The scheme would produce, first, the sale of between £40,000 and £50,000 worth of the city’s idle sites, which, at _4 per cent., would provide a reduction in the rates of practically Jd in the £. Or Begg: Unimproved? The Mayor (smiling)! No. Annual value.

CrßeggsOhl The sites, said the Mayor, _ would probably stand idle for some time. Or J. L. M'lndoe: Do they belong to the city? The Mayor: Yes. The rates from the properties would produce approximately £1,500, electricity sales £2,000, and the emergency fund £SOO annually. The scheme would enable purchasers to secure a £750 house at a cost of 17s 6d weekly, becoming their own at the end of twenty-five or thirty years. Their payments would be lower than they were now paying for rent for smaller houses. The scheme would result in a reduction of rates, after any loss, of lid in the £• Seconding the motion, Or A. H. Allen said the proposal would require a great amount of consideration. The Mayor had not indicated where the 200 sections were situated, but he would probably do so before the committee. He had no knowledge of the city holding 200 vacant sections. Or W. A. Scott said he noticed that the mayor’s intention was to deny the tenants the use of the best method of cooking. The mayor was cutting out gas. (Laughter.) Or J. B. Shaddock said that, while he had no objection to the committee considering the proposal, a £50,000j scheme for the reconstruction of Glasgow street had been before tbe Finance Committee for some months. He suggested that tbe mayor should drop his £IOO,OOO scheme, and concentrate on the Glasgow street proposal. Like Cr Allen, he was unaware of the city s) 200 vacant sites. Municipal housing schemes were the worst things they could undertake. Some of the councillors would remember the experiment indulged in by the council some years ago, and that it was one of the worst “ specs ” the council bad undertaken. If they proceeded with the mayor's* scheme, the experience would he repeated. The disaster would he as great* if he or Cr Silverstone were in the* chair. Regarding the electricity charges, he contended tnat all sales should be on a meter basis, irrespective of the occupiers of the houses. From experience they could not venture to depart from the meter system, which, he thought, should also apply to the water service. Cr Begg; And put drainage through the meter, too?' (Laughter.) Cr Shaddock: Yes, if it were at all possible. ;, , ~ , Cr Silverstone said be could not agree with Cr Shacklock that municipal housing was disastrous. . You have not been on the council long enough,” retorted Cr Shacklock. Cr Silverstone: Although I have not been long on the council, I am fully conversant with the council experiments in Dunedin and elsewhere. - “ Not fully,” corrected Cr Shacklock. While agreeing that the council’s previous experience was not enviable, Cr Silverstone said the fault was not that of the council or the committee. When he first saw the houses, he said somebody had been ” had and, since joining the council, he found it was the council. He had a little knowledge of plans and house building, and he know values; and he was certain that the person who had built the houses had not made a loss. They were never likely to pay. Any future building scheme would be on a different basis. Municipal housing schemes elsewhere bad been _a success, the houses having been built for the people living in them and to last; the Dunedin houses were not so built.; ‘‘That was a very nice little speech by Cr Silverstone,” said ■Cr J. L. MTndoe. Cr Silverstone was always willing to condemn things in Dunedin and to praise the distant hills, and he knew very little about the Dunedin housing scheme. There was nothing wrong with the houses or tui; way they were built. If the builder made a profit, he was entitled to it. A contract was let. The trouble was that some of the people did not pay rent, because the poor landlords were a local body, and they felt they could snap their fingers at the landlords and win public sympathy. That was also the reason why municipal housing schemes had not been successful m other places. Figures of the Christchurch scheme were astounding. The occupiers were behind, in their rates, reduction of principal, and rents. This mad© him doubtful if there was anything in the mayor’s scheme. The committee would be well advised to consider the mayor’s proposal very carefully, although he agreed that better housing for some of the poorer citizens of Dunedin would be of great .advantage. Ho would be very glad to condemn some of the houses he bad seen, but the tenants could not be turned out. He would support a scheme which could be proved to bo sound from the financial and economic aspects. \\m!e the mayor’s scheme might not he adopted, amendments could be suggested. The proposal was at least a start. There were places in Glasgow street which should be pulled down. The motion was carried without a dissenting voice being raised.