HOUSING TRAGEDY

Evening Star, Issue 22351, 29 May 1936, Page 13

HOUSING TRAGEDY

SHORTAGE OF 20,000 DWELLINGS

GOVERNMENT TO UNDERTAKE NATIONAL DUTY “ USEttOLD " WOULD DEFEAT EXPLOITATION [From Oun Pakliamektart Reporter.] WELLINGTON, May 23. The Government’s future housing Bill was mentioned in the House to-night when the Minister of Finance was discussing the State Advances Corporation legislation, which includes some financial provisions for this programme, and constitutes the corporation the administrative authority once the houses are built. Britain, said the Minister, had spent in 10 years between 150 and 200 millions on housing, and this Bill proposed to make loans to local authorities to enable them to introduce housing schemes. He was not able to indicate the interest rate at present. “ I don’t think members realise the tragedy owing to the shortage of houses in this country,” exclaimed Mr Nash; “ the suffering experienced by a tremendously large number of people.” During the past four years the average number of houses built as 1,700 to 2,500 per annum, when the Dominion required at least 5,000 new houses yearly. Therefore the shortage was between 16,000 and 20,000 dwellings, which meant that there was that number of families not properly housed, and , the reactions therefrom were really harmful from a social point of view. 1 , SHORTAGE EXPLOITED. This shortage was being exploited by some landlords, but, asked the Minister, what was going to happen when the corporation could advance more money ? There was a purpose behind the Bill. If they went to 95 per cent, of the security in advancing loans, or evert greater, what would happen, unless steps were taken to prevent it, would be that all the advances the State was willing to provide in connection with the provision of homes would be taken away by the land agent, the land grabber, the landowner, and those controlling the raw materials from which houses were constructed. They would take their share of the advantages provided by the State, and the Government, would have to find a way to stop this, though it would be difficult. However, those concerned with the real prosperity of the Dominion must realise that they would do better by keeping land values at a normal basis. If not, then the Government would take steps to prevent them benefiting from the efforts of the State, Mr Kyle : The us eh old ? The Minister; That would bo splendid. I don’t know any better way of ensuring that if you want to use the facilities of the State for building homes, that benefit shall be provided only for those requiring homes. I don’t know any better principle than the usohold, in the general sense of the term, and wo will encourage it. Mr Hamilton (Wallace) suggested from the Opposition benches that the Bill made practically no provision for a housing policy. It only transferred to the State Advances Corporation the two Housing Acts, one ipassed in 1919, and the other passed in 19.22. Housing today was a problem, especially in the city of Wellington; but in Invercargill, where he Jived, it was not a problem as a remarkable amount of house building had been done there in the past few years. _ Housing was a social problem, he continued. it was a national duty to provide good housing for the people, but he questioned whether any system was as good as that of building societies. Ho commended to the attention of the Minister the work of building societies in Southland. It was sounder for the State to assist in financing the building of houses than to assist in running businesses or farms. There was not so much objection to State lending up to 80, 90, or 100 per cent, on a home, as to lending for industry or on a farm, and lie thought there should be a margin for the lender in the latter cases, even when the State was the lender, if the provision for lending up to 100 per cent, was confined to houses only, that would rWt be so dangerous, and' would not tend to create lack of confidence.

RISING COSTS EMBARRASSMENT. There was nothing the Minister would bo so embarrassed about as rising costs, continued Mr Hamilton, if he tried to keep costs from rising he had a big task ahead. Some extra costs would have to be passed on.

It was estimated that labour costs, direct and indirect, were something like 00 per cent, in the building. The prices of houses must go up, he thought, and cheaper rents were desirable. He was often puzzled when he heard of acceptable houses in Britain being let for 2s to 7s a week. That could not be done here.

“ Do you think we are passing this legislation to put money into” the pockets of tho people who sell land or houses? ” asked Mr Savage at a later stage. He asked the Opposition and the people not to worry about the speculator. “Ho may win the first round, but we will win in the finish, because wo have the power to legislate.”