GOVERNMENT HOUSING SCHEME.

Evening Star, Issue 22573, 15 February 1937, Page 13

GOVERNMENT HOUSING SCHEME.

TO THE EDITOIi. Sir, —The Hutt Valley Master Builders’ Association desires to draw the attention of the public to the following points in connection with the tendering for the erection of Government houses in the borough of Lower Hutt:— (1) Careful perusal of the plans, specifications, and bills of quantities issued for the purpose of tendering, and the comparison of the rumoured prices of the accepted tenders with current ruling prices for similar types of cottages, will show the ridiculously high prices that the method of tendering has caused. This is bOrnc out by the fact that the houses vary in floor area from 800 square feet and the average prices are alleged to range from about 23s 7d to 23s Sd per square foot, compared with the prices two years ago of 12s Cd to 13s Gd per square foot, which prices have recent!v risen as a result of the leg'G.-uion ot the 1; si scs-

sion to tho ruling rates to-day of 15s Gd to 17s per square foot in this borough. (2) Both Mr Savage and Mr Nash stated that iheso cottages will be let to workers for a rental of 12s 6d to 17s Gel per week, while Mr Armstrong asserted that the houses would cost not more than £7OO. Following on this, it is now understood that the prices range from £I,OOO to nearly £1,500, and this exclusive of tho costs of the plans and specifications, permit and drainage connection fees, bills of quantities, supervision costs, departmental expenses, and tho cost of the sections. Further, it is announced that the Government will not pay building permit and connection fees, which cost will be saddled on to tho ratepayers in the borough, whilo the ruling rates of today quoted above at 15s Gd to 17s per square foot include all these costs, which the ordinary builder must pay on behalf of his client. (3) We, the master builders in tho Hutt Valley, make bold to say that the whole scheme is so designed as to play into the hands of large monopolistic construction companies, and that it is practically impossible for any builder with a capital of less than £IO,OOO to compete for tho work. Further, wo assert that the method of tendering by means of a master schedule and separate hills of quantities for each cottage has increased tho prices by an average of at least £l5O per cottage. As evidence of our sureness of this statement we are prepared to undertake the erection of the 300 odd houses which are to bo built in Lower Hutt, amL keeping strictly to plans and specifications (which we understand were prepared by the Fletcher Construction Company Ltd.), we will show an average minimum saving to the Government of £l5O per house, or a total of £45,000 on the original scheduled tenders. (4) In spite of the above facts, which must cause uneasiness and discontent, the Government is calling for tenders for even larger blocks of houses in the Auckland district. We would suggest that it give one large block to a monopolistic concern, and then show sufficient sagacity to do away with the mils of quantities and, on an exactly similar block, test out the present market by allowing tho smaller builders to tender without the hindrance of the schedules. If this- were done we have no_ doubt that the public would soon realise tho large discrepancy in the prices and exactly for what they are being asked to pay.—l am, etc., L. V. Phillips, Secretary Hutt Valley Master Builders’ Association. Lower Hutt, February 11.