Greymouth Evening Star. AND BRUNNERTON ADVOCATE TUESDAY, JULY 24, 1923. HOUSING FINANCE.

Greymouth Evening Star, 24 July 1923, Page 4

Greymouth Evening Star. AND BRUNNERTON ADVOCATE TUESDAY, JULY 24, 1923. HOUSING FINANCE.

Willi the housing problem, like with others, advice is plentiful, including that from those already sure of a home, or with ample moans to obtain one should they so desire. Those not too well blessed with Iliis world’s goods, are warned not io cultivate a “bungalow taste” on a cottage income, no matter what standard of culture they may have attained. Mr. Massey, in the House of Representatives, last week, laid down the golden rule, for those workers who propose to lake advantage of the Government’s new housing loan proposals, to erect a house the interest on the cost of which will not exceed one day’s income. This is, doubtless, an excellent ideal for wage earners, if landsellers and builders can assist them to maintain it. The Railway Department, we believe, already has instituted a similar basis for the houses erected in various areas for its employees, but the private employee is likely to find himself on less favourable ground. It will require soirn; luck as well as prudent economy to enable him to follow l\lr. Massey's advice, considering what the current ((notations for sections and dwellings arc. Undue extravagance could scarcely be impuls'd to a worker, borrowing money under the widened Government offer, who agreed to pay a. total of, say, .-£BOO for his section and new house. Interest on this -would absorb £3G; quota of the repayment, of principal, on a 30 years’ basis, would mean about another £27, fire insurance and rales would be at least another £5, making the total cost CGB annually, or say 2G/- weekly. The average, daily income, all the year round, of a worker would be. about 10/- less, and no allowance is made for repairs, depreciation, and other usual outgoings. This could be a set-off against the lessened payments dm 1 on oul ■ slaiiding principal. The example quell'd is free ITmu exaggeration. and many would say I hat 10 get a bouse creeled mi a conveni cut seel ion for TSOI) would not be easy, that is under a system of individual agreemenls. Building a number oi dwellings, not neces.sar11 v alite, al I he same lime and on

blocks of Grown land, which Mr. Massey promised would be made available for the purpose, might improve the outlook for the prospective occupier-tenants. It cannot be too strongly insisted that sympathetic administration and really active cllorts by the Government will have to mark the workings of the new legislation, otherwise the excellent theoretic intentions of Mr. Massey will, not be transformed into practice. The remarks by some Reformers, notably Sii' M. Pomare, on the housing problem, suggest that there is insufficient appreciation of the difficulties of the situation, and if this is reflected in the working of the new scheme, the last state of the home-seeker will not be much better than the. first. It is wise to warn young couples not to try to begin where their parents leave oil', when selecting their homes, but to talk of mud huts or slab wliares is to be unfair. It is not the young generation’s fault that the price asked for sections is high, neither do they control building charges. The law of supply and demand rules them in this as in other avenues of life, and the aim should be to assist the economical-ly-minded. The new bill met with no serious opposition, drastic and courageous as its provisions were, which proves the recognition by most legislators of the imperative need for a solution of the housing difficulty. Approval was forthcoming, too, to Mr. Massey’s declaration of Avar on likely profiteering, but if the Government is going to remain content with this, leaving the workers to do the rest, the chances are that the new scheme’s actual harvest will be disappointing.