BUILDERS AND STATE HOUSES

Greymouth Evening Star, 29 April 1937, Page 11

BUILDERS AND STATE HOUSES

DEPUTATION TO MINISTER:

[per press association.]

WELLINGTON, April 28

Tho decline in the. number of dwellings erected, ithfrougliout New Zealand since the announcement of tho Government’s housing scheme, and the problems which faced the building andi allied trades' and. the home builder, were, discussed to-day by a representative trade deputation to the Acting-Prime Minister (Hon. P. Fraser), and Mr J. A. Lee, Parliamentary Under-Secretaliy in charge of Housing. Members of the deputation said they were very, concerned' with the amount the trade had' fallen off during the last six months. There were several factors mitigating against smooth working between the l State and private building enterprise, and it was suggested that the Government arrange for more money to be made available for the purpose of building homes, mainly by making advances up to 85 per cent., instead of to 6G 2-3 per cent. only. - Builders and allied tradesmen' greatly desired the Government to make a' statement as soon as 1 possible as to whether hohses erected under Hie housing scheme would' be made available for rental only, or for sale, and' whether there was to be a. salary bar for houses for rental. A further request was that the Government announce the rentals likely to be charged. Since the G'evernnrent made known the new housing scheme, there had been a serious falling off in the number of building permits issued, in the cities and larger towns of the Dominion. This could be attributed only to the fact that capital was shy, and what mortgage money offering was available only on a very conservative basis.

The deputation claimed 1 that it was tho Government’s- intention in the first place ■to make funds, availaoie through State lending channels to permit private persons building now, when, and where they liked, and it rvas now considered! that- the time had arrived when something should' be done to stem the serious falling off in the erectioh of private dwellings. It was also believed that if money was. made available to' private enterprise at the same rate of interest as charged by the State Housing Department, B it would; stimulate home-building. It was suggested that a small committee be set up, representing the trades covered by the deputation, to confer with Mr Lee and officers to find out in what way private enterprise, and State enterprise could best serve the public.

MR LEE’S CRITICISM. Mr Lee said the State Advances Corporation was not starved of funds-, and had plenty of money available for loans for all purposes; but the money involved in the; State Housing Depaftriient was money of a different kind altogether, and for housing only. He admitted that building “costs' had risen, but at the> same time fewer houses were built in New Zealand when costs were low a few years ago, than at any other period in history. Between 1926 and 1937 more than 20,000 building permits! had been issued, and during the last year, since loans in excess of 66 2-3 per cent, had been restored, 472 houses: had been built, compared with none for the pre-

vious year. “In my opinion, you builders could have done a lot more to assist yourselves, instead of standing off and punching my nose. For one thing, you could have worked in, with us,” Mr Lee said. He said he wished to see a small co-operative contract given to the Wellington Carpenters’ Union, provided it faced conditions when the Housing department could again turn) its attention to Wellington. He wanted to deposit anything up to 20 plans on couinte-rs at the main centres, so that builders could quote immediately for the jobs offering. “These difficulties may all arise without intent on anybody’s part,”, said Mr Fraser. “A statement will be made, probably,. within the next fortnight or three weeks, about the rent and cost of these houses. I will also look into the matters raised concerning the State Advances Corporation. The Government neither desires nor wishes to cripple the small builder. We w-ant to give him a fair chance. There is no point in putting him out of business. If you builders can show; us how, without sacrificing quality to improve our houses, you will indeed help ute.”