Working Loss Of £116,000 On State Houses Last Year

Greymouth Evening Star, 11 October 1948, Page 3

Working Loss Of £116,000 On State Houses Last Year

(P.A.) WELLINGTON, This Day. A working loss of £116,224 on State houses was shown in 1947-48, compared with a loss of £58,833 in 1946-47, according to the annual report of the State Advances Corporation. The report says that the increased fate of loss is directly related to the steady increase' in building costs over recent years, which has resulted in higher charges a unit for interest, depreciation, insurance, and maintenance, and that the quantum of loss will tend to increase as more houses are built at present prices. The rents receivable last year amounted to £1,662,003, compared with £1,479,662 in 1946-47. Included in the charges against this revenue are depreciation at a rate sufficient to write off the construction cost in 60 years, insurance provision at the average rate chargeable on these types of dwellings by insurance, companies, interest and the capital cost, maintenance at 1-| per cent, tn the cost of improvements, and losses and vacant tenancies at 5 per cent, of the gross rental. . . The following statistical information is given:—Number of’ housing units let up to March 31, 1948, 25,226; book value as at March 31, .1948, £37,229,125; total amount of rent receivable from March 31, 1937, to March 31, 1948, £9,403,349; amount of rent in arrears at March 31, 1948, £6145; total amount of rent written off from 1937 to 1948, £4745. The report said that viewed in relation to the capital investment and rent receivable, losses of rent and arrears were gratifyingly low.