HOUSING SHORTAGE

Gisborne Herald, Volume LXXIII, Issue 21979, 25 March 1946, Page 2

HOUSING SHORTAGE

STATE POLICY BLAMED PRIVATE ENTERPRISE “MAKING UP LEEWAY" “Mr. Meachen, M.P., Under-Secretary of Housing, is reported as saying at Dargaville that the Government wants private enterprise to build as many houses as possible, and that the objective of the Government is not to take over housing in general, but to make up the leeway,” says a statement by the Associated Chambers of Commerce of New Zealand. “Following so closely upon the publicity attaching to the handing over of the 20,000 th Stale House, this comment by Mr. Meachen might, well be construed by returned personnel and others to mean that it is the fault of private enterprise that there are not enough houses to go round. The plain fact is that private enterprise is not being encouraged by the Government to build houses.

“In the best year for State house building, namely, 1939, the figure for State houses in Wellington and Lower Hutt cities was 700, and for private enterprise 500, total 1200; but in 1930 —the best year of performance by private enterprise, and when no State housing scheme operated—private enterprise accounted for 1400 houses in Wellington and Lower Hutt cities. Enterprise Discouraged “The introduction of the State housing programme, together with restrictive legislation, discouraged private enterprise to an extent which has been made up by the State house building so that, prior to the war, the combined efforts of State housing and discouraged private enterprise were not producing houses equivalent in number to those produced by private enterprise alone prior to the depression. “How has private enterprise in housing construction been discouraged? Firstly, many small people used to build houses to let, as an investment, to provide a steady income. Secondly in the past the small builder played an active and useful part in providing houses in the community, by the construction of individual units. Both these types have disappeared. Why? Because of successive Acts of Parliament in favour of tenants and because of unsound financing by the Government of the State housing scheme. State House Cost, “The total average cost of a State house to-day, including land and incidental expenses, is £IBOO, and the outgoings on such a house would be in the vicinity of £2 3s 6d a week. Yet the Government lets State houses at rentals averaging under 30s a week, and the whole of the community is making up the difference by a subsidy provided from taxes collected from the community. “Private investors who used to build houses for letting, also small builders, cannot compete on these terms, so they do not build any more. Notwithstanding, Mr. Nash has stated he will not charge State tenants £2 3s 6d a week: very well, then Mr. Meachen cannot expect private enterprise, under such * conditions, to be able to make up the gan left Kv State housing.”