OVER HALF-MILLION LOSS ON STATE-HOUSING OPERATIONS DURING LAST THREE YEARS

Gisborne Herald, Volume LXXVII, Issue 23359, 15 September 1950, Page 7

OVER HALF-MILLION LOSS ON STATE-HOUSING OPERATIONS DURING LAST THREE YEARS

(Special)

WELLINGTON, Sept. 15

According 1 to official figures a house which cost £BB3 to construct as a State rental house in 193 S cost £1829 last year for equivalent size and quality, stated Mr. B. V. Cooksley (Govt., Wairarapa) when speaking in the Budget debate in the House of Representatives last night.

Tie did not blame 1 he previous Government for that, but he did criticise its policy of charging a similar rent for a house costing £1829 as for a house costing £BB3, added Mr. Cooksley. The accumulated loss on State-housing operations for the last three years was £524,000. It was not “Government” money, but the people’s money which had to meet that loss.

AVhat would happen to the Public Trustee if lie used the funds under his control in such a way? asked Mr. Cooksley.

Although the rents for new tenancies had been raised by the Government recently they were still very reasonable. That would begin to put the State rental-house business on a better footing, but the department's report had made it clear that the losses would take years to recover. The debate on the Budget was still in progress when the House rose last night. Inquiries by the Leader of the Opposition and replies by the Prime Minister. Mr. S. G. Holland, indicated that it was hoped the debate would conclude next Thursday.