HOUSE BUILDING

Grey River Argus, 13 May 1938, Page 10

HOUSE BUILDING

LABOUR PLAN HELPS. DUNEDIN, May .9. The question of assisting in the solution of the housing problem has occupied the attention of the Laboui" majority of the Dunedin City Council since the elections of 1935. The first concrete attempt to do something in this direction was made in February, 1936, when the council

decided to reduce the price of sections at Clyde Hill by nearly one-third of their market value, in order to encourage people to build new homes. Owing to the difficulty of procuring satisfactory financial arrangements, however, there was no response to the council’s advertisment calling for applicants for the Clyde Hill sections.

When the Government announced its scheme in 1936 for financing local bodies which wished to undertake the building of homes for workers, the City Council decided to take advantage of this offer. On February 1, 1937, the council

again decided to call for applicants for homes under the following conditions: Each applicant to pay a minimum cash deposit of £25; the loan to be paid over a period of 30

years, on the table mortgage plan, on the basis of interest at 31 per cent.

This, together with the repayment of the principal, would amount to £5 8s 21d a £lOO on the cost of the land and building.

The first resolution to borrow £lOO.OOO was carried in March. 1937, and at that time, of course, it was not favourably received by anti-

Labour members of the council; who thought that the city was undertaking an obligation mat really belonged to the Government. The press was of a similar opinion. Of course, it was a new venture.

Conservative-minded people avoid new ventures. The council’s venture, however, proved such a success that in August, 1937. it was decided to borrow another £lOO,OOO. This second £lOO,OOO loan has now been exhausted, and it is necessary to borrow a third £lOO,OOO in order to meet the demand made on by applicants. The houses are well constructed; New Zealand materials are used wherever possible; the designs are well drawn; every modern convenience is provided; and every effort is made to meet the wishes of the applicants. The homes are very commodious, the average size being 1215 square feet. The measure of success of the Dominion housing scheme, which is the talk of New Zealand, can be measured by the following figures; To March 28, 1938, there have been let

144 contracts—63 at Clyde Hill and 81 at other places than Clyde Hill. It is

the council’s policy to build for applicants in any part of the city or suburbs. The average loan that has been required, excluding deposits, is £1250 10s 6d per house. The average deposit received was £9O. The average contract price per house was £1046 13s lid.

One of the arguments used when criticising the council’s scheme was that the minimum deposit of £25 was

much too low. It was contended on behalf of the council that the scheme was instituted mainly for those workers who wished to own their own home and, whilst not in a position, owing to post-war depression, to put down a large deposit, could, if given the opportunity, pay off a home over a period of years on easy and reasonable terms. Th actual result, however, has been as follows: Of the 144 applicants, 47 paid a deposit of from £25 to £3O. Thirty-eight deposits ran from £5O tos£loo. Fourteen deposits ran from £lOO to £2OO, and 17 deposits were over £2OO It will be seen that the class of people applying for homes under the Labour scheme are those who have tried their best to put a little by and who are anxious to become owners of their homes. In cases where people have given deposits of over £2OO it is clear proof that they could build at the ordinary prevailing rate of interest. „

The council's method of procuring prices had enabled it to get the homes built at the lowest possible cost. The average cost works out at 17s 3d per foot. The builders who have been the successful tenderers for these homes are to be complimented on the fairness of their prices. It is clear proof that when the builders were given a chance and were informed that they would toe treated fairly, their tenders were as’ low as they could possibly- be. It is doubtful if any builder had made £3O to £4O per house outside of his own wa_ges.

The builders have treated the council fairly and the jobs they have produced are a credit to themselves and the council which undertook the scheme.

The highest cost per foot that the council had ever paid was 21 s 4d.

That was because the house was a small one and contained a fairly large amount of work. There were seventeen which have averaged 19s 2d per foot. The average cost, as stated above, was 17s 3d per foot.

Another result which is not to be overlooked is the beneficial effect on the building trade. There are in Dunedin about 90 builders who work on their own account. For years past most of them were hardly making ends meet. The council’s policy has .to a very large extent changed all this. Fifty-three have received contracts and. together with the workers they have engaged, several hundred men have been employed who othervvise might have been a charge on the State. That the council’s assistance in solving the housing problem is appreciated by the Government is proved by the following remarks made by the Hon. F. Jones, M.P., PostmasterGeneral: “It was particularly pleasing to him to know tha't the council was co-operating with the Government in solving the housing problem. He was not in favour of building cheap homes, because they were unsatisfactory for many reasons, mainly from the point of view of unkeep j and maintenance. lt_ is a much , sounder policy if we can raise the ' workers’ wages so that they can ( afford good homes.” This is exactly the Labour council’s policy, and will be continued if workers and the people generally return Labour to power on May 11.