The Hawera Star FRIDAY, JANUARY 27, 1933 BRITISH HOUSING.

Hawera Star, Volume LII, 27 January 1933, Page 4

The Hawera Star

FRIDAY, JANUARY 27, 1933 BRITISH HOUSING.

Delivered every evening by 5 o dock in Haveera, Manaia, Kaupokonui. Otakeho, Oeo. Pihama, Opunake, Normanby, Okaiawa, Eltham, Ngaere, Mangatoki, Kaponga, Awatuna. Te Kiri, Mahoe, Lowgarth. Manutahi, Kakaramea, Alton. Hurleyville, -Patea, Whenuakura, Waverley, Mokoia, Whakamara, Ohangai, Meremere. Eraser Road and Ararata.

The recent introduction of nn important new Housing Bill in the House of .Commons provides evidence that Great Britain is not immersed in major international problems connected with .the slump to the exclusion of subjects of social reform. For the last fourteen, years the provision of houses for the working classes has been a constant problem. After the wmr the problem became acute. Owing to the withdrawal of labour from house-building for four years l there were formidable arrears to be made good l at a' time when skilled labour was limited, costs were rising, and the working classes were not able to pay high rents. Inadequate housing became .one of the most aggravating causes of social discontent. To the credit of Great Britain a. tremendous campaigning ardour was brought to the task with the result, that nearly 2,000,000 houses have been built in the

post-war years, 1,100,000 of them with the assistance of subsidies from the State. This work has been unrelaxed under the National Government, 202,000 houses having been’built during its first year of office. But to-day, in spite of this prolonged effort, the supply is still far .Short of the demand; and it has been repeatedly pointed out. that housing presents an opportunity for great constructive work which at one and the same time will absorb unemployed persons and increase the capital wealth of the country. Till recently the State subsidy has been unavoidable.' Without it, working-class houses, which could be let at a rent within the means of the poor, could not be constructed. But though unavoidable, it was an evil, for'the operation of the subsidy tended to send up the price of building raa tcrials, and it made private builders unwilling to enter into competition against subsidised houses. But to-day prices are lower. The cost of construct' ing a working man’s dwelling has fallen te a figure very little above that which will yield an economic rent —reckoned at about 8s a week. Capital, also, since the war loan conversion, has become available at cheap rates. Under the new Bill the State subsidy will cease. Owing to- the fall, in building costs and the Tow price of money it should no. longer be needed. Private construction is to be en’couraged by guaranteeing a large proportion of the advances made by building societies. These societies are generally willing to advance 70 per cent, of the cost to a borrower who wishes to build dwellings for (letting. The Bill provides that a further 20 per cent, may be added, to the advance under the joint guarantee of the Government and a local authority. There’ is little doubt that in pre-. sent circumstances this measure will afford great inducement's .to private enterprise to renew competitive building on a large scale. No,t since the war has there boon so favourable an opportunity' of getting this great industry’ back to a self-supporting condition under which decent, houses may be erected and let to .tenants at economic rents. This highly’ satisfactory result is in great measure due to the prudent financial policy' pursued by’ the National Government.