NATIONAL HOUSING PLAN
POSSIBLE DEVELOPMENT CLEAR OUT ACTION NEEDED STATEMENTS BY MR. COATES. A further indication that the Government is considering the development of-a national housing scheme for workers, was given by the Minister of Finance, Rt. Hon. J. G. Coates, in the House of Representatives yesterday during a discussion on the Mortgage Corporation of New Zealand Bill. ■The subject was raised first by Mr. D. G. Sullivan (Lab., Avon) who sought to know how workers would fare under the proposed corporation. Replying to several questions, the Minister said the corporation actually '•wo\rld go into the business of making new advances to workers for bouses. That, however, did not cover the whole question. “I know,” he said, “that nobody .can justify the position as it exists in some of our cities, and the necessity for improved housing conditions is, generally realised. Parliament must' be prepared to take very clear-cut action in this direction, for strong vested interests will have to be dealt with. I am speaking without the authority of my colleagues, but I can say we are examining proposals and methods which have been tried out in different countries. The methods adopted in Great Britain would need to be modified before they could be applied to New Zealand conditions, but they are all being investigated.”
POSSIBLE TO CLOSE DOWN. In reply to interrogatory interjections, Mr. Coates admitted that if the Mortgage Corporation Bill became law the State Advances Department could not receive further applications for loans. It was possible under the Bill to close down the department altogether. Mr. Sullivan later said that a progressive housing scheme would stimulate employment throughout the country, but that the terms of the Mortgage Corporation loans would certainly do little to improve the position. He hoped the Government would not put too great a burden on local bodies with any building scheme it brought forward. Even now they were losing thousands of pounds a year in collecting rents. If the Government were going to shelter behind the local bodies any housing * scheme could not be otherwise than ineffective. Mr. J. O’Brien (Lab., Westland), supported this view and complained about the “dosing down” of the State Advances Department. The Mortgage Corporation proposals would mean that hardly a working nan in the country could take advantage of the advances.
Mr. Coates said that apparently some members thought the workers’ branch of the State Advances Department was active, but it- had not been so for some time. It was not making loans.
Mr. W. Nash (Lab., H.utt): It has been making loans this year. Mr. Coates : Not at 95. Mr. Nash: Up to a fair amount. Mr. Coates: Not even up to 80. Mr. F. Langstone (Lab., Taumarunm) : Have you .stopped it? Air. Coates: No, the matter has not reached me. It is purely a matter of administration.
Continuing, Air. Coates said it had been asked what security workers on State Advances loans would have that they would he treated fairly by the corporation. The check was that the Minister had to consent to transfers. If a satisfactory arrangement could not be made the mortgage would bo handed back. He recognised that some of those occupying houses were unemployed, and he could clearly indicate that the policy of the Government was to see that in deserving cases protection was given.
“ROUNDING UP.” There might be circumstances where a “rounding up” was richly deserved, but generally it was not a man’s fault if he were unemployed, Mr. Coates said. He knew cases where regular payments had been made for 12 and 15 years and then the man could not keep up his payments, but no one would suggest that because a, man had lost his job he should lose all his equity in his home. Mr Coates said it might be necessary to continue the workers’ branch.
Replying to questions bearing directly on the Government’s housing plans,: Mr. Coates said the co-operation of .local bodies was wanted. What Mr. Sullivan had saidi about the difficulties was quite true, but ho thought the difficulties could be overcome. Mr. Coates said he wanted to get a practical scheme to meet the problem, hut it would be- very premature for him as yet to say very much as details had to be worked out. There were at least three different methods of meeting the problem, and several schemes were being examined with a view to drafting legislation. One important decision was whether there should bo groups of buildings as in Great Britain. He thought the feeling in New Zealand was against that system, although it had been a great, success in Great liritain. Mi\ Sullivan: Can you advance, the scheme by calling the local bodies into conference ? Mr. Coates: Yes, hut the Government must have its plans ready first. We know what these conferences are. They go on for days unless a practical plan is laid before thorn. FATE OF DEPARTMENT. Mr. A. S. Richards (Lab., Roskill): You say that the State Advances Department is finished,
Mr. Coates: It may he necessary to keep a skeleton organisation in the department. We are not going to
force on the corporation mortgages it does not want. But I want to say that the big proportion of State advances are definite assets. It may bo necessary to hand over all mortgages to the corporation, but that can only be decided when the State Advances officers and the corporation confer. I take it they will then report toi the Government, which will make a decision.
Mr. W. E. Parry (Lab., Auckland Central) said that bad the Labour Party known what was contemplated there would have been a fight to the finish. The Minister of Finance kept referring to what was in the next Bill, but- nobody outside the Government knew wliat it was going to contain.
“We are asked to put the shutters up on the State Advances Department,” said Mr. Parry, “although no indication is given us as to how far the next legislation will fill the bill. Tt is not fair of the Minister, to a sic us to agree to such procedure. Surely the Minister, forbearing to turn the House into a secret) society altogether, will say what will appear in the new Bill to compensate for the destruction of this institution.”
NO CLUES AvS TO PROCEDURE. ’ Mr. P. Fraser (Lab., M ellingtcn Central) thought Mr. Parry’s request reasonable and justified. The House, he said, could not tell what was going to happen. It had bad the Minister’s assurance- that there would be no ejections .without his consent, but there had been no clue as to what the procedure would be. The State Advances Department at present gave mortgagors who were in difficulties the right to appear before a mortgagors! adjustment commission, but what was to be the procedure under the Mortgage Corporation for safeguarding the mortgagor ? The Minister made no reply except to say that he had no intention of going over the whole subject again. Air. R-. Semple (Lab., Wellington East) said he was somewhat concerned about- the fate of people who were struggling to keep up payments to the State Advances Office on houses they had built. Alany such persons had lost their houses because they were behind with their payments, and he sought an assurance that they would be dealt with fairly before they were handed over to the control of the Mortgage Corporation. He admitted I that the Minister of Finance had been very generous to many persons whose cases were almost- hopeless, but thousands were dependent on sympathetic treatment from the State.
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Hawera Star, Volume LIV, 6 March 1935, Page 11
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1,267NATIONAL HOUSING PLAN Hawera Star, Volume LIV, 6 March 1935, Page 11
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