BUILDING HOMES.

Horowhenua Chronicle, 29 April 1937, Page 7

BUILDING HOMES.

LABOUR MINISTERS APPROACHED EFFECT OF SCHEME ON SMALL TRADESMAN (By Telegraph —Press Association.) WELLINGTON, Last Nig tit. The decline in the number of dwellings erected throughout New Zealand since the announcement of the Government's housing scheme and the problems which faced the building and allied trades and the home builder were discussed to-day by a representative trade deputation to the acting-Prime Minister, Hon. P. Fraser, and Mr. J. A. Lee Parliamentary Under-Secretary in Charge of Housing. Members of the deputation said they were very concerned with the amount the trade had fallen off during the last six months. There were a number of factors mitigating against smooth working between the State and private building enterprise, and it was suggested the Government arrange for more money to be made available for the purpose of building homes, mainly by making advances up to 85 per cent, instead of to 66 2-3 per cent. only. Builders and allied tradesmen greatly desired the Government to make a statement as soon as possible as to whether houses erected under the housing scheme would be made available for rental only or for sale and whether there was to be a salary bar in connection with the rental. A further request was that the Government announce the rentals likely to be charged.

Since the Government made known the new housing scheme there had been a serious falling-off in the number of building permits issued in the cities and larger towns of the Dominion. This could be attributed only to the fact that capital was shy and what mortgaged money was offering was available only on a very conservative basis. The deputation claimed it was the Government's intention in the first place to make funds available through State lending channels to permit private persons building how, when and where they liked and it was now considered the time had arrived when something should be done to stem the serious falling-off in the erection of private dwellings. It was also believed that if money was made available to private enterprise at the same rate of interest as charged by the State Housing Department it would stimulate home building. It was suggested a small committee be set up representing the trades covered by the deputation to confer with Mr. Lee and his officers to find out in what way private enterprise and State enterprise could best serve the public.

Mr. Lee said the State Advances Department was not starved for funds and had plenty of money available for loans for all purposes, but the money involved in the State Housing Department was money of a different kind altogether and for housing only. He admitted building costs had risen but at the same time fewer houses were built in New Zealand when costs were low a few years ago than at any other period in its history.

Between 1926 and 1937 more than 20,000 building permits had been issued, and during the past year since, loans in excess of 66 2-3 per cent, had been restored, 472 houses had been built, compared with none for the previous year. "In my opinion you builders could have done a lot more to assist yourselves instead of standing off and punching my nose. For one thing you could have worked in with us," Mr. Lee said. He said he wisneu '«; see a small cooperative contract given to the Wellington Carpenters' Union provided they faced .up to the conditions when the Housing Department could again turn its attention to Wellington. He wanted to deposit anything up to 20 plans on the counters at the main centres so that builders could quote immediately for jobs offering. "These difficulties may all arise without intent on anybody's part," said Mr. Fraser. "A statement will be made probably within the next fortnight or three weeks about the rent and cost of these houses. I will also look into the matters raised concerning the State Advances Department. The Government neither desires nor wishes to cripple the small builder. We want to give him a fair chance. There is no point in putting him out of business. If you builders can show us how, without sacrificing quality, to improve our houses, you will indeed, help us. ''