OFFER TO LOCAL BODIES

Kaikoura Star, Volume LVI, Issue 86, 2 November 1936, Page 2

OFFER TO LOCAL BODIES

LOANS FOR HOUSING An announcement that the Government intends to make £1,500,000 of the £5,000,000 appropriated for housing available for local authorities desiring Io conduct schemes of housing at a rate of interest of 3 per cent, was made by the Prime Minister (the Rt. Hon. AT. J. Savage). “It must be obvious,” said Mr Savage, “that the Ministry of Housing will not be able to inaugurate schemes for the four main centres, as well as every other city, borough, and rural centre in the Dominion, in the first few months of its operation. The necessity for overtaking the housing shortage is of considerable urgency, as is evidenced by numerous references in the daily Press, and local authorities arc in the position to help the Government and at the same time help their own communities tremendously by availing themselves of the generous financial aid now being offered by the Government.” “It should ho pointed out that it is in the interests of building organisations in every town that the local body should embank on a house-building scheme, thus giving employment to local building organisations, to local craftsmen, and to the local unemployed. Thereby, business conditions as well as housing conditions would be bound to show an improvement. No doubt many local bodies will prefer to engage in and control their own schemes rather than wait for the Government to prepare schemes for the erection of houses in their areas. Hence, both from the viewpoint of rehousing the people without delay and from the viewpoint of giving local industry an impetus it is to the advantage of local bodies to take full advantage of the Government’s offer. “The afore-mentioned sum of £1,500.000 will bo made available to local bodies at an interest rate of 3 per cent., the term of the loans being not less than thirty years, but, for the purpose of fixing rentals or conditions of disposal the Afinistry of Housing will approve of local bodies basing their figures on a rate of interest sufficient to allow a reasonable margin to provide, for all contingencies and liabilities. Under these conditions, all local bodies are expected to engage with confidence and enthusiasm, with resultant improvement to the appearance of their towns, to the trade of their business people, and to the employment of their own citizens.

Procedure Outlined “Before the application of any local authority for a special housing loan at 3 per cent, will be considered by the Local Bodies Loans Board, it will be necessary for it to prepare plans, specifications, and estimates for the approval of the Ministry of Housing. Loans will not be made available for any type of housing; for instance, loan would not be approved for a i scheme involving the construction of houses costing more than the Ministry of Housing believes to be a reasonable price for a worker’s home of high standard. To avoid misunderstanding and unnecessary delay, the Afinistry of Housing will be prepared to advise and co-operate with local authorities in the preparation of their schemes. “New Zealand Made” “It is intended that the money to be advanced to local bodies shall be used to build a house that, as far as possible, will be a New Zealand-made house. No loan to a local body will be approved where the quantity of foreign materials to be used is in excess of what the Department of Housing Construction believes to be essential. Where the Department of Housing Construction, by virtue of its large-scale operations can secure materials at a low cost it is hoped to be able to evolve a system under which local authorities will be able to obtain similar benefits. “Where local bodies have areas of lan I suitable cor housing and are prepared to furnish such land with utilities such as roads, lighting, drainage, etc., the Ministry of Housing will, at the request of the local authority, be willing to undertake the preparation and construction of housing schemes, the cost of same being charged to the local body loan.

Other ‘Schemes “While the £1,500,000 will no doubt be drawn on mainly by city councils, borough councils, and town boards desiring to erect necessary housing for their citizens and desiring to give useful employment to local building organisations, applications will also be considered from other responsibe authorities, such as harbour boards and power boards, which may desire to undertake schemes of housing construction for their own employees. It is intended that these funds should be used to erect high-grade low-price homes which, while within the reach of the average working man’s pocket, will, at the same time, be a credit to the Dominion. “Full details of the procedure to be adopted by the Ministry of Housing will be printed as soon as possible and circulated to all local bodies. “Already a strong desire to stimulate local building and local business by taking advantage of the Government’s proposals is in evidence in many localities; and no doubt, as the exceedingly favourable terms upon which the money will be available become (known local bodies will be only too pleased to co-operate with the Government in creating good social conditions based on sound planning.”