BUILDING SUBSIDY

Manawatu Standard, Volume LIII, Issue 7, 6 December 1932, Page 8

BUILDING SUBSIDY

MERCHANTS’ RESOLUTION. Per Press Association. WANGANUI, Dec. o. A representative meeting of AYanganui timber and hardware merchants today passed a resolution describing the No. 10 building subsidy scheme ns a serious error as applied to tho erection of new houses. Tho resolution states: “That while tho No. 10 subsidy scheme ns applied to renovations anti certain classes of buildings is of assistance, we consider the scheme ns at present applied to tho erection of new houses a serious error. Any superficial stimulation of building, notwithstanding its temporary benefit to the building trade, is far outweighed by the further intensified depreciation of values of existing properties to tho extent of the subsidy. This serious dofeet has markedly further discounted equities in house properties of both private mid Government holding, and also section values. This lias made properties unpopular in the minds of lenders, so causing capital to lie withheld from building assistance, and to be directed to the restrictions of deposits and Government securities to the menace of trade and adding to unemployment. As a constructive proposal, it is urged that a scheme to permit of safe assistance to build through a redemptive free of interest mortgage as an incentive, in lieu of the present gift, is needed to overcome the defects of the present subsidy gift nnd restore much needed confidence in the first mortgage security of property.”