HOUSING PLAN

Manawatu Standard, Volume LVI, Issue 152, 29 May 1936, Page 8

HOUSING PLAN

NEEDS OF THE COUNTRY. ANOTHER BILL PROMISED. (Bv Telegraph.—Special to Standard.) { y WELLINGTON, May 28. The Government’s future housing Bill was mentioned in the House of Representatives to-night when the Minister of Finance (Hon. W. Nash) was discussing the State Advances Corporation legislation, which includes some financial provisions for this progi amme and constitutes the corporation as the administrative authority once the houses Britain, said the Minister, had spent in ten years between 150 and 200 millions on housing, and this Bill proposed to make loans to local authorities to enable them to introduce housing schemes. He was not able to indicate the interest rate at present. “I don’t think members realise the traoedv owing to the shortage ot houses in this” country,” exclaimed Mr Nash, “and the suffering experienced by a tremendously large number of people. During the past four years the. average number pf houses built was 1/00 t0°2500 per annum, when the Dominion required at least 5000 new houses yearly. Therefore the shortage was between 16 and 20 thousand dwellings, which meant that there was that number of families not properly boused, and the reactions therefrom were really harmful from a social point of view. This shortage was being exploited by some landlords, but, asked the Minister, what ..was going to happen when the corporation could advance more money? There was a purpose behind the Bill. If they went to 95 per cent, of the security in advancing loans, or even greater, what would happen? Unless steps were taken to prevent it, it would be that all the advantages the State was willing to provide in connection with the provision of homes would be taken away by the land agent, the land-grabber, the landowner and those controlling the raw materials from which houses were constructed. They would take their share of advantages provided by the State. The Government would have to find a way to stop this, though it would be difficult. However, those concerned with the real prosperity of the Dominion must realise that they would do better by keeping land values at a normal basis. If not, then the Government would take steps to prevent them from benefiting from the efforts of the State. Mr H. S. S. Kyle: The usehold? The Minister: That would be splendid. I don’t know any better way of ensuring that if you want to use the facilities of the State for building homes that benefit shall be provided only for those requiring homes. I don’t know of any better principle than the usehold in the general sense of the term, and we will encourage it. Hon. A. Hamilton suggested from the Opposition benches that the Bill made practically no provision for a housing policy; it only transferred to i the State Advances Corporation two Housing Acts, one passed in 1919 and the other passed in 1922. Housing today was a problem, especially in the city of Wellington, but in Invercargill, where lie lived, it was not a problem, as a remarkable amount of housebuilding had been done there in the past few years. Housing was a social problem, he continued. It was a .national duty to provide good housing for the people, hut he questioned -whether any system was as good as that of the building societies. He commended to the attention of the Minister the work of the building societies in Southland. It was sounder for the State to assist in financing the building of houses than to assist in running businesses or farms. There was not so much objection to tlie State lending up to 80, 90 or 100 per cent, on a home as to lending for industry or on a farm, aiid he thought there should be a margin for the lender in the latter eases, even when the State was the lender. If the provision for lending up to 100 per cent, was confined to houses only, that would not be so dangerous and would not tend to create a lack of confidence. RISING COSTS.

There was nothing the Minister would be so embarrassed about as rising costs, continued Mr Hamilton. If he tried to keep costs from rising he had a big task ahead. Some of the extra costs would have to be passed on. It was estimated that labour costs, direct and indirect, were something like 80 percent. in building. The price of houses must go up, he thought, and cheaper rents were desirable. He was often puzzled when he heard that acceptable houses in Britain were being let at 2s to 7s a week. That could not be done here.

“Do you think we are passing this legislation to put money into the pockets of the people who sell land or houses?” asked the Premier (Mr Savage), at a later stage. He asked the Opposition and the people not to worry about the speculator. “He may win the first round, hut we will win in the finish, because we have power to legislate.”