STATE HOUSING SCHEME.

Manawatu Standard, Volume LVI, Issue 246, 15 September 1936, Page 6

STATE HOUSING SCHEME.

The housing scheme of the Government, prepared by Mr J. A. Lee, Parliamentary Under-Secre-tary to the Minister of Finance, on a brief examination tempts one to say that it looks extremely well on paper; in fact it looks too good. If, however, it can be carried through as adumbrated by the Minister, there will be mucii reason for satisfaction. Housingplans, like town-planning, are apt to break down. At one time it was all town-planning, which was said to be essential for the welfare of the people, but we cannot call to mind a single successfully planned town. Lut housing is different. There is a definite shortage of houses, but the number wanted may be exaggerated in view ol the fact that private enterprise has been doing a good deal towards meeting the shortage, and more would have been done but for the difficulty of finance. Private lending on mortgage is almost a thing- of the past, and that has had retardingeffects. Still the building societies have rendered very great assistance, and arranging finance with the building societies is not a difficult matter. In Britain the Government relied a great deal on the building societies to help in relieving the situation. The shortage of houses in the Dominion originated when the moratorium and the rent restriction legislation became operative; that scared private enterprise out of the field. In the memorandum issued by the Government there are profuse promises of relying upon private enterprise, but this reliance is hedged in with restrictions, and it is therefore doubtful whether private enterprise will be tempted into the building business. It will be a prosperous time for architects, carpenters, joiners, plumbers, and all the others associated with the building industry, and all will be glad that their services will be in demand. On paper, as we have said, the scheme looks good, and if the achievements at the end of two years are as satisfactory as the Government expects, it will be entitled to the wholehearted congratulations of the public. The financial aspect of _ the scheme is one that will receive a mixed reception. The Douglas Credit apostles should be all pleased, and so should the Socialists in the Labour Party, for that nebulous thing, the public credit, is to be used; that is to say, the Government is to give effect to its monetary policy by the direct use of the public credit. The Reserve Bank is to provide ,£3,501),0UU, and thus in the last analysis the housing scheme of the Government means the beginning- of currency inflation for which the country will have to pay later on. We will not, however, attempt any predictions of disaster and so forth, but will content ourselves by saying that using the public credit means borrowing. When we float a loan in London we pledge the public credit, and the housingscheme means borrowing.