Labour Takes Power To Build Shops, Halls, Libraries Etc,

Northern Advocate, 10 December 1937, Page 6

Labour Takes Power To Build Shops, Halls, Libraries Etc,

[Per Press Association. Copyright.! WELLINGTON. This Day. rpHE MOST IMPORTANT MEASURE TO BE CONSIDERED BY THE HOUSE OF REPRESENTATIVES YESTERDAY WAS THE STATE ADVANCES CORPORATION AMENDMENT BILL. The second reading debate began at the afternoon sitting, and carried on until after 11 o’clock last night, when the Bill was read the second time. It was then quickly put through the remaining stages and passed. Moving the second reading, the Minister of Finance, the Hon, W. Nash, explained the clauses of the Bill, which, ho said, extended the definition of local authorities under the Act to power boards, harbour boards, borough and county councils and municipal authorities. Clause three of the Bill made the State Advances stock and bonds trustee securities. ’ Another provision in the Bill removed the income disqualification for the granting of special loans for ordinary individuals. Previously there was a limit of £6 per week for a man with a wife and three children, hut this limit has now been removed. There was, however, a limit of £1250 to the amount of a special loan which could be granted. This was to prevent special loans being granted for the building of houses, say, up to the value of £5,000, but there was nothing to prevent ordinary loans of up to 6G 2-3 per cent, being gi anted in the latter case.

Authority to Build Shops, Etc. He went on to state that another section of the Bill gave the Government the necessary authority for the building of shops, halls, libraries, etc., in housing areas, for leasing. There was no idea of building shops to compete with existing ones. The Minister would also be able to fix the rents of all State dwellings and facilities for extending the granting of loans in rural areas for building houses were also included in the Bill. In reply to Opposition questions, the Minister, added there was nothing the Government would not do to provide houses for rural workers, provided the State could get priority in the case of mortgaged properties.

It was noh'the job for the State Advances Corporation to build shops and public buildings, but for private individuals and local bodies, ana the Government, by its provision for the leasing of these buildings, showed that it intended to retain control of them permanently and that the lessee would •never be in a position to own them.

Adequate Housing Important

Mr J. A. Lee (Govt., Grey Lynn) pointed out that during the depression years, when, building costs had nevei been lower and there was any amount of labour available, no houses were built. The Government’s approach_ to the subject was that adequate housing was as Important as good housing and good education. It had made for greater provision than the past Government in its assistance to private enterprise, and, if private enterprise did not do the job, the State must do it for them. In answer to a question by Colonel J. Kargest (Oppsn., Awarua), Mr Lee said that State houses were now ;being built at about £1 per foot, against 18/? when the housing scheme was commenced at Lower Hutt.

Open to Criticism.

Sir Alfred Ransom (Oppsn., Pahiatua) said there were many provisions in the Bill which would be helpful and useful, but there were others which were open to criticism. One was that dealing with the building of shops and other public buildings and the proposals of the State that those shops, etc., should be leased.

“Grossly Unfair.” Mr Hargest asked if it were a fact that people getting over £6 per week were being given Government houses. Mr Nash: Yes, the question of hardship has to be considered. Mr Hargest continued that he was glad that was so, because, otherwise, there might be too great a percentage 1 of low-salaried people who could not ■ meet their obligations in Government houses.

He knew of some people in the Hutt. Valley, who were in good jobs, who had got Government houses.

Mr Nash (in whose electorate Hutt Valley is included): That is grossly unfair. .1 don’t know a single person in Hutt Valley who has a Government bouse.

No Imputation Intended,

Mr Hargest said nothing had been further from his mind that the imputation which the Minister had taken from his remark. He did not mean what the Minister had taken from his remark at all.

Mr W. J. Broadfoot (Oppsn.. Waitorao) said the old system of housing subsidies was a very excellent one. He was afraid, the Government’s scheme would result in a loss to the taxpayer, and there would bo a dip into the National Exchequer to make up that loss.

The major effort for housing, he thought, should have been made for the Public Service.

Mr H. G. Dickie (Oppsn.. Patea) said he did not view the project of the State going into the business of building shops for letting with any enthusiasm. a statement which was supported by Mr H. S. S. Kyle (Oppsn,. Riccarton’).

Payment of Rates,

Mr R. A. Wright (Independent., Wellington Suburbs) raised the question of the payment of rates, suggesting that, in the case of State houses, an allowance should be made in connection with rentals for periods when the houses might be empty. The Government was on the road to becoming the most glorious landlord, and. in his experience, landlords were net popular. He though the Government would find itself in trouble with the huge system of landlordism which it had undertaken.

Mr H. M. Christie (Govt., Waipawat said the Government was setting; out to build what practically amounted to suburbs, under its housing scheme, and surely it was entitled to provide shops for the convenience of the occupants of State houses. Under the old State Advances scheme, he said, there had not been a complete enough system of supervision. Disadvantages of Ownership,

Mr C. M, Williams (Govt.. Kalapoi) said from the Socialist point of view there was no more objection to a person owing his own house than there was to his owning the suit of clothes on his back, but he would point out that there were grave disadvantages to the individual in the ownership of a house property in the event of his removal from one part of the Dominion to another. In that case, instead of the individual owning the house, the house owned him. Mr K. J. Holyoake (Oppsn., Motueka) said the Government had not done as much as private enterprise would have done had it boon loft alone. He thought the homes were far too expensive for the working man. Mr S. G. Smith (Oppsn., New Plymouth) said the Bill, to him. seemed an admission by the Government that it had failed to deal adequately with the housing problem. Homes For Rural Workers.

Mr W. J. Poison (Oppsn., Stratford) said he had been very interested by the Minister's statement that, the Government would go to the limit to provide houses for rural workers. He wished to assist m that and he suggested that the problem be thoroughly investigated. The Minister of Finance, in reply, said the houses being built by the State were far better than those built previously. With regard to rentals, such houses as the State was producing would cost 35/- to £2 per week if let by private individuals.

Referring to the State Advances Corporation’s intentions with regard to the building of houses, the Minister said that if a person of good character, with a suitable section, wished to build a house, the Corporation would have it built for him in his own name. Even if a person of good character did not have a section. Hie corporation would advance BO to 90 per cent, of the cost of a house and section, and provision was made in a case where parents died tor the children to take over Hie home.

No Transfers For Profits;

No transfers of houses for profits would be allowed. There would be no lotting or nub-letting, and if the owner were transferred to another town, an endeavour would be made In find a State house in that town. The Bill was read the second Lime at 11.30 and was put through the remaining stages' and passed.