“STATE BECOMING SOLE LANDLORD”

Northern Advocate, 10 December 1937, Page 6

“STATE BECOMING SOLE LANDLORD”

I Per Press Association. Copyright. 1 WELLINGTON, This Day.

Criticism levelled at the Govern -! merit by the Leader of the Opposition, the Hon. A. Hamilton, when the House of Representatives was debating the State Advances Corporation Amendment Bill yesterday, was that the State was rapidly becoming the . sole landlord in New Zealand. I The corporation, he Said, was one of the most important institutions in New Zealand, having over £56,000,000 under its control. Last year its net income was £467,000. The Govern- j ment had failed to see the difference i between the corporation functioning as a useful State institution and the State entering into a scheme of building houses to let. I He did not consider it advisable j that the State should build houses to j rent to the people. It was also debat- j able whether it was wise for the Gov- I eminent to take the power to build shops, libraries and public halls. j Large Rural Population Needed. One of the troubles which might arise was from the building of too many houses in the cities. What was necessary was a large rural population in New Zealand, but what was being done today was the provision of all the comforts and conveniences imaginable for city populations at the expense of the country. The State was becoming the great landlord of the Dominion and was rapidly becoming the sole landlord. It was doubtful whether the State could do better than private enterprice could do with proper encouragement.

Mr Hamilton continued that if the Government took a register today to ascertain the number of building tradesmen who had gone into other occupations, it would be surprised at the result.

Mr J. A. Lee (Government—Grey Lynn): Would you advocate the consription of -labour?

Mr Hamilton: No. He continued that the fact remained that building tradesmen had gone into other Dedications.

Unfair Competition.

Before the Labour Government came in, the private building of houses was proceeding well. Mr Nash: That is why there were. 20.000 houses short.

Mr Hamilton said that many small builders would not work for contractors. The State had entered into unfair competition with the builders. It received its money at If per cent and private enterprise could not compete against that. No doubt there would be some lososs- the taxpayer would be asked to pay. He asked whether the costs of the department were loaded on to buildings. Mr Lee: They are all charged up to the houses. None will be charged on the taxpayer. Mr Hamilton added that there -was no better scheme for the job than the building society, and these should be encouraged by the Government to a greater extent. There was no doubt about it, it was a definite asset to the community that the people should own their own houses.