WORKERS HOMES.

New Zealand Herald, Volume XLIII, Issue 13225, 10 July 1906, Page 3

WORKERS HOMES.

> Sir, —There is a somewhat misleading »en« fence in .the Heeald of Thursday,'' where it '( is stated that the "rent of .thai workers' homes will bo regarded by the Government as & weekly instalment on the purchase of the property."- If you will turn to section 10 of Ihe Workers' Dwellings 'Act you will see that a lessee may acquire the : freehold (a) by monthly payments ovef a period of 32 years at the rati! of eight per centum per annum on the capital value (being five per centum for rent, one per can turn lor depreciation, and two per " turn for" capital value) in addition to the cost of insurant-is as aforesaid; (b) by monthly payments over a period of 41 years at the rati* of »ix arid *- half per centum per annum on the capital value (being four per centum for rent, one per centum fox depreciation, and one and a-half per centum capital value) in addition to the cost of insurance aa aforesaid. The rent, 'it will be seen, is no part of any instalment which may be paid for the purchase of the property. Supposing, for instance,"' that the property is worth £400, a £350 house and £50 section, and the lessee elects to acquire the freehold by payments extending over the 32 years' term, it will work out in this way: Eight per centum per annum for interest, depreciation, and instalment of capital value, £32 per annum; say, £3 per annum for insurance and £5 per annum for workers' railway tickets. That » approximately 15s 6d per week for rent, in; eluding instalments sufficient, to pay off the capital value of the home in 32 ypsirs, and conveyance to and from the city. I believe I api; right in saying there (ire Very few workingmen who could afford to pay 15s 6c per week for the purposes mentioned, Tfeos« who can afford to do so do not require the assistance of the Government. There appears to me to he a glaring piece of injustice in connection with the schema in this way: The tenant who desires to take advantage of the instalment system is compelled for depreciation to pay one per tent urn' per annum for the who!« term, whether 32 or 41 year,', mid the full value for the property as well. I think an actuarial calculation would show that in such case* there would be a net profit, to the Government of from 50 to 75 per cent, on the cost of the building and a corresponding loss h> the worker. Of course it is generally understood to be the 1 icy of the Government to discourage freehold tenure, oven if the title provided for in the Act can be described as freehold, which it certainly is not according to the principles of British law on the subject, because even if " a worker" manages to pay for his home he cannot dispose of it ;; either by salo or will without the consent of the Land Board or the Government. The difficulties placed in the way are sc. many that I cannot' imagine many of the tenants ' being successful in becoming their own landlord';, and if we had the option I for one . would certainty prefer the scheme outlined by Mr. Silas soy of allowing the worker to'; select his own section and then assisting him to build his house according to his eirc«m*> stances and taste. lsa'K«SSTfi.O. v