PRACTICAL POLITICS.

New Zealand Herald, Volume LVI, Issue 17327, 26 November 1919, Page 8

PRACTICAL POLITICS.

An interpretation of the Government's housing policy in its practical operation has been given in a pamphlet issued by the Labour Department. The Act provides for the payment of interest at the rate of 4i per cent, on the principal debt of the tenant purchaser, with a sinking fund to extinguish the liability to the State in 30 years in the case of a wooden building, and 36| years in the case of a dwelling erected of more durable materials. The Department calculates that the payments required to meet interest and sinking fund will probably not exceed 17s lOd a week for a wooden house costing, including the section, the maximum of £775 allowed by the Act, and 18s a week for the brick' or concrete house costing £850. With the addition of insurance and local rates these amounts are increased to 20s lid and 20s respectively. These are the maximum rates, and the economy effected by the Government's policy of buying land in large blocks and erecting concrete houses on a wholesale scale will probably keep the actual cost well within the statutory limits. Even presuming that the worker who participates in this scheme is "required to pay £1 a week for interest, sinking fund, insurance and rates on a concrete house, is it reasonable to pretend that he is not being placed in a highly advantageous position, attainable by every industrious and thrifty worker in the country? The country has been offered a scheme of workers' dwellings at 10s 6d a week —to which insurance, rates and maintenance must be added. It depends absolutely upon the agreement of the depositors in the Savings Bank to the investment of the bank's funds at 20 per cent, below the rate otherwise available, and it has not yet been demonstrated to be practicable in other respects. The Government gave no rash undertakings regarding the cost of its scheme to the individual. That has now been calculated by the Labour Department, and as large numbers of houses are being erected under contract, it may be presumed that the original estimate of capital cost has been confirmed. There is, therefore, nothing visionary about the Government's policy. It is a straightforward attempt to provide decent, substantial housing, and all who take advantage of it will have the satisfaction of knowing that they will eventually become the owners of their homes solely by their own thrift, without the aid of any political expedients.