STATE HOUSING BRANCH

New Zealand Herald, Volume LIX, Issue 18019, 18 February 1922, Page 8

STATE HOUSING BRANCH

DECISION TO CLOSE DOWN.

AMBITIOUS SCHEME ENDED.

STILL PROVISION FOR WORKERS.

[BT TELSQIOPH.—OWN COEEESPONDENT. ]

WELLINGTON, Friday. The housing branch of the Labour Department is to be closed down immediately. This announcement, made by the Prime Minister to-day, marks the end of an ambitious State enterprise. The housing branch came into existence after the passing of the Housing Act of 1919. Its task was to build homes in thousands, and its staff planned the work on a large scale. The branch was able to state in June, 1920, that it had about 300 houses under construction or completed, and was negotiating for the erection of nearly 800, but- th* results did not justify the high expectations. The branch's output in completed houses has been numbered by hundreds, instead of by thousands, and the cost per bouse bas soared persistently. The shortage of houses was more a ,r utc i in Wellington than in any other centre, land it was here that the housing bunch ! made its largest effort. The talc of its I misfortunes and miscalculations has been ! written at Miramar. When it started I operations the statutory limit of cost was i £775 for a wooden house, and £850 for j a brick or concrete house- The limit has i been extended periodically to cover ! actual costs, and it stands now under the | ; legislation of this year at £1150 for a | wooden house and £1250 for a brick or' concrete bouse. The obvious fact that the housing problem cannot be solved for the wageearners by the erection of such costly homes is one of the reasons for the staying of operations. The closing of the housing branch does not mean that the Government is going out of the business of providing homes for the people. The workers' dwellings scheme will remain in existence, and will be administered by the Labour Department. The advances to workers' branch of the State Advances Department will continue to operate. This branch lent £660,790 to 1358 workers for the erection of homes during the last financial year. The Government is still advancing money to local authorities within limits for the erection of homes, and it may be able presently to increase these advances, but 1 the attempt to solve the housing problem by the direct efforts of a housebuilding department staffed by Government officials is being abandoned.