HOMES FOR WORKERS

New Zealand Herald, Volume LXXI, Issue 21736, 27 February 1934, Page 5

HOMES FOR WORKERS

j GENEROUS SCHEME NEW SOUTH WALES PLAN REMOVAL OF SLUMS [from our own correspondent] SYDNEY, Feb. 13 Even the opponents of the Stevens Government in New South Wales admit that its latest proposals to assist the people to build new homes is on an extremely generous scale —another evidence of the courage that has marked the Government's policy since it assumed office and cleared up the wreckage caused by Mr. Lang. It is expected that tho first advances will be made next week. The scheme has a two-fold object; first, tho clearing of the slums i:i the city quarter; and, second, tho creation of work during the coming winter. If full advantage is taken of it, many branches of trade should benefit, and hundreds of people should be placed in a position whereby they will be able to live more contented lives. Tho scheme will be operated through the Rural Bank, all that remains to the State of tho New South Wales Savings Bank, which closed its • doors in tho course of the Lang regime. The bauk will advance up to 75 per cent of the value of the security, with a limit of £IOOO. On top of this, the Government will advance a further 10 per cent, leaving tho prospective builder to find only 15 per cent. It is claimed that no housing scheme propounded in Australia lias been so generous. If the bank advances the full £IOOO, the Government will advance £133 6s Bd, in which case the purchaser will have to find only £2OO. For cheaper houses the purchaser will have to find proportionately less. It is anticipated that most of the applications will be for cheaper homes. Under the old housing scheme financed by tho Government Savings Bank the average amount advanced was only £560. The interest charge on the Government contribution will not be more than 5 per cent, and may bo less. It will bo repayable in 10 years. The bank's advance will be repayable in 30 years, and ou an advance of £BSO on a property worth £IOOO the total weekly payments,. covering principal and interest, will be £1 3s 6d during the first 10 years and 18s 7d for tho remainder of the period of 30 years. One of the most important factors in favour of the successful operation of the scheme is the general fall in building costs in New South Wales. It is considered that this reduction amounts to almost 20 per cent and that the average worker will now be able to provide himself with an attractive home at considerably less than was the case a few years ago. In propounding the scheme, the Government has been impressed with the desirability of clearing all 6lum areas in the city. The average visitor in Sydney does not come into direct contact with the slum areas, but they undoubtedly exist, and are a blot on the city's good name.