WORKERS' HOUSES

New Zealand Herald, Volume LXXIII, Issue 22412, 7 May 1936, Page 14

WORKERS' HOUSES

SCHEME IN TASMANIA ASSISTANCE BY GOVERNMENT VISITING MINISTER EXPLAINS [BY TELEGRAPH —FRESS ASSOCIATION'] WELLINGTON, Wednesday Government housing activities in Tasmania were discussed to-day by the Minister of Agriculture and Forestry in the Tasmanian Government, the Hon. 1?. Cosgrove, who arrived by the "VVanganella. Added interest attached to his remarks in view of the recent announcement regarding housing in New Zealand made by the Prime Minister, the lit. Hon. M. J. Savage.

There was a housing shortage in Tasmania, Mr. Cosgrove said, and the Government realised that workers could not build homes for themselves without assistance. A housing scheme had accordingly been formulated and was working in a most satisfactory manner. The Government advanced 90 per cent of the value of a home and the worker was expected to find the other 10 per cent. Repayments were spread over 42 years for stone and brick houses and over 30 years for hardwood buildings. Interest was charged at 4J per cent, and 1 per cent was added as repayment. Saving Against Unemployment

In addition to payments of principal and interest made by the worker, any home owner could pay £5 or multiples of £5 into a fund administered by the Government. These amounts were not regarded as repayments of principal, but as savings against unemployment or other future difficulties. The Government paid 5 per cent interest on all moneys paid in, and the depositor could withdraw what he had paid in at any time. Although there was no restriction on withdrawals, the main object of the fund was to make interest and sinking fund payments, and during difficult times this was observed in almost every instance. Limit Upon Borrowing The Government did not allow workers to build homes they could not very well pay for out of- their earnings. A limit was placed on the amount any worker could borrow, and it was graduated according to the earnings of the borrower. The maximum amount that could be borrowed for one home was £I2OO, but the average worker was limited to £BSO for building and land. Sections in the suburbs of Hobart could be bought for £2 a foot, so a section with a 45ft. frontage was valued at £9O. During the last financial year £50,000 had been spent on housing through the Government, and it was estimated that £IOO.OOO would be spent during the present year.