CHEAPER HOMES

New Zealand Herald, Volume LXXIV, Issue 22628, 16 January 1937, Page 16

CHEAPER HOMES

'GOVERNMENT HOUSING MR. SAVAGE'S CONTENTION SAVING ON LAND COSTS {BY TELEGRAPH —PRESS ASSOCIATION] WELLINGTON, Friday Tho contention that the Government's housing scheme had resulted in cheaper homes for the people was made to-day by the Prime Minister, the IH. Hon. M. J. Savage. He quoted instances in which the Ministry of Housing had secured sites for houses at a cheaper price than hitherto ob-

tained.. If the new Ministry of Housing had gliown one thing more than another, r-Md Mr. Savage, it was the ability to effect substantial savings in the cost of land that was being acquired for housing purposes. A moment s thought would show why that was so. In the days when tho housing policy of tho Government was confined to advancing money to individual homo-builders to buy land, the selling agency had to load to tho cost of each section the cost of carrying somewhere between 20 and, 50 clients to each section before the ; sale was made. This resulted in a tremendous inflation of costs. Investigations were being made in practically all secondary centres in New Zealand with a view to securing land for housing purposes, added Mr. Savage, and again it would be only true to say that tho offers of suitable land were in excess of needs. The price, at which sections of land were beinc offered was so reasonable that the department could ignore a person who was trying to drive a harsh bargain. If' land could be acquired in the larger cities for anything between £IOO and £l5O a section cheaper than bad been paid in the years between 1922 and 1929, it could be seen that the Ministry of Housing had that margin. with which to offset the effects of the 40-hour week, but it would bo found later on that the capacity of the department to negotiate, purchases of land at low price was only equalled by its capacity to enter into reasonable agreements for the supply of other basic materials, about which a statement would be made later.