HOUSING SCHEME

New Zealand Herald, Volume LXXIV, Issue 22864, 20 October 1937, Page 17

HOUSING SCHEME

VIGOROUS DEFENCE STANDARDS AND RENTS HIGHER COSTS JUSTIFIED [by TELEGRAPH—SPECIAL reporter] WELLINGTON, Tuesday ( vigorous reply to criticism of the Government's housing scheme was given by Mr. J. A. Lee, Parliamentary I nder-Seeretarv for Housing, during the financial debate in the House o? Representatives to-day. A arious factors had contributed to the housing shortage experienced in New Zealand during the last few years, Mr. Lee said. However, what made the position really acute was the demand for a higher standard of housing. The Government had lifted the standard of living for the overwhelming majority of the people and immediately a shortage of housing had become apparent. Private Enterprise Criticised

"Private enterprise has never made a serious attempt to tackle the housing problem," Mr. Lee continued. ''Had it not been for the State advances system in New Zealand we would have been faced with an even more serious shortage of houses than that which we are endeavouring to overcome to-day. Whatever criticism wo may oiler of the old State Advances Department, the fact remains that it did build houses."

In dealing with the problem the Government had to contend not only with a shortage of houses, said Mr. Lee, but also with a large untrained army of unskilled men—a legacy from the reactionary policy of the previous Government. Houses were being built for renting because the people were so scared of the possible return to power of the last Government that they would not build their own homes. Factors in Costs Much had been made of the increase in the costs of housing construction, Mr. Lee continued. There had certainly been some increase, but to a large extent it was justified by the fact that young workmen were being trained as "builders and carpenters. This represented a direct saving to the Employment Promotion Fund.. But rising costs were not due to Labour's administration. The rearmament programme overseas had given a terrific upward trend to housing costs in Great Britain, the United States and Australia and it was probably only in New Zealand that an upward trend was noticeable in actual building activities.

Opposition members had stated that! the cost of house building; by private enterprise worked out at lis a st(uare foot, but that figure was absolutely incorrect, Mr. Lee said. In 1928-29, according to figures supplied by the Government statistician, the cost of housing worked out at 16s to 18s a foot and that for a house of lower standard of construction than the present Government houses. "Quite apart from that." Mr. Lee stated, "it is just as well to admit that high costs form part of this Government's policy. We hold that an increase in production should be reflected in an increased standard of living. For instance, the houses we are building to-day are capable of improvement and they will certainly be improved. It may be possible for us before long to increase the size of the rooms. At the moment we cannot do that, but we will do so as soon as possible." Question ol Rents The question of rentals had also given rise to some criticism. Mr. Lee continued. At Miramar. in Wellington, there were on opposite sides of the street houses just erected by the present Government and houses which had been built bv a previous Government. The older houses were good—he was ignite prepared to admit that — and Wellington would have been poorer without them. However, the rent for one of the new four-roomed houses was 2os a week, but the total annual charges on a four-roomed house on the other side of the road was £lO4 6s Bd. "The figures have been examined," said Mr. '"Lee. "and T have been informed that in the case of the older house which 1 have mentioned it will take 103 vears for the principal to be liquidated. It is far better to build houses for renting at 25s a week than to perpetuate that state of affairs. There is security of tenure so long as the tenant plays the game." Summary of Activities The Housing Construction Department. Mr. Lee added, had been in existence for under a year. Already it had acquired land in 52 towns and was carrving out investigations tor the purchase of land in 22 other towns. It had advertised in contracts 1/4.5 houses for construction and of these there were 1220 houses either bmlt or in course of construction in 30 different towns. „ , i The total number of men employed last week was 1800 and there were manv others engaged in producing material. Under the whole scheme there were almost 4000 people gainfully employed in building assets and adding to the tangible wealth of iNew Zcaland.NEW HOPE FOR MAORI TRIBUTE TO GOVERNMENT [by TKIjKGKAI'H —SI'KCIATj importer] WELLINGTON, Tuesday "There is new hope for the Maori in New Zealand to-day," said Mr. K. T. Tirikatcne (Government —Southern Maori) during the debate oil the financial statement in the House or Representatives to-day. Light had been shed on issues_ which had "been clouded for years, said Mr. Tirikatcne. It was only through the activitv of the Labour Government that the Maori housing scheme had been started. It was not because the Maoris had spent all thdir money that they had come to he in a state of want, but simply because of the administration ot previous Governments which had deprived them of almost all they owned. Mr. Tirikatcne said the Maori appreciated the fact that lie was enjoying full rights of citizenship and that he had a definite place in the scheme of things.