STATE HOUSES

New Zealand Herald, Volume 81, Issue 25049, 13 November 1944, Page 4

STATE HOUSES

ATTACK ON POLICY INFLATIONARY FINANCE WRONG TYPE OP TENANT The national housing conference convened by the Associated Chambers of Commerce has launched a strong attack upon the State housing system on two main grounds, (1) that it docs not cater for tenants of the lowest income group, who alone merit the subsidy which the taxpayer is required to pay on tho inadequate rents at present charged, and (2) that the construction of State houses is financed through the Reserve Bank by unadulterated inflation. Referring at tho outset to the existence in every community of a lowest income group, the report defines such a group as one composed of people who, by force of circumstances, are physically ahd financially unable to solve their own housing problem. In New Zealand these include the recipients of social security benefits, such as widows with or without children and older people beyond full earning capacity, as well as others with very limited incomes. Responsibility to the Poor "If such people are unable to afford a satisfactory house," the report continues, "and no one will deny that they are entitled to a satisfactory house, then it clearly becomes a community problem to provide them with such nouses, and such provision must be made wholly or in part as a gift. The community is tho State, and clearly it becomes the State's responsibility to solve first of all the housing problem of the community's lowest income group." The report refers to tho Budget statemen'. of the Minister of Finance, Mr Nash, in 19.16, that £3,000,000 would be applied immediately to (he erection of 5000 houses. This meant, it points out, a total cost, inclusive of land, of £6OO a house. "Such a statement," says the report, "promised that the Government was setting out to provide low cost housing for the low income group. The looseness and inaccuracy of this statement _ have since been clearly shown, as it is a matter of record that very few, if any, State houses have been erected at a total cost, inclusive of land, as low as doublo the promised figure. Costs Kept Secret <*' On present-day costs it is likely that Stato houses, inclusive of tho cost of land, street and drainage services, together with production administrative costs, are in the region of three times the original cost target. The real cost of State houses is never disclosed Annual reports on the Housing Account show cumulative figures, but do not disclose the cost per unit, including land, services and production administration, from year to year. An independent cost analysis indicates increases up to 40 or 45 per cent since the inception of the housing programme." To show that State house rents are inadequate, the report states that the average fully-equipped small house costs not less than £IBO0 r , with land. On a State Advances Corporation loan of £ISOO, and allowing no interest on the owner's equity of £3OO, the total outgoings would be in the vicinity of £2 3s 6d a week. "Yet the State houses are let at rentals averaging under 30s a week," says the report. "How is this done? It is only possible because State housing is financed by the Reserve Bank at a rate of interest which is only a fraction of ruling rates. Housing accounts indicate that this rate averages approximately 1£ per cent. This is unadulterated inflation deliberate and continuous. The Tenant Aspect "This situation would not be so bad if State tenants represented those unfortunate lower group people to whom the community as a whole has a responsibility. Such, however, is far from being the case. All applicants for State houses are required to establish that they will be able to pay the rentals fixed, as only good, reliable, rent-pay-ing tenants are wanted in State houses. This requirement automatically eliminates the lowest income group, who are unfortunately obliged, as ever before, to house themsplves in such sub-stan-dard and slum houses as they can find within their ability to pay. "Proof of inability to pay a full rent, rather than proof of ability to pay," the report acids, "should be the qualification for allocation of a communitysubsidised house. There is room for a more modest house than the present Housing Department standard, and the widows and old folk for whom they should be provided would find such more modest houses infinitely preferable to the sub-standard and slum conditions to which they are at present condemned with no hope of relief. A few pensioners' flats have been erected by the Housing Department, but a totally inadequate number for the need." The report makes several recommendations regarding State housing, and these are given on page 6. FALL FROM TRAIN SOLDIER SERIOUSLY HURT (P.A.) WELLINGTON, Saturday An Army sergeant, Joseph Kavanagh, of Napier, fell from a train this morning between Ngahauranga and Petone and suffered head injuries. He was removed to the Wellington Hospital in a serious condition. DEATH FOLLOWS ACCIDENT Seriously injured wfcen the motor-car in which lie was a passenger overturned near Dairy Flat on October 28,- Mr Oscar O'Keefe, single, died in the Auckland Hospital at 10.30 last night. Mr O'Keefe was employed at the Coatesville afforestation camp in North Auckland. BOY CYCLIST INJURED When the bicycle he was riding was involved in a collision with a motorcar at the intersection of -Torrance Street and Pah Road, Mount Roskill, on Saturday evening, Richard Campbell Clark, aged 13, son of Mr J. Clark, of 2!) Torrance Street, suffered concussion. He was removed to the Green Lane Hospital in a serious condition, but showed some improvement yesterday. ACCIDENT ON BOAT Falling from a boat on to concrete while lie was working on the vessel at a slip in Poore Street, City, on Saturday afternoon, a dairy proprietor, Mr George Frederick Hitchings, aged 34, married, 0f.49 Wakefield Street, City, suffered concussion. He was taken to the Auckland Hospital and his condition is serious. MOTOR-CYCLE OYER BANK (0.C.) GISBORNE, Sunday When Mr Raymond John Preston, assistant-clerk to the Waiapu County Council, was riding a motor-cycle to Gisbome from Te Puia, his machine skidded and went over a bank at the side of the road. Mr Preston was'picked up and brought to the Gisborne Hospital in a serious condition. THE GREYMOUTH BAR (0.C.) GREYMOUTH, Sunday The bar at Grevmouth is ngain unworkable as a result of continued heavy seas. The Gabriella was able to enter port yesterday morning after lying in. tho roadstead since the previous morning, but the Karu, Poolta and Pakura are barbo'und with coal and timber cargoes.' The Kaimiro will also be ready for departure tomorrow. Hopes were entertained of the vessels leaving on tonight's tide, but a heavy swell continues on the bar. The Rata and the Karepo are in the roadstead waiting to- enter port. All outdoor sports at Grevmouth were cancelled at the week-end because of the bad weather. i