HOUSING PROBLEM

New Zealand Herald, Volume 81, Issue 25049, 13 November 1944, Page 6

HOUSING PROBLEM

CONFERENCE PROPOSALS LABOUR AND MATERIALS MORE LIBERAL FINANCE An expert analysis of the housino- ' problem in New Zealand has been com pleted by a national conference re Pr * senting all sections of the build;*" industry except the workers' union. The conference, which met in Welling ton, was convened by the Associated Chambers of Commerce. Its rebort circulated at the week-end, is criS of existing conditions and especially nf the State housing scheme, and present» 14 recommendations for reforms o„j future action. The conference was asked to review' existing impediments to a vigoroul house-building programme and to set out l means wherebv such a programme might be undertaken as a matter nf urgency. Many Bodies Represented Mr Stronach Paterson, president of the Associated Chambers, presided Six teen organisations or interests'were represented, including the FederatJ Builders and Contractors' Association Timber Merchants' Federation, Feder' ated Sawmillers' Association, other building trade bodies, the Institute nf Architects, Institution of Engineers Municipal Association, Real Estate Institute and Building Societies' Association. The Commissioner of WnrW Mr James Fletcher, addressed the conference on the supply problem and lated matters. The report defines the objective of an adequate housing programme as the production of more houses at a cost which people can pay, and on a sound financial basis. Reviewing causes of the present situation, it states that before tho depression the housing needs of the community were being adequately met by private enterprise with the benefit of financial service from the State Advances Department. The present shortage originated in the depression, but the recovery years 1933-36 showed a steady increase in houses erected by private enterprise. State Intervention The advent of a new Government and the introduction of the State housing programme, together with restrictive legislation, however, discouraged pri-;-te enterprise to an extent which hag « Vot been made up by State house-build-ing. Thus, prior to the war, the combined efforts of State housing and private enterprise were not producing houses equivalent in number to those produced bv private enterprise alone prior to the depression. _ The war affected both classes of building, and there is a tendency to blame it for most of the present difficulties. Impediments other than the war must be pointed out with a view to their removal.

Dealing with finance, the report states that the maximum loan of £1250 from the State Advances Corporation leaves a civilian borrower under tha most favourable conditions with £550 to find if he wishes to build a normal house. The Emergency Finance Regulations have put a stranglehold on the operations of building societies and other investment companies normally active in financing houses. They, are not allowed to issue any more investment shares or take more deposits without the Minister's consent, which is said to be for the most part refused. The freer use of private investments would not only assist building, but would also play some part in checking inflation. Increase in Costs After examining State housing policy at length, the report presents a comparison of housing costs in 1939 and 1944, prepared by a quantity surveyor and based on a specific house. The surveyor estimates the total cost as £1399 12s in 1939 and £1796. in 1944, or 28s 3d and 36s 3d a superficial foot respectively. Of the total increase of £396 Bs, material is shown as accounting for £126 8s 4d, increased sales tax for £52 12s, labour for £154 7s, increased extra payments to workmen (travel time, fares, holidavs and cost-of-living bonus) for £46 6s, and contractor's additional profit for £l6 Js. The average decrease in output of work per man is estimated at 5_ per cent, whereas tbe average wage increase is placed at approximately 25 per cent. . The report quotes a recent estimate that timber supplies are 1,0(X),0W teet a week short of the requirements of certain determined housing ancr K en " eral construction programmes. It refers to possibilities of further output through the moving of idle mills, use or treated pinus insignis, kiln diymg and. dipping of soft timber, and mentions a shortage of saws, wire ropes and milling equipment. It also surveys the availability of builders' supplies other than timber.

Many Recommendations The conference makes the following recommendations: — (1) That the Government extend to other suitable local bodies the facilities for private house-building that are pro* vided for under the present Wellington City Act. „• (2) That the Government remove ali restrictions placed upon building societies in regard to the acceptance ot shares and deposits. - (3) State housing policy should be immediately revised to cater primarily for the lower income groups who are unable to take care of themselves. Any provision by the State for other than the lower income groups should not b9 attempted until all the latter are satisfactorily housed. (Note; Proposed slum clearanc9 schemes will virtually empty this section of the community on to the street unless their problem is solved for them.) (4) The financing of State housing should be placed on a sound financial basis comparable with t any other methods of financing housing, and the deficit unavoidable in housing the lower income groups should be made up by the taxpayer. (5) To serve the needs of the lower income groups and to avoid undue burdens on the taxpayer, State housing should provide a more modest house than is at present being built. Basis of Rentals (8) Rentali r, M! all State houses, for tenants of nd*;;iial income should ,09 placed on an economically sound basis. (7) To encourage citizens to have * financial stake in the country, Stat# houses should be for sale as well as for rontjil (8) The building industry should revert to a normal working week at award (9) Sales tax on building materia]! should be removed. (10) Existing retrospective regulations governing the employment of mora apprentices should be modified and encouragement should be given to tn# employment of apprentices in the building trade. , , (11) Consideration should be given to the possibility of erecting houses m materials other than timber. (12) As long as import licensing continues, present licences for imported materials for building should be double the value of the goods imported in 1938. (13) State housing should be constructed to comply with standard bylaws in all respects. - (14) The manpower regulations should be systematically administered so as to give every facility to small builders to resume their occupations and so as to give every opportunity to new men to become private builders. Further, these men should be given facilities for obtaining a fair share of existing materials. » PERSONAL ITEMS

Mr W. E. Donovan, assistant account" ant-general of Fiji, left for Australia by air yesterday. Mr K. Pullar, who has been telegraph engineer in the Palmerston -\ 01 triet for the past six years, has been promoted to a similar position in " el " ington. , Mr C. G. White, a director of lasman Empire Airways, returned by ' n. ing-boat on Saturday from a business visit to Sydney. He left for Wellington, last night.