CITY HOUSE RENTS

Otago Daily Times, Issue 21688, 5 July 1932, Page 8

CITY HOUSE RENTS

HIGH LEVEL MAINTAINED 78 PER CENT. ABOVE PRE-WAR LEVEL. (Special to Daily Times.) WELLINGTON, July 4. Answering a suggestion that relief workers should receive a subsidy of 10s a week to enable them to meet their rent payments the Acting-Minister of Employment (Mr A. Hamilton) commented to-day on the failure of city house rents to drop in proportion to other items included in the cost of living calculation. Mr Hamilton was replying to a deputation from the Wellington Relief Workers and Property Owners’ Association. He said that while house rents were still on an average 78 per cent, above pre-war level in the four main centres, rents in Wellington were about” 10 per cent, above the average, yet other items were falling in price. Mr Hamilton said he did not think the Consolidated Fund could be drawn upon to assist, as the Government had already budgeted for a deficit of £2,000,000 this financial year. The Government could consider increasing the wages tax as had been suggested, but it was questionable whether the Government had a liability to find rent over and above the relief already given. “ I would like to tell people representing the landlords that I do not think rent has been paid in the country for one, if not two years,” the Minister said. “ I fancy landlords in the country are not getting one per cent, for their money, and if you discuss it with the Minister of Lands you will find he is millions of pounds behind in his rent. The State Advances also is millions behind in its rent.” He had been interested to- hear Mr Will Appleton say that the Government should not build houses all over the country while there were houses empty in the cities. In its plan for placing married men on country allotments the Government had aimed to get men out of the towns so that they could live cheaper. Mr Appleton; The question is whether you are going to do it that way. Mr R. Semple, M.P.: The only thing you will do is to put them somewhere where no one can see them starve. Mr Hamilton said the exporter was getting 20 per cent, less for his produce to-day than he was before the war. The British wholesale price was -14 per cent, below pre-war level, yet rent in the cities of New Zealand had been maintained at a level nearly 80 per cent, above the 1914 basis. This was one of New Zealand’s greatest problems. In reply to the Minister's questions concerning complaints made, members of the deputation said the Government departments controlling houses were turning people out of their homes and leaving the houses empty. Even when a man was prepared to pay 10s or 12s a week he was turned out if this was not the whole of his rent payment. Mr Semple: The trouble is that the landlord cannot meet his liabilities with 10s a week. ‘ . The Minister: This is the time when moneyed people drawing interest must ease down a bit. He promised to look into the matters placed before him.