HOUSING NEEDS

Otago Daily Times, Issue 26274, 4 October 1946, Page 4

HOUSING NEEDS

| IMMEDIATE PROBLEM THE SHORTAGE ESTIMATED STATE ADVANCES REPORT (From Our Parliamentary Reporter) WELLINGTON. Oct. 3. " It is difficult to give an accurate j estimate of the number of units that i would overcome the immediate hous- ' ing problem, but it is felt that if 25.000 new tenancies could be provided within, say, the next two to three years, the needs of the most pressing cases could be reasonably met states the report of the State Advances Corporation for the year ended March 31. 1946. which was presented in the House j of Representatives to-day. i "In saying this, we have taken into ! account the fact that there is considerj able activitv in building for private owners. Homes for Ex-servicemen '■ We expect that in future there will | be steady progress. In the erection of | houses for ex-servicemen and others j who do not desire to be accommodated i in State rental houses and who have a | preference for homes of their own," i the report stales. Up to March 31 last, j the corporation had taken over from the Construction Department 20.267 housing units and at the same date there were 47,088 applications for tenancies unsatisfied. That included applications by ex-servicemen whose needs would be met from the quota of 50 per cent, set aside for allocation to ex-servicemen. It was apparent from a recent survey that a number of those seeking State tenancies were already reasonably housed, so that it could not be assumed that 47,088 new units were needed to overcome the shortage. “A stage has been reached when, due to increased construction costs, rentals fixed under the new State housing section are becoming insufficient to meet outgoings, but it is hoped that the abolition of the sales tax on building materials will be reflected in lower construction costs in future." the report adds. The year’s revenue in respect of new Slate rental houses reached the substantial figure of £1.293,157, which showed an increase of £169,970 over the total revenue for 1944-45. Loss on Year's Working On the expenditure side, provision had been made for the actual cost of such items as interest, rates and management, and the amount set aside for depreciation, insurance, maintenance and losses had been calculated on a basis that was considered to be a proper charge having regard to the estimated utility and life of the assets and average costs over a term. This was especially significant when dealing with an item such as maintenance, where the major item of expenditure was painting, which recurred on an average every five years, and maintenance expenditure was proportionately heavier as the buildings became older. The basis of assessing these charges had been continuously under review, and it was considered that the provision now being made was the nvoper one.

The revenue statement for the year shows that after paying interest, rates

and cost of mangement, and making appropriate provision for depreciation, maintenance, insurance and contingencies. outgoings "in this section exceeded revenue by £19,292. The year's transactions in other subdivisions of the housing revenue accounts resulted in a surplus of £7693. leaving a net j loss of £11.599. At March 31, 1945. | there was a credit of £64,821 in the ] profit and loss account, representing j accumulated profit to that. date, and j after deducting the net deficiency for j the past year and making a few minor j adjustments, there remained a credit balance of £52,786 to be carried for- 1 ward