STATE HOUSE RENTALS

Otago Daily Times, Issue 27358, 6 April 1950, Page 8

STATE HOUSE RENTALS

Criticism Of Policy OLRC STATEMENT “Mr J. G. Henderson’s contention that the Government’s decision to raise the rent on new tenancies of State rental houses is in the interest of all will not stand investigation," said the president of the Otago Labour Representation Committee, Mr R. A. Hill, in a statement given to the Daily Times last night. Mr Hill was referring to an interview with Mr Henderson, published yesterday. “His statement that State tenants are a ‘privileged group ’ must be causing concern amongst his party’s parliamentary representatives. Mr Henderson says that ‘ to prolong the position as it has existed since 1937 will not make it a just one, to carry it on indefinitely simply means that this privileged class will continue to enjoy cheap rentals at the expense of the general taxpayer.’ What Mr Henderson seems to be concerned with is not legislation for the good of all, but that the State tenants should pay a rent lower than the tenants of private landlords. Perhaps unintentionally Mr Henderson is defending not the cause of justice, but the threatened position of private landlordism. Is Mr' Henderson unaware of the fact,” the statement asks, “ that the Government of England has for many years ben subsidising municipal housing by many mililons of pounds yearly? " The statement continues: “Mr Henderson puts up a plea for the returned servicemen who built homes on borrowed money, but he does not say how these men are going to benefit by raising the rentals on those of their fellow returned men who propose to occupy State houses. The change has not been made in the interests of the lower wage group; if it were so, the rentals would not have been increased. The real reason for making the change is to eliminate as far as it is possible State competition with private capital investment. “An ever-increasing number of lowrental State houses will have the effect of reducing the rents of privatelyowned rental houses, as well as reducing money on first mortgages,” the statement concludes. “Mr Nash was right when he said the Government’s action was true to form. Conservatism has always been opposed to State competition with private capital.”