WORKERS' DWELLINGS.

Otago Witness, Volume 23, Issue 2684, 23 August 1905, Page 9

WORKERS' DWELLINGS.

A NEW GOVERNMENT PROPOSAL.

PROVISION TO GRANT THE FREEHOLD.

DISCUSSION IN THE HOUSE.

(Fjiom Otts Own Correspondent.) .-" - WELLINGTON, August 18.

The Workers' Dwellings Bill, which bears upon it the name of the Premier, was introduced in the House of Representatives to-day by Governor's Message. The definition of " worker " is " any adult person employed for hire or reward in manual or other work." The term "workers', dwellings" is to include land, not exceeding one acre, surrounding any dwelling, and all outbuildings and sanitary and drainage arrangements necessary for such dwelling. Crown land or land acquired under the Land for Settlements Act may be taken for the purpose of establishing such dwellings, and on land so set apart the Minister of Labour may cause to be erected buildings suitable for workers' dwellings, or may convert any buildings into workers' dwellings, and may from time to time alter, enlarge, repair, and improve such dwellings, provided that the cost of erection or construction shall not in any one case exceed £300.

Every worker's dwelling shall be disposed of by the Land Board by way of lease for a period of 50 years, with the right of renewal. Every application for a worker's dwelling shall be in such form, and shall contain such particulars as are prescribed by regulations, including in every case a statement that he desires, or does not desire, to acquire the freehold of his worker's dwelling, and if he does so desire a further statement of the mode in which be", desires to exercise such right. Each applicant shall satisfy the Land Board that he is — (a) a worker as herein defined, and '(b) landless (meaning thereby that at the date of his application he is not either by himself , or jointly with any other person, the owner in fee isimple, or the tenant or occupier under a lease' for a term whereof not less than" two years are unexpired of any land in New Zealand exceeding onequarter of an acre in the oase of urban or* suburban land, or exceeding 50 acres in aTea, of a value of £300, in the case of rural land).

With respect to every lease under the act, the following provisions shall "apply : — (a)- The payments -ttnder the lease shall be payable monthly in advance, and shall be a-t the rate of 5 per cent, per annum on the capital value of the worker's dwelling (being 4- per cent, for rent and 1 per cent. for depreciation), in addition to the cost of insuring the dwelling from fire at its full insurable value, provided that where the lessee desires' to acquire the freehold, andso states in his application, the rent shall be at such rate as is hereinafter mentioned; (b) such capital value shall be fixed by the Minister, and shall cover the oapital value of the land, the cost (if any) of its acquisition, the oost of survey, roading, subdivision, and other works and operations done on the land (including the cost of erection of the dwelling), the proper proportion of the value of so much of the land as is absorbed by roads or street 3, and the estimated cost of administration; (c) the lease shall contain a provision that the lessee* may "at any time before the expiration ,of the .term have a new lease f or a further term of 50 years, containing the same covenants and provisions (including this present provision), at a rent to be fixed by valuation made by three independent persons, one to be appointed by the Minister, one by the lessee, and the third by the two persons so appointed ; (d) the lease- shall also contain snch powers, condifiions, and covenants., as," subject to regulations, the Minister thinks fit to prescribe, including in every oase a covenant to reside in tho worker's dwelling, and also a covenant to maintain and keep all buildings and erections in good order and condition to the satisfaction of the Land Board.

The bill stipulates the following modes of acquiring the freehold: —

Mode A. — By payment in cash of the capital value thereof at any time not less than 25 years from the date of his lease, in which case the payments under the lease shall be at the rate of 6 per cent, per annum on the capital value of the worker's dwelling (being 5 per cent, for rent and 1 per cent. fo # r depreciation, in addition to the cost of insuring the dwelling from fire at its full insurable value, or

Mode B. — By payment of -the capital value by monthly payments extending (at the option of the lessee) over a period of 32 years, or 41 year.", in which case the payments under the lease shall be at the rate .of 7 per cent, per annum on the capital value (including 6 per cent, for rent and 1 per cent, for depreciation) in addition to the cost of insurance as aforesaid, or Mode C. — By an insurance on his life as provided by section 10 of the bill. The monthly payments under Mode B shall be in addition to rent reserved by the lease, and shall be .payable as rent. The amount of such monthly payments shall be computed as follows: — (a) If the period is 32 years, then at the rate of 2 per cent, per annum on tho capital value of the worker's dwelling, fixed as aforesaid ; or (b) if 41 years, then ai the rate of 1£ per cent, per annum. Clause 10, regarding insurapee, is as follows: — If the lessee desires to adopt Mode C the following provisions shall apply : — (a) He shall insure his life with the Government Insurance Commissioners for the amount of the capital value of the worker's dwelling, (b) Such' insurance shall be for any term prescribed for Mode A or B, at the end of which he desires to acquire the freehold,, and shall be at such yearly premium as may be prescribed by the Government Insurance Commissioner so as to produce at the expiration of such term, or on his death before such expiry, the amount insured. (c) The premium so prescribed shall be regularly paid by the lessee and the policy deposited with the Land Board, (d) On the maturing of the policy the policy moneys shall be paid to the board.

Clause 12 provides that the residence of the owner is necessary, failing which the Minister may direct that the certificate of title be cancelled.

Disposition of lease or freehold is not to be valid without the consent of the Land Board. The management of workers' dwellings may be vested in local authorities.

A remarkable fea-ture of the discussion which followed the introduction of the bill was the amusing " Yes-no " attitude of the Premier in regard to the freehold question. As will be seen, the bill makes distinct' provision for workers having the option of acquiring the freehold of the lands purchased for the purpose of the scheme under the Land for Settlements Act as well as by the use of ordinary Crown lands. So many members expressed pleasant surprise at this change of front on the part of the Government that the Premier appeared to be desirous of disclaiming what was regarded by the speakers as the best feature of the bill.

Mr Massey having asked for some information regarding the bill. Mr Seddon said that the option of the freehold was provided for.

Mr Massey expressed pleasure with the proposal of the Government to give the workers an opportunity of acquiring the freehold of 'their homes. — ("Hear, hear.") He was glad to hear that the Premier was coming round to the^ Opposition's way of thinking on this master, and he thought that the Opposition could fairly claim that this was the result of its criticisms both in the House and on the platform. — (Laughter from the Premier.) Mr Hogg, in referring to the remarks of Mr Massoy regarding the freehold, expressed $ hope that no trafficking would be permitted in connection with the workmen's homes.

Sir William Russell said that unless some provision was made for transferring properties under necessary circumstances they would be tying the men to the properties for 41 years. Mr Bollard expressed satisfaction with the bill, and said he was quite certain that until a measure was passed giving the workers the right to acquire the freehold of the land no scheme would be a success. He was glad that the Premier had now now come round to his way of thinking by giving greater assistance in the erection of houses and the right to acquire the freehold.

The Premier thanked Mr Bollard, and said be hoped that under the- scheme he would be able to rapidly settle- all the workmen's section- at Auckland.

Mr Taylor congratulated Mr Bollard on at last endorsing a proposal which could fairly be termed a socialistic proposal. He had never been more astounded than be was at hearing suoh an expression of approval coming from tihe member for Eden, wiho had always been looked upon as an absolute foe to anything in the way of a (socialistic* expierimieont. The proposal was such a good thing, and coming as it did on the eve of a general election, the whole of the 80 members of the House would "be out after each other" to claim th& credit for originating it. As a matter of fact, the New Liberal party— (loud laughter) —had been in advance of any other section in advocating the proposal. Ac far back as 1897 he had seconded a proposal in this direction, whidh was moved by Mr Wason, one of the Canterbury members. Mr Bollard said that if Mr Taylor turned up Hansard he would find that during the nine years he had been in Parliament he (Mr Bollard) had consistently advocated the establishment of workmen's homes. The statement made was incorrect, and characteristic of the honourable member. — (Laughter.) Mr Taylor repeated that he had never before heard of a proposal of the kind that did not have Mr Bollard as on© of its most bitter opponents.

Mr Hardy said that Mr Taylor was very rarely present at meetin.ge of the Labour Bills Committee, but there was no better worker on _ that committee than Mr Bollard. The Premier had thanked both Mr Bollard and himself (Mr Hardy) for the work they had done on that committee.

Mir Fowlds contended that the surest way to get cheaper workmen's homes was not In the direction proposed, but by applying the principles of natural taxation. An Hon. Member: Single tax.

Mr Fowlds : Yes, th© single tax if you like. To carry out the Government's scheme they would have to buy land at fictitious t>riees, and they would thus increase competition and further boom the prices of JUnd. Wihat wae needed was $

substantial increase in the land tax. That would have done far more to solve tho problem than tJie present pioposal. Mr Alison complimented the Premier on his conversion to tho freehold. It showed that the Land Commission after all had had a beneficial influence. Many people said the Land Commission was a waste of money, but if it had converted the Premier, as it evidently had done, it ho-d dono good work. He was also glad to find that the leader of the New Liberal party (Mr Taylor), who had been strongly denouncing the freehold from the platform.- was also supporting the granting- of freehold. Sir Joseph Ward: Why don't you wait till yo\i get the- bill circulated, so that you will know what is in it? Mr Alison: But the Premier said he would grant the freehold. _ Mr Seddon said that the bill provided that the dwellings should be leased for 50 years, and read the section making Uus provision. Mr Alison said that as the- bill had not yet been circulated, he had had to rely on the statement made by the Premier— viz., that the option of the freehold would be grantad to the workers. Mr Flatman said the Leader of the Opposition was now claiming to be the originator of this scheme. , , Mr Maesey: No; I only come second, to Mr Bollard. . Mr Seddon said that members -were rather hasty in claiming credit for proposals which they had not yet seen. Probably they would take exception to some of the provisions when they saw them. This terminated fche discussion.