THE HOUSING PROBLEM.

Otago Witness, Issue 3662, 20 May 1924, Page 27

THE HOUSING PROBLEM.

DEPUTATION TO MR MASSEY. WELLINGTON, May 16. In the course of the discussion by the Labour members of parliament who waited 4 on Mr Massey yesterday on the question of State advances, in view of the housing shortage and the expiry of the moratorium. Mr A. 1,. Monteith said that the Labour members were receiving many inquiries in regard to State advances and the mora toriuni. Mr Massey: “So am I.” Mr Monteith said that any information which Mr Massey might be able to give would ease the minds of their constituents and those of the people of the rest of New Zealand. The State Advances Office was not lending money at such a. rate to-day as it had been in the past, and communications to the department were answered in a stereotyped manner. The deputation realised that he (Mr Massey) wanted to build more houses. So far as the moratorium was concerned, the position was that loan companies were charging very high rates of interest because of the excessive demand for money, and it was suggested that the Prime Minister might be able to devise some means by which the moratorium could be lifted gradually. Never before, possibly, had there been such a set of circumstances in the dominion—the moratorium expiring soon and a heavy demand for houses. Although Mr Massey had put more money into the State Advances Office, the demand had not been relieved to any great extent. Even when really good security was lining offered as much as 8 and 9 per cent, interest was being asked, but some people were in the position of not being able to finance at all. It was asked, therefore, that the moratorium be lifted by degrees to ease the position, and that more money be put into the State Advances Department to help the housing position, which was becoming more acute by reason of immigration. Mr R. M‘Keen said that the position to-day was more serious than it had ever been. People who had put in applications for leans last August were being told that they would have to wait their turn. Thus although the Act had been lauded as a solution of the housing problem, it, was not satisfying the demand. Mr M‘Keen suggested that sections on a block of land which the State Advances Department owned at Miramar migh be made available to applicants under the 95 per cent, scheme, and this would obviate the necessity of securing options on privately-owned sections. This would suit people who cared to go out and live at Miramar, and would avoid the department’s having to pay private people for sections. “Owing to the acute housing shortage we have the unscrupulous landlord still,” remarked Mr M‘Keen, “in spite of your rent restriction legislation; and he is trying to get the people to consent to excessive capital values being placed on their properties.” Mr M‘Keen mentioned the case of a man who wanted £I4OO for two houses on which the Government valuation was £540. Three years ago the rent charged for these two houses was 15s a week, but now the landlord was getting tenants to agree to £2 2s These people had no alternative but to pay or else go into rooms at 255, 30s, or £2 a week. A compliment to the administration of the State Advances Department was paid by Mr P. Fraser, who said he thought that the. department had thrown its heart and soul into the new scheme, which was undoubtedly a good one. and had been administered very well. In spite of what had been done, however, the demand for houses was so acute that cases of the type quoted *iy Mr MTKeen were common. Overcrowding in the dominion involved about 160,000 persons. He knew that the demand tor houses could not be overtaken in a year or a series of years, but they were particularly anxious that the scheme should go forward as rapidly as W as humanly possible, and a greater effort be made to overcome the housing shortage. “Tf we could once house the people of our dominion,” said Mr Fraser, “then I am quite Bure we could keep abreast of the growing population, which is increasing by immigration.” Mr Massey, in replying to the deputation said he understood the position. In fact, he did not think that outside of Mr Waddell (the State Advance Superintendent) there was anyone who understood the position better than himself. He then quoted the figures of the advances made, and made a statement with reference to preventing the creation of a boom (which was published yesterday). In reply to Mr Fraser, he said that at the moment he could not say how much of the sum of £6,639,241 advanced was for

housing. The question of security had to be considered. ‘ What had been done already by the department must have done a lot of good, and he wa s glad to hear what Mr Fraser had said on the point, but the same rate of advances could not be kept up this year. There would probably be £3,000,000 made available for State advances, and that was as far as they could go. That had never been done before. No one had ever dreamt, of lending between £6,01X5,000 and £7.000.000 in one year. Mr Monteith: Of course, the prices of land and building have never been at this point before. Mr Massey: The lending of so much money put up the price of building and the price of land in the centres. Mr Fraser: I think, in fairness to the department., it should be said that it took every step to prevent that. Several times contracts have been sent back to get a better price. They did what they could to prevent it. Mr Massey: There it is. The thing is not going to stop, but I am going to tickle up your ears before we go any" further. tie are going to go on lending. The capital of the department is now about £21,000.000. That has not been done in the last two or three years A great deal of nonsense has been talked about the department. I saw the other day that a politician had said that we borrowed £2,000.000 or £3.000.000 and did not repay it. T hat was absolute nonsense. The sum was piled up when people were not quite certain who was going to win the war. There was a period like that when building practically stopped, and the department was getting no applications for money. They were not going to keep the money idle, and it was temporarily invested, nnd properly so. but ir, had all been used up long ago. “We are going to do our best,” continued Mr Massey, “but it is not misleading you when I tell you we cannot do the impossible. It is my duty to see that the credit of the country is kept right. If it were not, I am quite certain that, we would not have got a loan oh such favourable terms as the other day. I hope that loans will he available at no distant date, but it is not yet. and we are not going to buy houses already erected under the 95 per cent, scheme.” Mr Fraser: We cordially endorse that. Mr Massey mentioned that sometimes there were urgent cases where houses had to be bought, and in this connection he spoke of a case where a man with 31 children was jo be turned out and the house sold. “I could not- imagine that such a man was to be allowed to go out.” said Mr Massey, “and we authorised the purchase of that house. The amount involved was £600.” Mr Fraser: That is all right. Any decent man would support that. Mr M'Keen mentioned a similar case to this in Wellington, and the State Advances Superintendent, who was present at the interview, said he thought this could be fixed lip. Speaking of the moratorium, Mr Massey stated that the position was nothing like it was six or nine months ago. There would be practically no difficulty in the case of leans under £3560, because the department had taken up most of them. “I am not going to talk definitely, because this is « matter that Cabinet has to consider prior to the meeting of Parliament, and I don’t want to make things more difficult than they are; but I think the public will find that- the moratorium position will not be so serious as is imagined.” In the case of big loans of £20,000 and upwards, there might be a certain amount of difficulty, but Mr Massey said be thought that these would be adjusted before the end of the moratorium. With regard to the Miramar section, the Slate Advances Superintendent said that the point mentioned by Mr M’Keen could be considered when the land was drained and roaded. Mr Waddell said that the present policy being followed by the department would have a very steadying effect on boom prices. The department, had never ceased to pay out or to consider apnlieaticns for loans. In conclusion, Mr Massey remarked that during April last £433.555 had been paid over to 451 borrowers by the. State Advances Department. EXTENSION OF MORATORIUM. PALMERSTON NORTH, May 15. In reply to a question at a political meeting to-night. Mr Masters, member for Stratford, said that in view of the financial condition of the country it would be suicidal to lift the moratorium. He had hoped that a sufficiently large amount of money would be placed with the State Advances Department to meet the position, but as this would not be possible, in view of tna many applications for advances, it would be better to extend the moratorium.