STATE ADVANCES.

Otago Witness, Issue 3961, 11 February 1930, Page 62

STATE ADVANCES.

THE POSITION IN AUCKLAND. AUCKLAND, February 3. Owing to the number of empty houses in Auckland, no further Government loans for the building of homes will be made till the situation improves. This announcement is contained in a communication from the State Advances Department. The opinion is expressed locally that the public should have been given warning. February 4. The statement made yesterday that, owing to the number of empty houses in Auckland, no further Government loans for the building of houses here would be made until the situation had improved was published in consequence of the following letter received by Auckland solicitors (for two clients) from the State Deputy Superintendent:— “ With reference to the applications submitted on behalf of the above-named clients for loans, to erect dwellings, I have to inform you the matter was again placed before members of the board of this office, who have resolved to postpone consideration, of the applications for the present. 1 would like t< explain that the housing position in Auckland is not at present considered satisfactory, inasmuch as there are a good mr.ny empty houses to be found about the city. In the circumstances, the members of the bou~d do not consider it advisable or expedient to grant any further loans for the building of more dwelling-houses just now in Auckland. As soon as the situation improves and it is found that there are no unoccupied buildings in the city, and that further dwelling-houses are required, your clients may renew their applications, when the matter will receive further consideration.

A DEPARTMENTAL EXPLANATION

WELLINGTON, February 3. A denial of a published suggestion that State advances loans are to be curtailed was issued by the Prime Minister (Sir Joseph Ward) to-night. Sir Joseph Ward authorised the following statement for publication ;— “ The declaration in a Press Associa tion message from Auckland that ow'og to the number of empty houses in Auckland no further Government loans for the building of homes will be made until the situation improves is not a correct statement of the position. It is well known that there are a very large number of empty houses in Auckland and suburbs, and the Advances Department has, in addition, had a number of its securities abandoned, chiefly through the difficulties of transport and unemployment. These securities the department is endeavouring to dispose of, and to that end it has been considered expedient to bring these houses winch comprise recently erected dwellings, before the notice of in tending applicants desirous of erecting new homes. Should, however, it not be possible for the department to satisfy the requirements of an applicant by the sale of one of the department’s available securities his application would be dealt with on its merits, when the housing position generally would be taken into consideration, in conjunction with the circumstances relative to the applicant and the proffered security. lit any case where the circumstances justify the Advances Department in entertaining an application, thr matter would be dealt with in the usual manner, and as soon as it was possible to do so. The statement made in the press, that such loans are to eease, is ridiculous. A similar decision is reported to have been made in respec’ to Christchurch some days ago. In reply to an application for a loan, the State Advances Department advised that no more loans would be made in Christchurch until the position in regard to empty dwelling-houses had improved.

BUILDING LOAN QUESTION.

LAND AGENT’S VIEWS. AUCKLAND. February 3. Commenting to-night on the position, a leading Auckland land agent. Mr C. F. Bennett, described it as a very drastic step. “It is to be hoped that the Government’s edict does not apply to those who have already made applications for loans,” he said. “If these are stopped many people will be left in precarious positions. I • could understand a slowing up in the granting of loans, but this sudden stoppage is. in my opinion, altogether too drastic. The department's action is not calculated to help to restore public confidence in the general living conditions and this con fidencc is urgently needed. The recent raising of the rate of interest on Government bonds is diverting money generally used for legitimate business purposes to other channels of finance, and this latest move is bound also to have an effect on private trade. I prefer to think that the Government's intention is not the definite cessation of the advances but rather a gradual easing up.” Mr Bennett also questioned the state ment that there was a large number of unoccupied houses in the city. Certainly there were many houses to' let and for sale, but the fact had been very largely overlooked that many of them were in the outer suburbs beyond the third tram sections. People would take such houses only at low rentails, as they contended that they had to add heavy tram fares to their weekly rented

“ There is another point which has been generally overlooked,” Mr Bennett continued. “ I should say that quite 50 per cent, of the houses unoccupied in Auckland are almost incapable of being let. Either they are badly situated below street levels or else they are old places without modern conveniences that people d aand to-day. There is quite a good demand for well-built houses with modern appointments within easy distance of the city, but older structures for the most part are left severely alone.”

CONDITIONS IN WELLINGTON. WELLINGTON, February 4. To-day the superintendent of the State Advances Office (Mr W. Waddell) said that the housing position in Wellington does not justify similar action by the department in the capital city to what has been taken in Auckland, where, he said, it was estimated about 1400 houses were vacant. The decision affected Auckland only. Replying to a further question, the superintendent said that the announcement some days ago that no more loans would be made in Christchurch until the position in regard to empty dwellings had improved was incorrect. There had been a misunderstanding, and the decision in respect to Auckland did not apply to Christchurch. POSITION IN DUNEDIN. Inquiries made on Tuesday from the leading land agents in Dunedin indicate that the local property market is particularly solid, and that the supply of the type of house usually built with State loans (four, five, or six-roomed bungalows) by no means exceeds the demand. Houses of this type continue to let very readily, and, with the exception of very large or very old houses, residences to let in Dunedin to-day are comparatively few.