STATE ADVANCES BILL.

Poverty Bay Herald, Volume XLIX, Issue 16174, 10 July 1923, Page 7

STATE ADVANCES BILL.

THE HOUSE SHORTAGE. INCREASED BORROWING POWERS. (I J or Press Association.! WELLINGTON, last night. Mr. Massey moved the second reading of the State Advances Amendment Bill, his explanation of clauses being on the lines of his previous statements. As showing the business now being done by the Advance Department, he - quoted statistics showing that Hast; year the'Advances • under the' advances to settlors*: section, numbered 1580,' and the amount' advanced totalled '£827,750. This was' good'.business, but'when the Bill comes into force the business will be vastly greater. The annual repayments amounted to about ono million pounds, and that was where some of the money was coming from. It was simply going round. Loans not exceeding £SOO num--14,291; not exceeding £IOOO, 2647; not exceeding £2OOO, 1057; not exceeding £3OOO, 88. The amount loaned on freehold security amounted to , £11,136, leasehold £6734. The combined security was £2063. He was confident this record would be easily beaten when this measure becomes effective, and ho felt sure it would go a great way to solve the housing difficulty. He did not feel justified in saying that the supply of money would last for ever, but he could see his way clear for the next year or so. In view of the moratorium falling due, he proposed to ask Parliament for further borrowing authority in connection with this department, but ho did not anticipate any further difficulty in raising the money required.

Mr. Wilford said he wished he could be as optimistic as the Premier as to the success of his proposal. He did not think the proposals would anything like meet the demands from one provincial district only. It would take £25,000,000 to meet all the demands from tho farming comumnity, and the position, as he saw it, was one of the strongest arguments in favor of agricultural banks. As to the housing problem, he considered ono of the greatest difficulties was the high cost of building material. Under existing prices good four-romed houses were costing £I2OO, but he quoted a case from his own district where a good four-roomed house was built for £SOO, and ho wanted to know how, if this could be done in one case, it could not be done in another. Tlie Premier: We can build a fiveroomed house for £7OO.

Mr. Wilford questioned this, and quoted a case in support of his incredulity. Ho predicted that when the Bill became law the prices of material would go up still further, and would only make it more difficult to get houses built. There was no doubt the people were not getting a square deal from those who supplied the material. He concluded by again stressing his doubt that this Bill would anything like meet the position when the moratorium falls due. He welcomed the Bill so far as it went, but it did not go far enough.

Mr. Ransom regretted that the Bill proposed to give preference to men who at present had no mortgage on their properties. He thought some consideration should bo given to men who had to pay high rates of interest, during the period of the slump. He feared many of those who could raise cheap money under tho Bill would do so, and lend it out again to the genuine producer at a higher rate of interest.

Mr. Ilockly commended the Bill, and congratulated the Government on its introduction. It was ridiculous to suggest that cheap money would be farmed out at a- higher rate of interest, nor would the material increase in price. Competition would keep the prices normal. What ho feared wag there would boa, shortage of skilled labor to build all tho houses required, but that difficulty could be got over by immigration. There were hundreds of artisans in tho Old Country who would be glad to come to steady work in the Dominion. He suggested that tho scope of the Bill should be widened so far as leasehold security was concerned, and that discretion should bo given to tho superintendent and the board to lend on leasehold wherever they are satisfied tho security is satisfactory.

Mr. McKeen thought the Bill might be of some sendee to fanners, but he was not at all optimistic as to its benefit to the homeless of tho Dominion. The Bill was simply political window-dress-ing. There was ample legislation now. but it was the valuation which was the difficulty, and in this Bill the words “as approved by the Board” would again oar the way. Many of those who purchased houses under the previous Housing Act had been grossly deceivted, and until there was either a reduction in the capital cost of building or an extension of timo payments made, justice would not bo done to these people. The Hon. G. J. Anderson denied that anyone had been decoived. Those people were told that owing to fluctuations in tho cost of material tho price of buildings could not bo estimated, ana if they cared to take them on those conditions they could do so, and they took them on those conditions, and the Department was not to blame. Building conditions did not improve, and as lie saw the cost of houses was going to involve payment of rent too high for the means of the occupants, ho advised that building should bo stopped, and it was stopped. Ho did not consider the occupants of tho houses referred to by Mr. McKeen had obtained bad value. Tho only fault found with the houses was tho siinilariy in design, and he was of opinion that so long as they built houses of ono design in ono locality and called them “workers dwellings,” they were going to have dissatisfaction. Tho great tiling was to satisfy women with houses in which they hud to live, and no woman ever will be satisfied if she finds her neighbor has exactly the same kind of house as she has. In the cities, workers had to get into the city by tho early hours of the.rinorning. The only solution lie could devise was large flats, with playgrounds built in tho city itself. That, however, was not tho business of tho Government. It was a matter for the city council or private enterprise. Tho Hon. A. T. Ngat-a suggested to tho Government that funds of the Native Trust Oflice should be supplemented by State funds for loans to Maoris. The source from which this money should come was, he thought, tho Advances Department. If this were not done the question might bo asked, “What has the Government done for the Maoris?” Mr. Williams supported the Hon. A. T. Ngata’s appeal for assistance to the Maoris.

Mr. Barry contended that the Bill should liavo contained some protection against speculation. Ono way to do this was for tho Government to open up lands of their own for building purposes, therobv regulating tho price of lands near cities. Mr. T. W. Rhodes advocated tho restriction of prices of land and building material. Tho discussion was carried on by the Tlon. D. Buddo, Sir J. Luko, and Messrs. Langston and Hawken. An adjournment was then moved by: Mr Porcllo, mid tho House rose at 11.30 until 2.30 to-morrow.