THE BUILDING SUBSIDY

Poverty Bay Herald, Volume LIX, Issue 17955, 6 December 1932, Page 8

THE BUILDING SUBSIDY

SERIOUS ERROR ALLEGED SECURITIES WEAKENED (P,sv Press Association.) WANGANUI. lasi night. A representative meeting <d Wanganui timber and hardware- merchants to-day passed a resolution describing the. Unemployment Board's No.. 10 building subsidy scheme as a serious error as applied to the erection of new houses. The. resolution slates: “That while the. No. 10 subsidy scheme, as applied to renovations and certain classes of buildings, is of assistance, we consider the scheme as at present applied to the erection of new houses, is a serious error. Any superficial stimulation of building, notwithstanding its temporary benefit to the building trade, is far outweighed by the further intensified depreciation of the values of existing properties to the extent of the subsidies. This serious defect lias markedly further discounted equities in house properties of both private and Government buildings, and also section values. This has unpopulurised properties in the minds of lenders, so causing capital to be withheld from the assistance, of buildings, and to be directed to* the restrictions of deposits and Government securities. to menacing trade, and adding to unemployment.” As a constructive proposal, it. is urged that it scheme to permit of assistance to build through a redemptive, free of interest, mortgage as. an incentive in lieu of the present gift, is needed to overcome the defects of the present subsidy gift, and to restore much-needed confidence in first mortgage security of property.