STATE HOUSING SCHEME

Southland Times, Issue 23335, 20 October 1937, Page 4

STATE HOUSING SCHEME

Policy Of Renting Homes Defended “HIGH COSTS PART OF POLICY” ACTIVITIES OF PRIVATE ENTERPRISE (From Our Parliamentary Reporter) WELLINGTON, October 19. A vigorous reply to criticism of the Government’s housing scheme was given by the Parliamentary Undersecretary for Housing (Mr J. A. Lee) during the financial debate in the House of Representatives today. Various factors had contributed to the housing shortage experienced in New Zealand during the last few years, Mr Lee said. However, what made the position really acute was the demand for a higher standard of housing. The question involved far more than the mere relation of the number of people to the number of houses available. The Government had lifted the standard of living for the overwhelming majority of the people and immediately a shortage of housing had become apparent

“Private enterprise has never made a serious attempt to tackle the housing problem,” Mr Lee continued. “Had it not been for the State Advances system in New Zealand we would have been faced with an even more serious shortage of houses than that which we are endeavouring to overcome today. Whatever criticism we may offer of the old State Advances Department the fact remains that it did build houses.” The provision of houses, said Mr Lee, was definitely a social service. The shelter value of a house was just as great during a time of depression as it was during a time of boom. However, in dealing with the problem the Government had to contend not only with a shortage of houses, but also with a large untrained army of unskilled men, a legacy from the reactionary policy of the previous Government. Houses were being built for renting because people were so scared of a possible return to power of the last Government that they would not build their own homes. TRAINING OF WORKMEN Much had been made of the increased costs of housing construction, Mr Lee continued. There had certainly been some increase, but to a large extent it was justified by the fact that young workmen were being trained as builders and carpenters. This represented a direct saving to the Employment Promotion Fund, but the rising costs were not due to Labour’s administration. The rearmament programme overseas had given a terrific upward trend to housing costs in Great Britain, the United States and Australia and it was probably only in New Zealand that the upward trend was noticeable in actual building activities. Opposition members had stated that the cost of house building by private enterprise worked out at 11/- a square foot, but that figure was absolutely incorrect. In 1928-29, according to figures supplied by the Government Statistician, the cost of housing worked out at 16/- to 18/- a foot and that for a house of a lower standard of construction than the present Government houses. “Quite apart from that,” said Mr Lee, “it is just as well to admit that high costs form part of this Government’s policy. We hold that an increase in production should be reflected in an increased standard of living. For instance the houses we are building today are capable of improvement and they will certainly be improved. It may be possible for us before long to increase the size of the rooms. At the moment we cannot do that, but we will do so as soon as possible.” HOUSES AT MIRAMAR The question of rentals had also given rise to some criticism, Mr Lee continued. At Miramar in Wellington there were on opposite sides of the street houses just erected by the present Government and houses which had been built by the previous Government. The older houses were good houses. He was quite prepared to admit that and Wellington would have been poorer without them. However, the rent for one of the few four-roomed houses was 25/- a week, but the total annual charges on a four-roomed house on the other side of the road was £lO4 6/8. “The figures have been examined,” said Mr Lee, “and I have been informed that in the case of the older house which I have mentioned it will take 103 years for the principal to be liquidated. It is far better to build houses for renting at 25/- a week than to perpetuate that state of affairs. There is security of tenure so long as the tenant plays the game.” The Housing Construction Department, Mr Lee added, had been in existence for under a year. Already it had acquired land in 52 towns and was carrying out investigations for the purchase of land in 22 other towns. It had advertised in contracts 1743 houses for construction and of these there were 1200 houses either built or in the course of construction in 30 different towns. The total number of men employed last week was 1800 and in addition there were an additional 1800 people engaged in the production of material. Under the whole scheme there were almost 4000 people gainfully employed in building assets and adding to the tangible wealth of New Zealand.

VARIETY OF DESIGN REQUIRED GREAT AMOUNT OF WORK ENTAILED (United Press Association) WELLINGTON, October 19. “The present housing policy in New Zealand is almost a milk and water policy compared with the generous assistance granted in other countries,” said Mr A. Tyndall, Director of Housing Construction, in an address on the work of his department to the Rotary Club. Outlining some of the activities of his department which, although it was spread all over the country, was not a very big one because he had tried to utilize private enterprise to the full, Mr Tyndall said there were now about 1000 different designs for houses. The Government had said every house had to be different and in that it was requiring something that had been done in no other housing scheme in the world. The variety of design entailed a tremendous amount of work. Recently, for instance, the Public Works Department' had submitted a bill for 34,972 blueprints and in all about 50,000 blueprints had been made. Land for the housing schemes had been purchased in 52 towns and building contracts had been let in 30 towns. The houses begun up to this week

numbered more than 700 and the department was advertising contracts for houses at the rate of 55 houses a week. The houses were not “workers’ homes” but homes for the people of New Zealand as there would be no income limitation.