COST OF STATE HOUSES

Southland Times, Issue 23379, 10 December 1937, Page 6

COST OF STATE HOUSES

Labour Legislation

Blamed

POSITION OF SMALL BUILDERS

EFFECT ON OPERATIONS OF MASTER SCHEDULE

(From Our Parliamentary Reporter) WELLINGTON, December 9.

The high cost of dwellings erected under the Government’s housing construction scheme was attacked by Mr J. Hargest (Nat., Awarua) during the debate on the State Advances Corporation. Amendment Bill in the House of Representatives today. The master schedule stipulated by the Housing Construction Department, said Mr Hargest, had the effect of preventing small builders from keeping down costs if they were to tender for houses. “This master schedule is one of the principal causes of complaint,” said Mr Hargest. “The master builders maintain that they could put up houses £lOO cheaper if they were not tied down in that respect.” The Parliamentary Under-Secretary for Housing (Mr J. A. Lee): We advertised some houses in Invercargill without a schedule, and I am afraid the prices were just the same. Mr Hargest: The prices for these Government houses are running out at about 22/6 a foot.

Mr Lee: I have denied that frequently. Mr Hargest: The Under-Secretary may have denied it, but he has not told us what the prices are today. Mi- Lee: I would say that we are still getting houses round about £1 a foot, except in some isolated districts. “The Government said it was going to build houses costing between £6OO and £800,” Mr Hargest continued. “Now we find that they are costing from £lOOO to £1300.” Mr Lee: They are costing from £B5O upward. Mr Hargest: The rent was supposed to be under £1 a week, but it ranges from £1 to 33/6. Mr Lee: The rents are from 17/6 a week upwards. “The fact remains that these houses are costing more than was anticipated and. in consequence the rents are higher,” said Mr Hargest. “It is the Government’s own legislation which is responsible for that. If the Government had co-operated with the building societies in making cheap finance available the costs would not have been nearly as high and the shortage would have been overtaken more rapidly.” RENTING OF HOUSES RECIPIENTS OF HIGHER SALARIES ELIGIBLE (From Our Parliamentary Reporter) WELLINGTON, December 9. The lifting of the income restriction of £3OO a year imposed on applicants for State houses will definitely apply to houses built for renting under the Government’s housing construction scheme. This was made clear by the Minister of Finance (the Hon. W. Nash) during the debate on the State Advances Corporation Amendment Bill in the House of Representatives today. Mr J. Hargest (Nat., Awarua) said the Bill apparently was an attempt to liberalize the conditions and it seemed that the income restriction was to be abolished altogether.

Mr Nash: That is so. Mr Hargest: Is it a fact that people earning more than £6 a week have already been successful in renting new Government houses? Mr Nash: Yes.

“I quite agree that that should be done,” said Mr Hargest. “It stands to reason that people on lower incomes cannot afford to pay the rents for some of these houses. If the income restriction is lifted the Government has a better chance of getting tenants who will stand up to their responsibilities. People in the Hutt Valley who are getting good salaries have been able to find houses.” The Minister: That is grossly unfair. I happen to be the member for the district, but I was out of the country when the houses were let. Mr Hargest: I intended no Reflection on the Minister. All I am saying is that it is better to have tenants in the houses who can afford to pay the rents.