State as House-Builder

Sun (Auckland), Volume III, Issue 713, 12 July 1929, Page 8

State as House-Builder

Workers’ Homes —At a Cost

AS a builder of ready-made bouses, the New Zealand Government was not altogether a success. Reasonably cheap dwellings were provided for departmental employees—but at a cost to the country. Now the State house factory at Frankton has almost completely disappeared, and the machinery has been absorbed into other departments.

In establishing a factory at Frankton in 1923, the Railway Department did not enter the house-building line of business with the idea of amassing profits for the State; nor was it originally intended that the Government should become a serious competitor with private builders. The house factory was designed to give railway workers comfortable living quarters at a reasonable cost. To a certain extent this purpose was achieved. Departmental dwellings, produced in sections at the factory, were erected in 170 localities, in numbers varying from one to the limits of large settlements like Hutt Valley, near Wellington, Ohakune Junction, Otahuhu and similar communities of workers In the South Island. Certainly the majority of these dwellings bore unmistakably the stamp of factory-cut, but all modern conveniences, such as electric light, hot water, drainage and high pressure water systems were installed wherever these facilities were available. In large settlements attention was paid to reservations for recreation purposes and for prettily designed gardens, and in some places the department assisted in forming and equipping sports grounds. RELIEF TO CITIES Moreover, State house-building gave substantial relief to overcrowded cities —particularly Wellington, where the shortage was acute —thus bringing workers closer to their jobs, giving them a community interest, and at the same time depriving them of none of their usual facilities for entertainments. But all this was accomplished at heavy cost to the country, as the comments of Ministers and the figures of the public accounts will show. In 1926 it was apparent to the Prime Minister and Minister of Railways, the Rt. Hon. J. G. Coates, that the housing and sawmilling- scheme was on a scale too large for the- requirements of the department, having regard to financial exigencies, and that the completion of the building programme would relatively increase losses. Local bodies were then invited to use the Government’s facilities for the relief of city congestion, and in 1925-26 advantage was taken of this offer. Wellington alone used 254 houses in a year.

Whether or not the Frankton house factory has proved economically successful to the country can hardly be judged superficially, but must be weighed in terms of finance allied with comfort, convenience and contentment of the workers through the improved environment. Financially it would appear not. Up to 1924 all houses erected for the railways were built by contract. In 1920 one five-roomed dwelling was put up at a cost of £971. In the following year 56 houses of this class were built, aud costs fell to £950, later dropping progressively as the building operations of the Government were extended. In 1923 the price was £B3l. Then the Frankton house factory was established, but the main cutting operations were not started until 1924. Mass production showed immediately in costs. In one year 300 houses were cut to size and 258 were erected, the cost falling to £674. Subsequently this figure was still further reduced. FINANCIAL LOSS Railway accounts presented to Parliament last year—the latest figures available on the working of this branch —show that departmental dwellings cost the Government a net loss of £54,172 in the year 1926-27, and £68,620 In 1927-28. The factory at Frankton has not worked effectively for about a year. During its existence it turned out something in the vicinity of 1,200 houses, most of which were erected for the department in various: parts of the Dominion. From April 1, 1925, to the same date last year, for example, 836 factory-cut and 39 non-factory-cut dwellings were completed by the Railway Department. Over 620 of these were put up for the Railway Department and 252 were built at the workers’ settlement at Lower Hutt. At full time, the works at Frankton employed about SO men. In one year it handled just on 9,000,000 lineal feet of timber, an average of 15,771 feet in every working day. A great deal of this was from the New Zealand bush and the stoppage of the factory some time ago has contributed to the - depression in the industry. In a week or two nothing of the factory will remain. Most of the plant has already been removed, and shortly It will function in other departments and lose altogether its identity with the State as a house-builder.