BUILDING WORK.

Star (Christchurch), Volume LXVI, Issue 20360, 18 July 1934, Page 4

BUILDING WORK.

Revival of the Subsidy Scheme. AID IN ERECTING HOMES. (“ Star ” Parliamentary Reporter.) WELLINGTON. July 17. The revival of the building subsidy scheme on a modified basis has been decided on by the Unemployment Board. The subsidy will apply principally to dwelling houses, and will be paid at the rate of a shilling per square foot of floor space, with a maximum subsidy of 8 per cent of the contract price, or £BO. * ’ In announcing the latest scheme, the Minister of Employment, the lion Adam Hamilton, said: “ When the • building subsidy scheme was initiated ! a little over a year ago on a more wide i basis than when it was first introduced ; in 1932 it resulted in the employment j of large numbers of men and was of j distinct advantage in re-absorbing j many of them in their original trade j at ordinary wages. Although it represents our largest industry outside agri- j cultural and pastoral pursuits the j building industry was at the time prac- ! ticallv at a standstill, and this almost complete stoppage was certainly not traceable to existing buildings being sufficient for all requirements. Reply to Criticism.

The main criticism that appears to have been directed against the scheme is that certain companies should and would have built without the aid of a subsidy. That may or may not be the position The subsidy scheme of the previous year (1932), limited to non-commercial buildings, failed to create any activity outside the jobs for which subsidy was granted. By the expenditure of a subsidy which approximated from S to 10 per cent of the capital cost involved it was possible last year to stimulate the expenditure in the building industry of over £4,000,000. Actual applications received for subsidy totalled- a value of over £5,000,000, but a number had to be cancelled owing to the inability of the applicants to proceed even after subsidy had been approved.

Although the board had been criticised because the subsidy applied to buildings for wealthy concerns it would have incurred more criticism had it frustrated its efforts to get capita! moving by refusing to co-operate with any individuals or any firms that could prove they possessed capital. Unbiased examination of the effects produced on registrations by the building scheme would warrant the conclusion .that the considerably reduced numbers of registered unemployed to-day, coupled with the favourable cash position of the Unemployment Fund at the end of the financial year, was due largely to the effects of this scheme. x

he board has received many requests for revival of the scheme on the lines of that adopted last year, but most of those who made representations on the subject have suggested limiting assistance to new dwellings. It has been reliably calculated that nominally there is at the moment a shortage of ten thousand houses in the Dominion, and there is little room doubt that many of the existing dwelling houses, particularly in the larger cities, should be replaced. Abolishing Slum Areas. Apart from the assistance proposed, dealing as it does with individual applications, the Unemployment Board will readily co-operate with any local authority proposing any scheme for abolishing slum areas and re-building on modern lines. .This would have the double advantage of providing a substantial amount of work and effecting a much desired improvement in some congested city areas. In this case the board will be prepared to consider such applications very favourably. Any other type of house building proposals submitted also will be carefully considered by the board. Under the amended scheme, rules covering which will be published within a day Or two the Unemployment Board reserves to itself the right to refuse approval of assistance if the contract price of the dwelling exceeds £IOQO. The board having now gained much experience in administration of subsidy schemes has further simplified the operation of the scheme. Subsidy will be paid in proportion to the covered floor space, namely Is per foot, provided that the subsidy shall in no case exceed 8 per cent of the contract price nor more than a total of £BO for any single dwelling. It is not proposed in this scheme to make any rules interfering in any way with ordinary industrial conditions. Applications for subsidy to erect blocks of flats will be Considered on ' their merits. Use of New Zealand Materials. The use of New Zealand materials, where practicable, will be a condition of approval, and to avoid misunderstanding a list of imported materials that may be used without incurring any penalty will be printed on the application forms, whilst provision is beng made to impose penaltes involving a reduction in subsidy or cancellation of subsidy for the use of imported materials beyond those items specified. It is hoped that application forms for those who wish to avail themselves of the subsidy will be in the hands of certifying officers within a .week, but no application will be considered if work nas been before approval has been first sought and obtained.