WARMLY APPROVED.

Star (Christchurch), Volume LXVI, Issue 20360, 18 July 1934, Page 8

WARMLY APPROVED.

New Building Subsidy Scheme. MUCH-NEEDED STIMULUS. The announcement of the application of a building subsidy scheme to dwelling houses by the Unemployment Board was received with warm approval in real estate and buijding circles in Christchurch to-day. The subsidy, according tc general opinion, is the stimulus that has been wanting i»i the home building trade, and an immediate improvement ir, that connection is anticipated. Aid to Mortgagees. Mr O. F. Baker, vice-president of the Real Estate Institute of New Zealand expressed whole-hearted approval of the scheme. It would and assist many people to provide themselves with modern homes and would also be welcomed by people who were desirous of selling land for building purposes. A good deal of land had fallen back on the hands of mortgagees in Christchurch as a result of the depression, and these people were keen to turn their holdings once more into sources of revenue. Previously, there had been great difficulty in selling this type of property, but. with the building siubsidv, the mai.ket would improve Under the previous scheme many homes had been built at values ranging from. £650 to £9OO, and there was no doubt that similar activity would result from the present scheme. It was true that speculators had taken advantage of the previous subsidy, but there was no serious fault to be found in that. Mr Baker said he considered that it would be unwise to put too brg a check on builders of this type for after all they were helping the industry along. Will Relieve Shortage. "It is the chance that the homebuilders have been waiting for,” said Mr C. E. Hoy. president of the Canterbury and West Coast branch of the Real Estate Institute cf New Zealand. “ There is no doubt that the scheme is sound and that it will do much to relieve the shortage of modern homes that is being felt in the suburbs cf Christchurch.” Mr Hoy said that the scheme would prove a decided benefit to real estate business, assisting in the sale o: building sections and generally improving trade Idle land had been costing the owners much money to held, and they would welcome the chance of turning it into revenue. The local bodies wo v ld also benefit by the stimulus to building, or. the principle that more homes meant more revenue from rates.

Mr Hoy added that there was a need in Christchurch for more modern homes for renting purposes. There was a demand for comfortable homes at rentals ranging from 22s 6b to 30s. but properties cf this type were difficult to obtain. The houses that w’ere vacant were generally old and in poor condition. The building subsidy would help to rectify this position He also said that, while there were a fair number of cheap homes for sale as a result of fallen values, the prices for these were not below the cost of new homes. For that reason, the general preference of home-makers was fer new buildings. Money for Investment.

Mr j. H. W. Sheppard said that the subsidy scheme, although net much availed of previously, might have a stimulating effect on bxiilding just now, when more money was available. It would no doubt be availed of by speculators, but that in itself was not a weakness in the scheme, for it did not matter much who undertook the building activity, so long as it went forward. A good deal of money that had been frozen was now available for investment. especially from trust funds, ar:d. taking a generaf view of the proposal. he thought it would be favourably received. In respect to poorer people, better housing conditions would stimulate self-respect. When people “ get down to it ” they did not care whether they paid or not. but in Getter circumstances they would make a greater effort. The People’s Opportunity.

Mr A. Paynter said that in view of the success of the previous subsidy the builders of residential property could regard the future with confidence. He anticipated a big rush of business. Many people had been waiting a favourable opportunity of providing themselves with new and modern homes, and the new subsidy was the inducement that the builders and everybody had been waiting for. There was no question that the community a whole would benefit by the circulation of money that would result frem activity in the building and allied trades. To-day £IOOO would provide a comfortable five-roomed home embracing all the latest improvements and conveniences that the industry developed. The subsidy meant that such a home could be built for £920. The trade had quietened down after the withdrawal of the old scheme, but all builders were confident that business would pick up again immediately.

Comment by Trade Union Secretary.

“I cannot understand the action of the Unemployment Board in reviving the building subsidy scheme after its condemnation of the scheme in its annual report,” said Mr E. C. Sutcliffe, secretary of the Carpenters and Joiners’ Union this morning in commenting on the announcement concerning the scheme made by the Minister of Employment, the Hon. Adam Hamilton. “ Of course, the fascination of getting easy money, I suppose, is at the bottom of the whole proceedings. I still favour loans being granted for building work, even at no rate of

interest, in preference to the Unemployment funds being used to give subsidies.’*

Mr Sutcliffe preferred not to comment further on the latest scheme until such time as he had complete details of it in his possession. In this connection he has written to the Unemployment Board for further particulars.