Housing Problem.

Star (Christchurch), Volume LXVI, Issue 20556, 6 March 1935, Page 6

Housing Problem.

Workers’ Advances

Opposition Challenge to Mortgage Bill. “ Star ” Parliamentary Reporter. WELLINGTON. This Day. to the suggestion of the Government that the housing problem could be tackled with the co-operation of local bodies, Mr Sullivan (Avon), in the House last night, when the Mortgage Corporation Bill was being debated, declared that their rate burdens put them in an impossible position at present. They were losing tens of thousands annually through difficulty in getting interest and rent. If the Government was going to shelter behind local bodies it would not meet the position, because local bodies would be unable to raise loans for housing in view of the losses on municipal schemes already. Mr Coates: Co-operation with local bodies is not sheltering. Mr Sullivan: One cannot intelligently discuss the matter unless the Government’s proposals are disclosed. There is a desperate position and no adequate means of finance. Speakers pointed out that the Corporation’s advance limit was 66 per cent, though the workers’ branch of the State Advances had assisted to solve the housing problem advances up to 95 per cent of the value. “If we had known what this Bill was going to do there would have been a fight to a finish,” said Mr Parry (Auckland Central) emphatically. In the first place they were told another Bill contained the provisions, and they were asked to shut up an institution which had rendered valuable service in providing workers with homes. They were asked to put up the shutters on the word of the Minister that he was making some kind of provision. It was not a fair deal. Mr Fraser (Wellington Central) asked if the Minister would give an undertaking that the Mortgage Corporation would take the same reasonable course as the State Advances Office when a worker was in difficulties. Minister’s Consent Necessary. The Minister said if the Mortgage Corporation took over these securities and wished to take action the Minister’s consent w’hs necessary. “ When he hands the mortgages over, if he cannot get a satisfactory arrangement the mortgages will not be handed over,” said Mr Coates. He asked members to realise that he had given the nece’ssary assurances four or five times that mortgagors occupying houses would receive consideration, and the policy of the Government would be to see that they were protected. He proposed to have the workers’ branch reviewed from top to bottom. Dissatisfied with the Minister’s statements regarding the future of workers’ advances, the Opposition challenged the adoption of Clause 36, but it was retained by 33 votes to 22.