BUILDING SUBSIDY

Wairarapa Age, 18 July 1934, Page 5

BUILDING SUBSIDY

SCHEME TO BE REVIVED. FOR DWELLING HOUSES ONLY. STATEMENT BY MINISTER OF EMPLOYMENT. It is announced by the Minister of Employment (the Hon. A. Hamilton) that the Building Subsidy scheme is to be reintroduced at an early date, in respect only to dwelling houses the contract price of which does not exceed £lOOO. Schemes by local authorities for ■the erection of groups of dwellings will be considered as well as applications from individuals. WELLINGTON, July 17. Mr. Hamilton, in the House of Representatives to-night, stated that when the building subsidy scheme was initiated a little over a year ago on a wider basis than when it was first introduced in 1932, it resulted in the employment of large numbers of men and was of distinct advantage in absorbing many of them in their original trade at ordinary wages. “Although it is our largest industry outside agricultural and pastoral pursuits-, ’ ’ the Minister added, ’ * the building industry was at the time practically at a standstill and this almost complete stoppage was certainly not traceable to existing building being sufficient for all requirements. 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 the subsidy. That may or may not be the position. The subsidyscheme of the previous year (1932) limited to non-commercial buildings, failed to create any activity outside the jobs for which the subsidy was granted. EXPENDITURE: LAST YEAR. “By the expenditure of a subsidy which approximated from eight to ten per cent, of the capital cost involved, it uqis possible last year to- stimulate the expenditure in the building industry of over £4,000,(TOO. The actual applications received for the subsidytotalled in value of over £5,000,000 but a number had to be cancelled owing to the inability of the applicants to proceed even after the subsidy had been approved. In its efforts to restart this industry, the Unemployment Board aimed at releasing capital, this being the point to which the blockade could be traced, and accordingly the rules of the subsidy scheme were- extended to apply to all buildings, commercial or otherwise. Although the board has been criticised because the subsidy applied to buildings for. wealthy concerns, it would have incurred more criticism had it frustrated its efforts to get capital moving by refusing to co-operate with any individuals or any firms that could prove they possessed capital. The board did not receive any practicable alternative suggestions as to the action necessary to be taken at a time when the industry was in such a difficult position. It seems to be not altogether fair when successful results have been achieved, to say that matters would ■have gone on just the same whether any action had been taken or not. An unbiased examination of the effects produced on registrations by the building scheme would warrant the conclusion that the considerably reduced numbers of registered unemployed today, 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. The building industry is not by any means as dull as it was when the Unemployment Board introduced the subsidy scheme last year, and in consequence it is proposed to revive the scheme in a somewhat modified form and only in respect of new dwelling houses. SHORTAGE OF HOUSES. “The board has received many requests for the revival of the scheme on the lines adopted last year,” the Minister observed, “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 for doubt that many of the existing dwelling houses, particularly in the larger cities, should -be replaced. A long period of depressed economic conditions has had the effect of forcing more than one family to share a single' house and this prevented to some extent the real shortage of houses from becoming very apparent. With a tendeney for economic conditions to improve, the board feels that the time is opportune .to offer special encouragement to the building of houses and it confidently anticipates general approval of the proposal, as, apart from the question of the house shortage, any stimulation in building activity reflects quickly and advantageously on the labour market.

CLEARANCE OF SLUM AREAS. Apart from the assistance proposed in dealing w’ith individual applications, the Unemployment Board will readily co-operate with any local authority proposing any scheme for abolishing slum areas and rebuilding on modern lines. This would have the double advantage of providing a substantial amount of work and effecting a muchdesired improvement in some congested mty areas. In this case, the board would be prepared to consider such applications very favourably. Any other type of house-building proposals submitted will also be carefully considered I. the board under the amended scheme, the rules covering wh’eh will be published within a day or two, the Unemployment Board reserves to itself the right to refuse the approval of assistance if the contract price of a dwelling exceeds £lOOO.

PAYMENT on floor space. board > having now gained much xp iehce m the administration of the subsidy scheme, has further simplified the operation of the scheme. The subsidy irtll lbe paid in proportion to covered floor space, namely, Is per foot provided that the subsidy shall in no case exceed 8 per cent, of the contact" price, nor more than a total of £BO for to to?,” 8 b / ing - Tt is not r™Poaed scheme to make any rules intertenng m any way with ordinary industrial conditions. Applications for a subsidy to erect blocks of flats will be considered on their merits. The use tto»w”’ r ?, ealand raaterials where practicable will be a condition of approval, and to avoid misunderstanding, a list of imported, materials that may bo without incurring any penalty will be

printed on the application forms, while provision is being made to impose penalties involving a reduction in subsidy or the cancellation of the 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 the work has been commenced before approval has been first sought and obtained.— (P.A.)