HOUSING SHORTAGE

Wanganui Chronicle, Volume 79, Issue 107, 7 May 1936, Page 9

HOUSING SHORTAGE

GOVERNMENT PROPOSAL EXPERIENCE OF TASMANIA SCHEME PROVES SUCCESSFUL [ Per Tress Association. 1 WELLINGTON, May 6. In view of the announcement regarding housing made by the Right Hon. JL J. Savage a short time ago housing activities elsewhere are of interest' and the Minister of Agriculture and , Forestry in the Tasmanian Government' (the Hon. R. Cosgrove), who arrived by tho Wanganella to-day, was able to give an outline of what his Government is doing. There was a housing shortage in Tasmania, Mr. Cosgrove said, and tho Government realised that the workers could not build homes for themselves without assistance. A housing scheme had accordingly been formulated in the most satisfactory manner. The Government advanced 90 per cent, of the value of the home and tho worker was expected to find the. other 10 per cent. Repayments were spread over 42 years for stone and brick houses and over 30 years for hardwood buildings. Interest was charged at 44 per cent., and 1 per cent, was added as repayment. In addition to interest and repayment payments made by a worker on any home the owner could pay £5 or multiples otf £5 into a fund administered by the» i Government. These amounts were not regarded as repayments of the principal, but as savings against unemployment or other future difficulties. The Government paid 5 per cent, interest on all moneys paid in, which was better interest than elsewhere, and the depositor could withdraw what he had paid in at any time, although there was no restriction on withdrawals. The main object of the fund, to make interest and sinking fund payments during difficult times, was observed in almost every instance. The Government did not allow workers to build homes they could not very well pay for out f their earnings. A limit was placed on the amount any worker could borrow, and it was graduated according of their earnings. A limit was placed maximum amount that could be borrowed for one home was £l2OO, but the average worker was limited to £B5O for a building and land. Sections in the suburbs of Hobart could be bought for £2 per foot, so that a section with a 45-foot frontage was valued at £90. 1 During the last financial year £50,000 had been spent on housing through the Government, and it was estimated that £1,000,000 would be spent during the present year.