“OWN-YOUR-OWNHOME" SCHEME ATTACKED

Wanganui Chronicle, 31 October 1946, Page 2

“OWN-YOUR-OWN-HOME" SCHEME ATTACKED

MR. LANGSIONE AT RAETIHI (0.C,) Raetihi, Oct. 30. “I want to expose the impossible proposition put forward by the Leader of the Opposition, Mr. Holland, at Christchurch in relation to the sale of rental houses to those desirous ot purchasing them,” said Mr. F. Langstone, M.P., in a farewell address at Raetihi last night. Mr. Holland's scheme, he said, was that the purchaser has to pay 30s a week for forty years, which would total £3120, the State having to pay rates, insurance and upkeep out of the 30s, which would amount to £24 per annum or £960 for forty years. The State would then recover the £1650 cost of building and the section, which would leave a balance of £5lO, without taking into consideration the cost and supervision and incidentals for the period or the other cost in laying out. roads and other amenities. “This £570 is threequarters ol one per cent, on the £1650 invested on nouse and section by the State," said Mr. Langstone. SECOND PROPOSITION “Mr. Holland's second proposition is that purchasers pay 25s a week for 30 years, which is £1950. A deduction of 5s a week has evidently been allowed to meet rates and insurance. The cost ot' these incidentals would at least be £24 a year, which the purchaser must pay himself, which would amount to £i2O for the period. Deducting the cost of the house and section from £1950 leaves £3OO for a period of 30 years, which Is about one per cent, of £1650. “The question will be asked," said Mr. Langstone, “will this be applied to all rental properties and businesses and will the same law as made to apply to State tenants be applied to all other tenancies?

"This is revolutionary,” said the speaker and the property classes who are supporting the National Party would not permit that political party, if it became the Government, to enact such revolutionary legislation.

“It would mean tliat the return from investments would be reduced to such a low figure that a person would have to have £42,500 invested to bring him in the same income as is obtainable by an aged couple under our social security benefits." Mr. Langstone said he felt sure that Mr. Holland did not understand tlie effect of the proposal he put forward in his policy speech. FARMERS ASSISTED Mr. Langstone dealt extensively to combat statements that farmers had been unfairly treated by the Labour Government since assuming power In 1935. He said that in 1934, because of the slump, many farmers were financially insolvent and on the verge of bankruptcy and eviction. They were placed under a vicious stay order and a slump Budget system, which imposed a most humiliating condition upon them, said, the speaker. On the advent of the Labour Party to power it set about assisting the farmer. In 1936-37 it introduced a guaranteed price which immediately increased the price of butter-fat by Is Old per lb., almost an increase of 50 per cent, to the farmer. In addition, legislation was enacted known as the Mortgagors and Lessees’ Rehabilitation Act, permitting farmers to go to adjustment commissions and seek relief from an intolerable burden of debt. Mr. Langstone said that more than £8,500,000 was officially written off mortgagors’ interest and civil debt and probably an equal amount would be written off voluntarily. “Many farmers can to-day thank their prosperity to these beneficient acts,” said Mr. Langstone. The Government had fully assisted the farmer right from the time it assumed office.