3

H.—lla

In addition, as shown later in this report, 106 workers' dwellings have been erected, or were being erected, by lqcal authorities and employers (the latter by means of loans granted by the Housing Board under Part 111 of the Act), making a total of 607 workers' dwellings erected or in course of erection. In every instance of loans to employers the houses have been let by them to their workers at rentals approved by the Board. As mentioned in last year's report, owing to the difficulty in obtaining satisfactory tenders, the Department found it necessary to arrange for the purchase of materials for 200 dwellings and to let the work of erection by various methods, such as letting contracts for the separate trades (labour only), or by assisting the contractors by obtaining or supplying them with materials, or by the employment of day labour, and so on. This involves a great deal of administrative work in the Department. Approximately 173 of the 200 dwellings have already been completed or are in course of erection in this way In a previous year's report the advisability of establishing workshops and of purchasing materials was mentioned in anticipation of a large number of dwellings being put in hand in the chief centres. Under such circumstances this course would, no doubt, have led to economy and efficiency. The work of the Department appears to lie, however, in the direction of spreading its dwellings over many towns of the Dominion, both large and small, extending from Auckland and Wellington on the one hand to such places as Te Puke and Fairlie on the other. The erection of only, say, 500 houses in one year would, therefore, not provide for a large number in any one centre, yet it would involve the expenditure of nearly half a million of money per annum. While the establishment of workshops and the purchase of materials in the chief centres would probably result in some economy, which the Department has already been able to demonstrate in regard to the importation of roofing-iron and other materials, the cost of storing the materials and distributing them to the jobs all over the Dominion would largely nullify the advantages anticipated. It would be scarcely possible, therefore, for the Department to compete with the local merchants and builders who carry on business in nearly every town, have their own shops and supplies on the spot, and know the local conditions. The letting of complete contracts would thus appear to be the most satisfactory method of carrying on the Department's housing-work. It enables us, moreover, to advise the applicants before building commences as to what the total cost of their dwellings will be. In the 1919 report it was shown that even under this system the Department had been able to provide dwellings at about £150 less in cost than they could be built for singly by private enterprise, on account of the saving on land purchased in blocks and the houses being built in groups, there being small charges for administration and no profits. The Department was faced with the problem of the increasing prices of materials during most of the year. The peak of high prices was reached in January last; since that time there has been a slight decline in prices, and labour is now becoming more plentiful. Owing to the high price the cost of the dwellings arranged for early in the year increased considerably beyond the original estimate supplied by the Architect. The principal items are cement, which is nearly double the price it was when several of the larger contracts were let—viz., £9 13s. 6d. per ton as compared with £5 ss. per ton —while timber has increased in price approximately 25 per cent., and there has been an increase in the price of labour. Although last session the statutory maximum was raised for concrete and brick dwellings (including land and administration expenses) from £850 to £1,000, and in the case of wooden dwellings from £775 to £900, it was soon found impossible to erect at a cost within those maxima. The cost of dwellings in concrete (excepting a few of a large design) including land, &c, recently completed varies from £975 to about £1,125. The estimated total outlay of the occupant for such a dwelling (covering interest, sinking fund, also rates, insurance, and estimated cost of maintenance, approximately 6f per cent.) is about £74 per annum, or £1 Bs. 6d. per week. This amount, while seemingly too large a rental for the average worker to pay, is really less than the rentals being charged for ordinary private houses which are built of wood. But for the rise in the cost of materials, &c, since the erection was begun, most of the dwellings of the usual design would have been provided for about £950 in all, involving a weekly instalment of £1 os. sd. (excluding rates and maintenance). Much of the criticism of the dwellings in the earlier stages of erection has now been dispelled by an inspection of the completed dwellings, and the general opinion—including that of the occupants themselves —is that the dwellings are comfortable and convenient, besides being reasonable in price when compared with other houses —being, in fact, some £200 to £300 less in cost. The Department has given every encouragement and assistance to applicants who have submitted their own plans and specifications, and in some cases obtained their own tenders, by revising the plans, finding the money, and so on. A number of dwellings have been erected in this way. This has entailed a good deal of supervision work. Following on your instructions, preference is in all cases now being given in the allotment of dwellings to those applicants with the largest families, and quite a number of very needy cases have thus been given timely assistance. The work of the Department in connection with housing might well be concentrated in this direction. These are the cases that most need help, and yet, as is well known, are those that in ordinary circumstances experience the greatest difficulty in securing houses, on account of the damage done by the children. The difficulties mentioned could be obviated to some extent by selecting the designs most suitable for large families, and the materials that suffer least from the activities of children, such as concrete or brick and plaster, rather than wood, scrim, and paper. The Department has been able to assist many returned soldiers in the erection of dwellings by supplying plans and specifications, and also materials from the Department's stocks. The latter were supplied at cost prices, which were lower than the ruling market prices.

2-H. 11a.