RURAL HOUSING

Bay of Plenty Beacon, Volume 2, Issue 164, 24 May 1940, Page 5

RURAL HOUSING

COUNCIL SHELVES SCHEME WAR CONDITIONS INFLUENCE DECISION "Having regard to the international situation the Council defers its application for the Rural Housing Loan" was the motion carried by the Whakatane County Council at Wednesday's meeting, when it was agreed by members that the situation which has recently developed in Europe made inad-< visable the prosecution of the Rural Housing Scheme. The Council had advertised its intention to consider a moiiento apply to the Local Government Loans Board for its sanction to raise a loan ' of £.">O,OOO for the purpose of making advances to ratepayers under the ' Rural Housing Act, 1939. The Coun- . cil asked any person having an objection to the proposed loan to sub- , mit it in writing. Six objections were received, four from individual ratepayers, one from the Rangitaiki Plains Branch of the New Zealand Farmers' Union and one, a tion carried at a meeting of Tancatua ratepayers convened by the Tancatua Branch of the Farmers' Union. The Rangitaiki Plains Branch of the Farmers' Union objected to the levying of the special rate, stating that this should be borne by the individual borrowers. The Tancatua meeting's resolution suggested that the scheme be dropped until more favourable times and that in the event of its being reconsidered, the ratepayers should be given the opportunity of discussing the matter and giving voice to their opinions. Council Discussion. Cr Burt said he had consulted several ratepayers and while they considered it a good scheme they were of the opinion that the present was not the time to bring it in. Cr McGougan said he attended the Taueatua meeting and had made a statement that was not correct. "I thought that we were not striking the rate, but that we had the power to strike it," said Cr McGougan. "It was said that I was misleading the ratepayers." Cr McGougan said that lie favoured the scheme in the first place but thought that it would not be wise to embark on something new at the present time, although houses were needed. "As a representative of the ratepayers I would not like to go against them, although if I thought a thing was justified I would go on with it and then Jhiejy ciould put me out." Cr Smith was of the opinion that Rural Housing was a sound scheme. "Under the present circumstances we don't want to fo'st the scheme on to the people if they don't want it," he said. The Councillor added that lie was in favour of striking the rate as that was the one thing making the scheme sound.

Motion to Defer. "It is sound if administered with caution," said Cr McCracken. "The ratepayers are looking for a nigger in the wood-pile and they can't find it." Gr McCracken said that the housing problem had been brought before the Government repeatedly. Not only the present Government— the position had obtained for many years, and this was the first scheme which had been at all feasible. It would be wiser to defer it under present conditions, but not drop it altogether. He moved that having regard to the international situation consideration should be deferred. This was seconded by Cr Burt. Cr Spence said he was sorry tp see the scheme not adopted straight out. If it had been explained fulfy to the public there would not have been the uneasiness shown. Cr Cawte thought that a good deal of the objection was due to misrepresentation and to the ratepayers being misinformed. Benefit of Scheme. A brief outline of the Taneatua meeting was given by Cr McCready, who said that it was in the resolution read that the Council be asked to defer the scheme to enable the (Continued at foot of next column)

ratepayers to discuss it. The chief objection w r as the public backing of private enterprise. It was a poor farm that would not stand a house as a mortgage. On that reasoning, why strike the rate? In answer to a question by the Chairman, Cr McGreatly said the alternative advanced was to obtain the money from the State Advances Corporation and let 'chat body take the place of the County Council. "A lot of people are under the impression that it is the County striking the rate," said the Chairman, "but that is not so. We are asked to by those lending the money. We could not get the money without striking the rate." Regarding obtaining money from the State Advances, the Chairman said he had known of cases where applicants had had to wait eighteen months for 1 the loans to be granted. They would be dealt with expeditiously under the Rural Housing scheme, it being estimated that construction would commence within six weeks of approved applications being lodged. Mr Burnett said that developments in the last ten days 6r so had materially altered the position. He was prepared to address meetings of ratepayers and explain the position to them. However, because a few could not take advantage of the scheme, it was no reason for turn-* ing it down. He thought it better to defer the scheme in the meantime. The motion was carried.