RURAL HOUSING

Bay of Plenty Beacon, Volume 4, Issue 153, 10 September 1941, Page 2

RURAL HOUSING

"NOT BEEN A FAILURE'"

REPLY BY MINISTER

FARMERS' UNION STATEMENT

An emphatic denial to the allegations made at the recent meeting of the Northern Thames Sub-Pro-vincial Executive of the Farmers' Union that the Rural Housing Scheme had been a failure is contained in the following letter from the Hon. H. T. Armstrong, Minister of Housing.

As a result of discussion at the Farmers' Union meeting, a Netherton remit that "This branch requests the union to endeavour to have the Rural Housing Scheme amended to enable a farmer to cut off a small area of his property anil erect a worker's dwelling thereon, (he liability for the cost of this to be limited to the portion cut oil and not loaded on to other assets," was referred to the Auckland executive. A full report of the meeting appeared in the Hauraki Plains Gazette of July 30 and was referred to the Minister by Mr J. Thorn, M.P. for Thames. The Minister's reply reads as under:— "I acknowledge receipt of your letter of August 4 enclosing a cutting from the Hauraki Plains Gazette dated Juty 30' reporting a meeting of the Northern Thames SubProvincial Executive of the Fanners' Union. Lack of Knowledge "My attention has been, drawn to the statement made by certain members attending the meeting and s . ! relating to the Government's general housing scheme as it concerns the farmer. At the outset I can only say that several of the speakers, if tliey have been correctly Reported, displayed an almost complete lack of knowledge of the existing schemes. "Mr Blackmore is quoted as saying that the Rural Housing Scheme had been a failure simply bccause the counties could not lend on doubt' ful cases because all the ratepayers were liable for the repayment of the Moan. I say emphatically that the Rural Housing Scheme has not been a failure on this or any other account and the counties who fully Investigate the provisions of the Act and have commenced operations under the scheme have proved what ft benefit it has been to the farmers In their respective areas. "I?p to end of March of this rear, loans granted by the Loam? Board for this purpose total £649,750 and further applications have since been received. Several counties have already exhausted their first loans and have applied for additional advances.

Council has First Mortgage "It should be appreciated that the county council has first mortgage over the farm property concerned and X think it may be fairly stated that it would be a very poor farm indeed that could not on a valuation, taking into consideration th:i value of the new house to be erected, furnish reasonable security for the amount required to complete the building proposal. "The council will of course exercise discretion in granting loans and there should be no danger of a farmer over-capitalising his property if the applications are carelully_ examined by the councillors who will have practical local knowledge of the farms and the applicants. "Mr CJieale is "reported to. have said that th<> Government was building houses in the cities for 10 per cent interest while the farmer had to pay 4Y* per cent. Under the provisions of the Rural Housing 4ct the rnte of interest to the farmer desiring to build his own home is per cent while the: same home builder in the city pays. 4% per cent for a Government advance. Homes for Workers "The Netherton branch of the Union, in iraming its resolution regarding the erection of workers'* dwellings has apparently overlooked the fact that apart from the r&cilities under the Rural Housing Scheme and Jhe Stale Advances Corporation, there is provision covering the erection of permanent accommodation for farm workers under the Counties Act and if the Union considers there is a definite and permanent demand for these dwellings, they should request the members of their county council to

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investigate the position bearing in mind the facilities the Government has provided. "If any county council were prepared to undertake a comprehensive housing scheme an application could be considered under the Housing Act. "I am unable to reply to Mr Sutton's allegations regarding the farmer who was declined assistance to erect a shavemilker's cottage as I have no knowledge of the circumstances, but if he considers that the party in question has a grievance, he may state the facts to me and I will be only too pleased to investigate the circumstances," concluded the letter.