HOUSING SCHEME

Press, Volume LXXI, Issue 21415, 6 March 1935, Page 12

HOUSING SCHEME

Consideration By Government WORKERS' HOMES DISCUSSION IN HOUSE OF REPRESENTATIVES Urom Our Parliamentary Reporter.] WELLINGTON, March 5. Another indication that the Government is considering launching a housing scheme for workers, and that the provision of facilities for workers' home building has not been lost sight nf, was given by the MursHM- for Finance (the Rt. lion. J fr Coates) in the House of .Representatives to-day. During the committee discussion of the Mortgage Corporation Bill, the Minister was asked by Mr D. G. Sullivan (Lab., Avon) and other members if the Mortgage Corporation would advance loans for city house-build-ing, and, if this were done, whether the advances would be restricted to 66 2-3 per cent, of the security. Mr Coates assured Mr Sullivan that cases of workers requiring homes would be considered by the corporation; but that loans would be to a two-thirds basis. He explained that he was investigating housing problems, and that the matter would be dealt with comprehensively later

Difficulties Foreseen Mr Sullivan emphasised the difficulties which might be experienced by the average working man who •wished to build a home on an advance from the Mortgage Corporation. Workers would find it hard to secure a second mortgage for }he remaining one-third of the amount required, and would have to pay a high rate of interest on this second mortgage. This would bring the total payments in most cases to an amount in excess of their resources. If the Mortgage Corporation advanced only two-thirds of the security, the worker would on the average home have to raise another £ 250." "I take it." said Mr Sullivan, "that U\o corporation will actually go into the business of making new advances to workers for homes." Mr Coates: Yes. But that clues not cover the whole question. I know that nobedy can justify the position as it exists in some of our cities, and that the necessity for improving housing conditions is generally realised. Parliament, must be prepared to take very clear-cut action in this direction, for strong vested interests will have to be dealt with. I am speaking without the authority of my colleagues; but I can say we are examining the proposals and methods tried out in different countries. The methods adopted in Great Britain would need to be modified before they could be applied to New Zealand conditions: but they are ail being investigated. Terms of Loans Mr Sullivan, returning to the subject in the evening, said that a progressive housing scheme would stimulate employment throughout the country: but that the terms of the Mortgage Corporation loans would ccr'ainly do little to improve the position He hoped that the Government ■would n<>\ put too great a burden on local bodies with any building scheme ;• brought forward. That would place V:cal bodies in an impossible position. Plven now they were losing thousands of pounds a year in collecting rents, ft the Government were going to shelter behind the Jccal bodies, any housing scheme could not be otherwise than ineffective.

Mr J. O'Brien (Lab.. Wesllandi supported this view, and complained about the "closing down" of the State Advances Department. The Mortgage Corporation proposals would mean that hardly a working man in the country could take advantage of the advances.

Mr Coates said that apparently some members thought the workers' branch of the State Advances Department was active; but it had not been so for some time. It was not making loans. Mr Walter Nash (Lab., Hutt): It has been making loans this year.

Mr Coates: Not at 95. Mr Nash: Up to a fair amount. Mr Coates: Not even up to CO. Mr F. Langstone (Lab., Waimarino>: If five you stopped it? Mr Coates: No. The matter has not reached mo. It is purely a matter of administration.

Consent to Transfers

Continuing. Mr Coates said it had been asked what security workers on •State Advances loans would have that they would be treated fairly by the corporation? The check was that the Minister had to consent to transfers. >f a satisfactory arrangement could not be made, the mortgage would be handed back. He recognised that some of those occupying houses were unemployed, and he could clearly indicate the policy of the Government was "■<> sec that in deserving cases protection was given. There might be circumstances where a "rounding up" was richly deserved; but generally it was not a man's fault if he were unemployed. He knew cases where regular payments had been made for 12 and 15 years, and a worker then found 'hat he could not keep up his payments: but no one would suggest tha' because a man had lost his job he should lose all his equity in his home. Housing Plans Mr Coates said it might be necesKfiry to continue the workers' branch. Replying to questions bearing directly on the Government's housing plans, hp said the co-operation of local bodies was wanted. What Mr Sullivan nad said about the difficulties was '[' lite true; but he thought they could be overcome. He wanted to get a practical scheme to meet the problem; but. •t would be premature for him yet to say very much, as the details had 'o be worked out. There were at least tnrce different methods of meeting the problem, and several schemes were being examined with a view to drafting legislation. One important decision was whether there should be groups of flat build'rigs, as in Great Britain. He thought the feeling in New Zealand was against that system. Mr Sullivan: Can you advance a scheme by calling the local bodies into conference. Mr Coates: Yes. But the Government must have its plans ready first, we know what these conferences are. They go on for days unles a practical Plan is laid before them.