RENT-RESTRICTING AND HOUSE-BUILDING

Dominion, Volume 13, Issue 181, 27 April 1920, Page 3

RENT-RESTRICTING AND HOUSE-BUILDING

THE LANDLORD'S POINT OF-VIEW

Speaking about the City Council's effort' to provide houses at Northland for the houseless, a Wellington builder told a Dominion , reporter that it was absurd to think that any action on the part either of the Government or the City Corporation was likely to • hasten the solution of the problem, any more than tho "hot-air" talked at street corners by Labour members of the council, who knew better. ■ The fact that the council was able to secure the services of half-a-dozen men only meant that _ it was borrowing them from other - jobs which were, as likely as not, residential structures'. ; It needed only a mor riiont's thought to convince anyone thatthey were, simply playing draughts with tha ir.en. Each move meant a little . moro per day in wages for the men concerned, and ■ a consequent increase in the coat of construction. "The greatest economic factor,"., said thj reporter's informant, "in bringing about this abnormal shortago of houseswas the action of the Government;in passing the Rent Restriction. Bill, which provided for an-eight per, cent, return on the capital outlay involved in the land and building. This action at once 1 put an end to the activities of tho speculative builder, on .whom every community has depended-more or less since, the New Zealand Land Company established "Wellington. Anyone knows that property, considering the price of painting, paper-hanging,'" plumbing,- • and carpentering, cannot be worked on an eight per cent. ietu'fli?i ,It should be at least 10 per cent., and 12 per cpnt. would not be unreasonable as, things go, r I jfill -go" further,, and state "that the Act mentioned has ■ been the cause of raising the rents in many ways; for had tho measure not been passed .the speculator wimld have ■ continued to operate and the shortago of houses would not have been so acute as it is. Tho Labour people, whenever they open their mouths, inadvertently- . condemn the tenant, not the landlord, for they are continually tolling the public how crowded-the houses - are—crowded by the action of the tennnt in sub-letting, not by, tho action of the landlord. There are nit.ny tenants who go so far as to beast that they, by! sub-letting,' live rentiTC". lam not sure whether that is not tin: worst form of profiteering- that .exists!"