SUBSIDISED BUILDING

Evening Post, Volume CXV, Issue 147, 24 June 1933, Page 8

SUBSIDISED BUILDING

(To tho Editor.)

Sir,—"Let the galled jade wince, our withers are unwrung," is a Shakespearean quotation most apt in connection with the Government's latest piece of class legislation—the No. 10 scheme, against which I have seen no newspaper comments. Will you be kind enough to allow me to cite my own case, which as yon know is typical of thousands throughout New Zealand, against this sectional interest measure. In 1927 there appeared to be a shortage of houses. I, having some cash augmented this by some mortgage money at 7 per cent, and built three houses at peak costs;' taking the usual risks •of earthquake, fire, borer, unsatisfactory tenants, etc, .The investment

was quite a good ono until the latter end of 1929, when rents began to "drop, and at the present time, of course, my equity is practically gone. The mortgagees, however, are quite secure. I did not squeal, when I saw my equity disappearing; like thousands of others I had to grin and bear it. But what I cannot bear with a - grin is the Government's extraordinary action to further cripple me _y offering a subsidy on all new building labour of from 33 to 50 per cent.—part of which subsidy lam compelled to pay. To me the thing is monstrous. The Government's own statistics show that the average cost of a house in 1927 was £843, and in 1933 it is £662. In addition, Ministers of the Crown are definitely asserting in different parts of New Zealand that "we have turned the corner," "there is a definite * improvement since January," "things generally are improving every day," etc. Thus the person who builds under the new scheme not only has me at a disadvantage in cost of over 20 per cent.,. but he has the further advantage of the 33 to 50 per cent, subsidy, and according to the Ministers of the Crown he will be definitely building on a rising market. What a harvest will this class gather in a few years at the expense of my class. Either lam looking at this, action ,of the . Government, through thewrong end of the binoculars or it bei. hoves those who appreciate my position to make some protest. I sincerely sympathise with, and can prove that I have clone my limit for, the unemployed, but this latest legislation "bangs Banagher" whatever that means.—l am, etc., ■ K. OS_E.Y