CONSTRUCTION COSTS

Hawke's Bay Herald-Tribune, Issue 14, 1 February 1937, Page 7

CONSTRUCTION COSTS

—Press Aasocitttion.X

Rentals And The State Housing Scheme

(By Telegraph

AUCKLAND, Last Nigkt. It is anticipated that ten'ders will be called for the building of Government houses at Orakei about February 9. This information was given by Mr J. A. Lee, M.P., Parlianientary Under-Secre-tary to the Prime Minister, on Saturday. While the- Orakei tehders were being received, a scheme for the building of houses on the Casey estate ought to be ready for tendering. "Once we start on Orakei there should be no further delays," remarked Mr Lee^ "One thing has been discovered, ' ' he added, ' ' and that is that the cheapest rental" house does not neeessarily mean the cheapest house to construct. It has been • found that houses can be construceted at a very moderate capital expenditure, but these houses- would be more expensive to rent because their life period is exceedingly short and their capital cost has to be reeouped in a very short period. On the contrary a house soundly built gives such an extension to the life period of the house that the rental to be charged is substantially reduced." Mr Lee was not prepared to discuss piices in respect of contracts recently let, but he said priees were sneh that he could state confidently that the rentals of Government houses would be well under the rul'rng rates.