N.Z. HOUSING SCHEME

Hawke's Bay Herald-Tribune, Issue 87, 29 April 1937, Page 3

N.Z. HOUSING SCHEME

-Pres» Aasociation.)

Builders Approach Labour Ministers EFFECT ON THE TRADE

(Br TeleeraDh-

WELLINGTON, Last Night. The decline in the number of dwellings erected throughout New Zealand since the announcement of the Government 's housing scheme and the problems which faced the buiiding and allied trades and the home builder wero discussed to-day by a xepresentative trade deputation to the acting-Primo Minister,.Hon. P. Fraser, and Mr. J. A. Lee Parliamentary Under-Secretary in _ iCharge of Housing. Members of tho deputation said they were very con•cerned with the amount the trade had fallen off during the last six months. There were a number of factors miti,gating against smooth working between the State and private buiiding enterIprise, and it was suggested the Governiment arrange for more money to be made available for the purpose of buil;ding homes, mainly by making ad•vances np to 85 per cent. instead of to '56 2-3 per cent. only. Builders and allied tradesmen greatly ,lesired the Government to make a ,statement as soon as possible as to iwhether houses erected under the housjing scheme would be made available for irental only or for salo and whether Ithefe was to be a salary bar in connection with the rental. A further request ;was that the Government announce the irentals likely to .be charged. Since the Government made known the new housing scheme there had been a serious falling-off in the number of buiiding permits issued fn the eities and larger towns of the Dominion. This 'Could be attributed only to the fact that capital was shy and what mortgaged money was offering was available only on a very conservative basis. The deputation claimed it was the Government 's intention in the first iplace to make funds available through iState lending channels to permit private persons buiiding how, when and where they liked and it was now considered the time had arrived when something should be done to stem the serious falling-off in the erection of private dwellings. It was also believed that if money was made available to private enterprise at the same rate of interest as charged by the State Housing Department it would stimulate home buiiding. It was suggested a small committee be set up xepresenfing the trades covered by the deputation to confer with Mr. Lee and his officers to find out in what way private enterprise and State enterprise could best serve the public. Mr. Lm said the State Advance* Department was not starved for funds and had plenty of money available for loans for all purposes, but the money involved in the State Housing Department was money of a different kind altogether and for housing only. Ho admitted buiiding costs had risen but at the same time fewer houses were built in New Zealand when costs were low a few years ago than at any other period in its history. Between 1926 and 1937 more than 29,000 buiiding permits had been issued, and during the past year since, loans in excess of 66 2-3 per cent. had been restored, 472 houses had been built, com- . pared with none for the previous year. "In my opinion you builders. could have done a lot more to assist yourselves instead of standing off and. punching my nose. For one thing you could have worked in with us," Mr. Lee said. He said ho wishcd to see a small cooperative contract given to the Wellington Carpenters* Union provided they faced up to the conditions when the Housing Department could again turn its attention to Wellington. He wanted to deposit anything up to 20 plans on the jiounters at the main centres so that builders could quote immediately for jobs offering. "These difficulties may all arise without intent . on anybody's part" said Mr. Fraser. "A statement will be made probably within the next fortnight or three weeks about the rent and cost of these houses. I will also look mto the matters raised concerning the ,State Advances Department. The Gov'ernment neither desires nor wishes to ;cripplo the small builder. We want to give hip a i'air chance. There is no pomt in putting him out of business. If .you builders can show us how, without sacrificing quality, to improve our nouses, you'. will indeed help 'us. ' '