RENTS FOR STATE DWELLINGS

Hawke's Bay Herald-Tribune, Issue 110, 26 May 1937, Page 4

RENTS FOR STATE DWELLINGS

a The f'average" rentals to be charged for homds to be built under the Government housing scheme have bees announced by the Acting Prime Mfnfster and will come in for e good deal of discussion from variotis pofnts of view. Most will no doubfc be heard from that of the prospective tenants wfio will haive the rents to pay, Already there^would appear to be nmrintif ings among them of dissatisf aetion at the scale on which these have been cast. They have been in So many respects led by the Government to expect so much for so little, or for nothing at all, that they are naturally dig' appointed at the substantial rentsf that are to be asked fo^ these housee. ^ow these rent# cOmpare with those now ; charged for; like privately owned dwellings iit or Hear the big centres cannot he saiid here, biit the tJilder-Secretary fdr Housing avers that they are substantialjy lower. That, however, can searcely be gaid with respect to towns like Napier, and Hastings, In any event that is only the one aspect of the case. Whafc ooncerns the whole corrimunity as taxpayers U as to whether these rents have been ealdulated on the footing that they will yield a return adequate to eover a reasoiiable rate of ihfer'est oif Oapital Cost, deterioratiOii, repairs, renOvation's, contmually increasing rates, insiirance, breaks in oecupation, and all the other outgoings and losfes which the lafidlotd haS to hear. tfnless they do this, then it is very ObVxOus that the general body of taxpayers will have to make ii^ the deficieiicy. ThuS we may well- find that ivage-earners and sihall farmers throughout the country Will, as tai^ayers, hare to contribute to providing specially convebiient 'aiid comfortable homes for the relatively few city aiid town workers who are fortunate enoiigh to4 becOihe tenantS of« the State. ' In this ve* spect, too, it has to be noted that eten &§ among the tOriants themselves there is to be created sOmething of an ^aristocracy of wealtir/> for manifestly it is only the higher paid men who will he able to afford the higher rents derbanded for, the more desirable homes. ThiS, of course, is quite contrafy to £he Socialist principle of equality and fraternity pfofessed by the Government and is likely to be resented- by the "r&nk and file." ' What therOfdfd is called for is some defiriite aiid dOtailed statement from the Government as to the basis upon whieh these proposed rents have been calculated,, for without that it if impOSSible tO SSf whether they are reasonable Or not. As yet We have not beefl told With anything like preeision even what the actual eost of either sites or ereetion bas been or is tO Be. Nor is A&y indication given as to what length of life if SSSigfied to the Buildings for the piirpOse 6f caldtilating a sinking fund. Rumour has f>iit it 'down at even as long as sixty years. This is Maiiifestly absufd, for |>robably in twenty years the dwellings now beirig or to be ereetedr will- pfobsbly be as much out of date as are iiow those btiilt fOTt'y years ago of very much sounder ntate'iial. Anohter point of conside#able concern is the rate Of interest to be charged on the iidcessary capital, for WhicSh it is understood the Government is drawing upOn a Special accotfnt in the Seseive Bank. UnlesS this is Set at a reasOnable rate as for a Government loan, then it Siinply iheaiis a "f ake' ' by which the eurrency is beirig depfeciafed or, to iise a inofe expressive wOrd, debased. Not only inust it have this effect but, as Mr. Lee himself sugge^ts, it must also mean that the lettable or saleable values of Other dwellings, including those which thrifty workers have botight or briilt for theriisOlves, will be artificially dimiriished. It miist be qtiite easy fOr the Government to dispel all these dOubts. Why riot do SO?