CHEAP HOUSES FOR THE PEOPLE.

Hokitika Guardian, 14 November 1919, Page 1

CHEAP HOUSES FOR THE PEOPLE.

SIR JOSEPH WARD’S SCHEME

(Extract from ‘:N.Z. Times.”)

Sir Joseph Ward, speaking in the House of Representatives on Oct. 14th., said that owing to war causes and the investment of tlie public in war undertakings money had been diverted from the usual channels and that had had a good deal to do with the scarcity of houses. If tlie money was lent at 6 per cent, the weekly payments would work out thus:—

On a £750 house, about 14s 7d

On an £BSO house, over 16s Od

He believed that these weekly payments were too high. He proposed to .show that wo should provide these houses at about 10s 6d a week. The majority of wage-earners were not getting more than about 10s 6d a day, and ono day’s wages was enough to lay out for this purpose. He reminded mem-

that from the Advance to Settlors Department there had been a net profit of about £950,000, and over £21,000,000 had been supplied to settlers. The Advance to Workers’ Department had made a net profit of about £92,000. He would . provide the money for these houses at 31 per cent., with a sinking fund, and would make a profit and not a loss on it. He would not do it by borrowing in tho ordinary way. Ho would provide it all from the Post Office Savings Bank. Depositors received from the Post Office Savings Bank 3;i per cent, for amounts up to £3OO, 3 per cent, for amounts rip to £IOOO, and nothing for amounts over £IOOO. During the last ten years the amount of savings hank funds invested amounted to over £19,000,000. No question could be raised, as to the getting of the money. There was an average excess of £2,000,000 a year, so there could he no question of ttie money being available from that source. He proposed a sinking fund in connection with this scheme. He proposed there were 6000 homes for workers needed. By workers ho meant all classes of people with small means. The repayment period suggested in the bill was too short. Thirtytwo years was not long enough; he would make it 60 years. j Mr. Payne: Hear, hear.

Sir Joseph Ward added that at Jpor cent, the sinking fund would provide for repayment of a loan at 3 per cent, in 66 years at 4 per cent, in 56 to 57 years, at 5 per cent, in 49 to 50 years/ Generally speaking, he urged that the houses should he built of concrete; although, in cases where rapid construction was needed, wood might be used. A rent of 10s 6d a week meant £29 6s a year, and upon a building costing £BOO, the limit under the hill, that amount at 3j per cent, would he £3l 10s a year. That was a very small difference. A one per cent, concession for the first ton years was now allowed to local bodies, rind \ per cent, for the next ten years, under the Advances to Local Bodies Act, and he did not see, therefore, why a small concession should not he allowed to workers in respect of their homes. People earning under, £3OO a year should be dealt with, and ho thought that a profit should not be made on the homes of the people. He worked out what it meant for a house costing £BOO on tlm basis now suggested by the Reform Government, ’ and it amounted to 16s 5d a week, an amount much too high for the, average worker.