State Houses for Wellington

Manawatu Times, Volume 62, Issue 25, 30 January 1937, Page 5

State Houses for Wellington

WELLINGTON, Last Night. The first series of tenders in connection with the Government’s housing proposals in Wellington were announced to-day by the Prime Minister (the Rt. Hon. M. J. Savage). The successful tenderer for the supply of joinery was the Fletcher Construction Co., Ltd., whose tender for joinery would show a saving on the nearest unsuccessful tender of about £5 per house. The successful contractor has to pay a rent of £3OOO per annum, which includes interest plus depreciation, such ns would liquidate the cost of the Government factory in a few years, and in addition has to pay the ordinary income tax on his profit. The contract also provided for the maintenance in good working order of the machinery installed by the Government ajfiTT for the right to secure a rebate in the price of joinery should the contractor'* profits exceed a certain figure. For the nineteen separate bousing contracts the total number of tenders received was thirty-live. The successful tenderers for the erection of the various houses were the Fletcher Construction Co., Ltd., and Messrs. Higgins and Arcus. Rentals. “Under tho schedule rate system upon which the houses are being erected, and having regard to the fact that the Department of Housing Construction may adjust tho cost of any items iu the schedules, supplies of which it can secure for contractors at a lower figure, and also owing to the fact that the schedule rate contract gives the Government the right to make additions or reductions to the quantities of materials and work involved in the contracts, it will be some time before the exact figure of the contracts can be stated,” said Mr Savage. “There is, however, no doubt that the rents to be charged for the houses to be built will compare more than favourably with the rentals being asked to-day. “I am convinced that the houses to be built will set a new standard for working-class houses in New Zealand. Wo are building for the nation, and to play into the hands of the jerry-builder would be shortsighted indeed. A house soundly constructed and possessed of Ml the necessary conveniences will be an asset of which the State can be well proud for a long period ahead. The term ‘Government housing’ has tcuded ;to become a term descriptive of a lower grade of housing; the term 'Government housing' in the future should become descriptive of a higher grade of housing.'' Childless Couples Mr. Savage said that an effort would be made within the next month or two to incorporate in each group of houses a few houses that could be let to childless couples, both old and young, houses containing all conveniences, at a rate within reach of all. The letting of the contracts would be followed shortly by the letting of a smaller contract at Johnsonville, in which builders would be allowed to tender for any of a small group of houses, from one house upward. “If any single builder/' said the Prime Minister, “could fill in one of the schedules for tho construction of a house at a rate that showed a substantial savring on any of the schedules deposited up to the present by one of the successful contractors, a section would be found for that builder, provided, of course, he entered into such arrangements as would ensure that he would complete the contract for the total price quoted.” It was to be hoped that the successful contractors would immediately proceed with their programme of construction. “The policy of the Govern ment is to let further contracts ai necessary, and it is anticipated tha‘ the work so provided will ensure cor tinuous employment for building labour in Wellington for a long tim* ahead,” concluded the Prime Minister.