STRATFORD BOROUGH

Taranaki Central Press, Volume IV, Issue 361, 16 February 1937, Page 5

STRATFORD BOROUGH

HOUSING SCHEME.

Labour Party Deputation To Council. Two separate housing schemes were placed before the Stratford Borough Council last night by a deputation from the Stratford branch of the Labour Party, comprised of Messrs. S. Sinclair, C. Jackson, and A. E. Marwick. The Council decided to refer the proposals to the Finance Committee, and opportunity will be afforded the deputation of amplifying their schemes when the committee meets.

Scheme No. 1,

Two schemes were submitted to the Council. Scheme No. 1 provided for the erection of 20 houses by the Council on sections owned by it in the borough. Tt was estimated that the cost of 10 dwellings, each of four rooms and conveniences, would approximate £5200. An additional ten houses, each of five rooms and. conveniences, would cost £6500. To finance the erection, the Council could borrow, say £12,000 from the Government at 3 per cent., with a sinking fund of 2 per cent., for a term of, say, 20 years. The rental per annum for the first ten houses at 15/- per week each would amount to £416, while the rental from the 5-ropmed dwellings, at £1 per week each, would amount to £520, a total rental revenue of £936. In addition, the Council would benefit from the profits on the sale of electricity, water, etc., as well as providing social benefits to the community. At the end of the 20-year term the Council would own an asset of 20 unencumbered houses.

The expenditure on the scheme would not be excessive. Interest and sinking fund on the £12,000 borrowed at 5 per cent, would entail £6OO, leaving a balance of £336 per annum to provide for administration, maintenance and rental losses. '

Scheme No. 2.

The second scheme submitted provided that the Council should offer to sell to the Government, at a price to be fixed by valuation, 20 sections owned by it. The Council should administer the scheme on behalf of the Government, ownership of the houses to be vested in the State. The Government could then build 20 houses at an approximate cost of £12,000, as provided in Scheme No. 1. Here, too, the Council would benefit from additional rates, water chafges, electricity, etc., as well as by the social benefits which would accrue to the community]

Speakers’ Views.

Mr. Sinclair said the housing shortage in Stratford was common to the town and other municipalities. It was a very real problem and one that should be dealt with without delay. He realised that in the past the Council’s experience of providing houses had not been a very happy one, but probably they would be able to benefit by that experience. Mr. Jackson said he was a member of the Council when houses had been built. It had proved a disastrous scheme, but he could not see any reason why the first-mentioned scheme should not be adopted. There was room for another 1000 people, and one reason why there was not a larger number of people was the shortage of houses. The proposed new houses would readily be occupied by civil servants and the rent would be assured. Mr. Marwick dealt with the financial aspect of the first-mentioned scheme and showed that a surplus of revenue

was assured. The Mayor, Mr. J. W. McMillan, promised the deputation that the matter would be referred to the Finance Committee for a report, and thanked the members for attending.