THE HOUSING PROBLEM

Waikato Times, Volume 119, Issue 19899, 30 May 1936, Page 6

THE HOUSING PROBLEM

There is a. shortage of houses in New Zealand, and few would deny that it is in the national interests that as many people as possible should own their own homes. Probably there is no country in the Empire where there are so many owner—occupiers, in proportion to the total number of dwellings, as there are in New Zealand, and that is the result of the meesure of assistance that. has been afi'orded by the State. The prolonged depression reduced building operations drastically and that did more than anything else to create the shortage that exists to-day. But another factor was the treat-l ment accorded those who had properties to let. They received small consideration during the period of enforced adjustment and naturally this avenue of investment was studiously avoided. The Labour Government assumed ofiice at n time when conditions were improving and the demand for houses was heavier than ever, so that the problem had to be tackled.

As was the case in the Bills dealing with finance, trade and transport, the Government intends to take fur-reaching powers, and it is not re—assuring to find the Minister of Finance stating that it will be worth while to continue a policy that, on his own admission, has “occasioned much of the losses of the Department.” That is a confession of lack of constructive ability, and it is to be hoped that the Government will find a more practical policy. The pressure would be eased at once if the authorities gave precedence to people who have been preparing to secure a home of their own. Some have a suitable section of land and have saved a little money. They would have an equity in the property that would provide a good margin for any advance, and each house built in this way would make another house available for rental. And the experience of the past five years has proved that where the owners have an equity they are good clients of the Advances Office. It is the man who has little financial interest in :1 property who promptly surrenders it when times are bud, and the Office has some thousands of houses on its hands to-day because of that fact.

If the State is to avoid heavy capital losses there must be some selective system in operation, but there are ways by which a man could increase his equity other than by paying cash. There have been cases where men have made an equity by doing work on their places, such as laying down permanent paths, fencing, and otherwise adding to the value of the security. Any plan that promises to work smoothly and economically should be examined before the new Corporation is instructed to advance the full cost of a dwelling.