Housing Progress

Waikato Times, Volume 124, Issue 20820, 2 June 1939, Page 8

Housing Progress

REVIEW BY THE MINISTER “ALL-TIME RECORD” THIS YEAR “INHERITED HOUSE SHORTAGE” “In the Waikato Times of May 26 a leader appears which is most unfair to the Ministry of Housing and which does not convey an accurate impression of my attitude to the shortage of housing that now exists in Te A warn utu,” writes the Hon. H. T. Armstrong, Minister in charge of State Housing. “I am reported as having said that the need was greater elsewhere but that the representations made for additional housing would receive serious consideration. This statement is correct, but what was not reported was the fact that the department has failed to build a far greater number of houses only because of failure on the part of the Te Awamutu building trade to tender satisfactorily for jobs advertised. “I am in no way blaming the trade for this; it has just happened that the building trade in Te Awamutu has had enough building on hand to employ every idle craftsman. If local builders are fully occupied and cannot tender satisfactorily, then the department canDct be blamed if it is unable to transfer builders and building labour from other centres where there is a still greater shortage. Loans from State “What the Waikato Times does fail to state is that the shortage of housing was inherited from past Governments. The building industry was practically ruined by the deflationary policy pursued from 1931 until Labour came into office. Loans granted by the State Advances Department for the purpose of erecting houses for the year ending March, 1931, were 1947, and the amount £1,470,070. After 1931, loans granted fell away as follows :

“It will be noticed that only 12 loans, averaging about £275 a house, were advanced by the State Advances Department for the year ending March, 1934, and that at a time when the building industry was in exceedingly distressed conditions, with thousands of craftsmen on the unemployed roll and with tile number of building apprentices falling away severely. “In 1928 registered building apprentices numbered 3333. If building had remained active and if apprentices had been registered at a rate calculated to maintain 3333 as a constant figure during the depression years, what a difference would have occurred. On the 3333 baste, I append a table showing the total number of apprentices registered and the shortage in each year from 1931 to 1935: —

8222 8448 Lack of Craftsmen “It will be noticed that when the Labour Government took office we were short of 8,443 skilled craftsmen, and a shortage of such dimensions could not be overtaken in a few months. When I say that in addition to the building apprentices registered as at the end of March, 1936, 2,624 new building apprenticeships had been legistered fpr the year ending March, 1939, you will see that not only is Labour giving great stimulus to the building industry but the the number o r men being trained is larger than ever before. “In addition to those being trained, the Government has arranged directly for the importation of 600 building craftsmen, and some hundreds of others have arrived on their own initiative. It can be seen, therefore, that substantial progress toward overtaking the shortage by increasing the labour available has been made. “Your leader also wonders whether lack of available finance has anything to do with the building shortage. For the three years of Labour Government, the following figures set out the advances made for the purpose of private buildings:— No. Amount 31/3/37 1120 £789,990 31/3/38 997 824,554 31/3/39 2123 2,062,275 “These figures compare more than favourably with the pitiable showing made by our predecessors. It is obvious from the figures, if facts and not political prejudice are the determining factor, that the Government has given great encouragement to private building. Private Building “ That the Government has given great encouragement to private building through the Department of Housing Construction is obvious. With very few exceptions, all our contracts are being carried to successful completion by private contracts. .No fewer than 108 firms were engaged at May 19 last. It is not true to suggest in any way, despite the shortage of skilled labour inherited by the Labour Government, that the Labour Government is not accelerating tremendously the output of houses. “ The peak permit year in New Zealand was 1927, and I quote the building permits issued from 1927 until the present day:— Year ending: March 19 27 7179 1928 5590 1929 5212 1930 5747 1931 3463 1932 1555 1933 1496 1934 2019 1935 2892 1936 4140 1937 4555 1938 6043 | “When it is considered that the i building trade was suspended during the depression years, that no men were trained, and that the amount of building accomplished can only expand each year with the reinforcement of the building army, the Labour Government is entitled to credit for its achievement. The 1938 figure is one of the highest on record. 7 179 in 1927 being Ihe highest. Building permits fur the year ending March, 1939, are 6304 for the, larger cities alone, and when to this figure are added the building permits for other than the larger cities, an all-time New Zealand I record will he attained. This figure jwitl be available in the course of a lew I weeks. j “As the army of building craftsmen ift *iki£d to, Pi'OdUCUOB c&n i**

increased, but houses can only be built by trained craftsmen ai.d organisations. Of course the good conditions made possible by the Labour Government have increased the difficulty of housing the people. During the depression years people lived two and three families in a house. To-day, people want a house of their own. Last year, under Labour, there were 3300 more marriages than in 1935, 3200 more births than in 1935, 2655 excess arrivals as against 2 002 excess departures in 1935. Good economic conditions have created a desire for people to establish homes and to come to New Zealand in search of opportunity. Intense Demand Created “In addition to house-building, the 'tremendous programme of public | building engaged in by Government j departments and the great spurt given to the building of factories by the Labour Party’s policy of industrial expansion. have created intense demand for available building craftsmen. This year's figures for building will easily ■reach an all-time New Zealand peak. “On the evidence, then, we started off with fewer trained men than have existed at any time in the past 2 0 years: we have brought about a set of altered circumstances in which more men are being trained as building craftsmen than ever before: we have advanced loans to the private housebuilder in numbers and in amounts far in excess of the numbers and amounts advanced by our predecessors; we have established a Housing Department which at May 19. 1939, had advertised 7149 houses and which hopes jlo have advertised 10,000 houses be- : fore the end of the year: we have steadily expanded all building activity until it has reached an all-time New Zealand peak, and this year’s figures for house-building in New Zealand will set a new record. And Hie movement is still upward. “In addition to all this, we say to Ihe Waikato Times that we are prepared at any moment to negotiate a eonitract with any unemployed builder or jto place any unemployed craftsmen j with a builder, the department insistjing, of course, that the price paid for any job shall bear relationship to prices paid in other parts of New Zealand and that the work shall be of | high mvaliUr.”

lows: — No. Amount 31.3.32 357 £223,630 31.3.33 96 71,220 31.3.34 12 3,375 31.3.35 185 106,895 31.3.36 415 241,327

Total No. Registered Shortage 1931 .... 2791 512 1932 .... 2033 1300 1933 .... 1593 1740 1934 1 100 2233 1935 .... 705 2628 8222 8443