PM Transcripts

P. M. No. 24/ 1961
FUNDS FOR HOUSING
Statement by the Prime Minister the Rt. Hon. R. G. Menzies
The Prime Minister, Mr. Menzies, said today that the
Government had decided on further action, through the
Cormonwealth Savings Bank and through the War Service Homes
Division, which would provide a prompt stimulus to home
building. An increase in the rate of home building would
produce useful consequential effects in the timber, textile and
furnishing industries, as well as those producing other types of
domestic equipment and supplies.
Earlier this year the Reserve Bank had askod the
Savings Banks to increase their rate of lending for housing in
the present quarter, and they were doing this. The Trading Banks
were also currently lending for housing at a higher rate than in
the March quarter. The two member banks of the Commonwealth
Banking Corporation involved in these arrangements the
Commonwealth Trading Bank and the Commonwealth Savings Bank
were playing their full part. It had now been arranged as a
special move for the Commonwalth Savings Bank to expand
substantially its rate of lending for housing during the next
few months. Port of the funds to be made available would be
lent direct to individual borrowers from the Savings Bank, but
a large proportion would be placed through building and housing
societies. Assurances had been received from the building
societies that they are in a position to make quick use of
additional funds.
With regard to Uar Service Homes, the Government would
in the existing circumstances make, for the time being, a
special arranement to eliminate waiting times for new homes.
Details would be announced shortly by the Minister for National
Development, Senator Spooner.
Prior to this decision, applicants for new houses were
required to wait from three to eighteen months according to
the way in which they arranged for their houses to be built.
Under the new arrangement, finance would be promptly available
over the coming months for the building of new War Service
Homes with no waiting tine at al]..
Mr. Menzies said that the Govrnment had, throughout
its term of office, recognised in a practical ' ay the
importance of sustaining home building at a desirable level.
Apart from action taken through the banking system, the total
amount of finance provided through the Commonwealth Budget in
1960-61 for 4ar Service Homes (œ 35 million) under the Housing
Agreement with the States (œ 37 million), and in other ways was
more than œ 80 million. Legislation had been passed in the
latest Session of Parliament to enable a renewal of the
Commuonwealth/ States Housing Agreement.
CANBERRA, 22nd May, 1961.