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of each house in the area of the local authority, and this has not been done in every case. The summary of the figures obtained from the reports of the medical officers of health for 1925, from subsequent correspondence with them, and, in cases where no information has been supplied by the medical officer of health, as estimated by the Board, is therefore put forward with some reserve. It would appear to indicate, however, that at the end of 1925 the number of houses required adequately to meet the needs of Scotland was 118,327. This estimate (which we are inclined to think is an under-estimate) approximates comparatively closely to the estimates of 121,430 and 131,101 compiled in 1917 and 1919 respectively by the Royal Commission and by the local authorities, and supports the general view that thẻ efforts since 1919 have not resulted in any material reduction in the shortage. As already stated, however, the results of the efforts made during 1926 indicate that at last the shortage may be in process of being lessened.

9. Labour Supply.-Though the numbers of houses under construction have, as will be seen, steadily increased during the year, serious deficiencies in the supply of labour have not been reported. The returns received as to the numbers of persons employed on housing schemes refer only to the schemes of local authorities, and the following table is of interest :

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The labour figures include apprentices and labourers as well as craftsmen.

As will be seen, there has been an almost uniform increase in the number of persons employed throughout the year. The highest total recorded was 11,847 (including 2,200 apprentices) in the month of September, the ensuing months shewing slight decreases in sympathy with the fall in the number of houses under construction during these months. That additional employment is afforded by the schemes of local authorities is demonstrated by the fact that while at the end of 1925 the total number of persons employed on schemes by local authorities was

only 6,399, the total at the end of 1926 was 11,586. There are no returns to shew the numbers engaged on houses being erected by private enterprise with State assistance, but as nearly onesixth of the subsidised houses under construction at the end of the year were being built by this agency, it is probable that other 2,000 persons were so employed. This gives an estimated total of 13,500 persons employed on subsidised houses at the close of the year.

As the total number of insured workers in the building trades in Scotland in 1926 is given as 73,690, it might be inferred that the greatly increased contribution of employment given by subsidised housing schemes would be reflected in the rate of unemployment in these trades during the year. This, however, is not so, as the monthly returns furnished by the Ministry of Labour shew that except for December the monthly rate of unemployment during 1926 was uniformly higher than in 1925. Nor can this be ascribed to the industrial dispute, as the rates of unemployment in the months prior to and after this dispute were also uniformly higher than in the corresponding months of 1925. Further, the number of persons engaged on subsidised housing schemes continued to increase throughout the period of the dispute. It has, however, to be borne in mind that the term building trades" on which the Ministry of Labour's unemployment figures are based embraces numerous classes of operatives such as divers, ferro-concrete joiners, steeplejacks, mosaic workers and others who are not employed on housing schemes.

The aspect of the matter that concerns us is that, while the rates of unemployment in the building trades as a whole increased during the year, the rate of completion on local authorities' housing schemes, as pointed out elsewhere, might well be speeded up. This latter rate is of course governed by the capacity of any one trade concerned, and the unemployment statistics shew that the plaster-work trade has been practically employed to its full capacity. From March to October inclusive the rate of unemployment in this trade was uniformly less than 2 per cent., whereas the lowest rate recorded for all occupations in the building trades was 8.9 per cent. Plasterers are therefore the key to the situation, and there is particular satisfaction in recording that the monthly numbers employed on local authorities' schemes mounted steadily until at 31st December they exceeded 700. The average number employed monthly on the above schemes during the year was 550 as compared with 290 in the previous year. Improved organisation and overtime are factors that doubtless account for this attraction of plasterers to house-building.

In the Report for 1925 it was stated that the Scottish Advisory Committee of the Building Industry Committee had reported that among the main causes of delay in the erection of houses was the want of proper organisation in the execution of housing schemes. During the year the Inspectors of the Board have directed their special attention to this point when visiting schemes in process of being carried out, and their reports indicate that

more attention is being paid to this matter, with the result that to a much greater extent than hitherto the various trades follow each other in proper sequence without any delay. Where it appeared that the work was not organised on these lines, the Inspectors directed the attention of the architect and other responsible persons to the need for improvement.

While there has not been any serious complaint as to lack, of labour, there have been complaints from time to time as to the insufficiency of plasterers on various schemes. All reports of shortage of labour were transmitted to the Scottish Advisory Committee of the Building Industry Committee, and by them transmitted to the local building industry committees for attention. Special consideration was given to the situation as regards plasterers, and as a result a circular was issued to local authorities on 13th July, 1926, embodying the following recommendations, made by the above Advisory Committee :

(1) Where there is a shortage of plaster-work labour, the Scottish Board of Health should bring to the notice of local authorities the fact that arrangements have been made for permitting overtime to be worked in this trade, and that in such cases the local building industry committee and the local representatives of the employers and operatives in the plaster-work trade should be consulted;

(2) In cases where there is a shortage of plaster-work labour, local authorities should be informed that, as regards future contracts for plaster-work, local authorities who have already sufficient data in their possession as regards current prices should consult local plaster-work employers' associations and local building industry committees with a view to the production of a scheme for spreading plaster-work contracts over a larger number of contractors, and so expediting the completion of plaster-work on local authorities' housing schemes; and

(3) In areas where the production of houses is being retarded owing to the shortage of plaster-work labour, the work of the provision and erection of breeze partitions should, as regards future schemes, be placed in both the brick-andmason and the plaster-work schedules for local authorities' housing schemes for a period of two years.

10. Building Industry Committee's Scheme for the Augmen-. tation of Apprentices.-As stated in the last Report, it has been the practice, when approving tenders for the erection of houses in areas where a local building industry committee has been set up, to make it a condition of approval that a clause providing for the employment of apprentices in accordance with the Building Industry Committee's scheme for the augmentation of the supply of building trade labour must be embodied in the general conditions of contract. On 5th February, 1926, local authorities who at that date had houses under construction were requested to furnish information as to the number of additional

apprentices engaged by their contractors in order to comply with the apprenticeship clause. The replies received indicate that the additional number of apprentices taken on by contractors for the various building trades is as follows:

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It should be understood that this does not represent the total number of apprentices entering the building trade, but only the number taken on under the special scheme of augmentation referred to in the Report for 1925.

The number of houses in respect of the erection of which the 297 additional apprentices were engaged was 8,681.

In some cases the local authority stated that contractors had already in their employment the proportion of apprentices provided for under the apprenticeship scheme, and that accordingly no additional apprentices had been engaged.

11. Materials.-The industrial dispute had an unfortunate effect on the supply of building materials for subsidised housing schemes, especially in the later stages of the dispute. The progress on many schemes was seriously affected by the shortage in supplies and by delay in transport of such materials as bricks, fire-clay goods, cement and lime. As a consequence prices rose, and contractors reported that they were unable to secure their materials at the prices ruling when they undertook the contracts. Some local authorities in the interests of expedition applied for permission to pay the increases involved, but we refused all such applications, pointing out that the contracts were firm, that if the contractors had not when accepting the contracts made arrangements whereby supplies would be available at the prices on which they based their offers they must be held to have taken the risk of a rise in price, and that accordingly it was for the contractors to meet any loss, just as they would have been entitled to take any profit if the prices of materials had fallen. We also advised local authorities that, as long as supplies were available, contractors were not warranted in holding up the work because the prices of materials had advanced. A deputation was received from the Scottish Building Contractors' Association supporting the claims of housing contractors for a refund of the increased cost of materials, particularly of bricks and cement, due to the industrial situation. The deputation submitted that manufacturers, even where they had contracted to supply materials at a definite price, were refusing to supply unless higher prices were paid, that the estimated increased price per house for bricks and cement alone was £15, and that unless reimbursement were

made there would be no alternative but to suspend housing work for an indefinite period. The deputation further suggested that, while their Association were not prepared to enter upon litigation with the manufacturers, the Government might undertake to bear the expense of a test case in order to establish the obligation resting upon manufacturers where there was a contract for a supply of materials at fixed prices. After careful consideration of these submissions. it was decided that consent could not be given to any increase in contract prices, and that the Government should not be advised to undertake the expense of a test case.

In July the Inter-Departmental Committee appointed in 1923 to survey the prices of building materials issued their fifth interim report, to which was annexed a schedule shewing prices at various centres during May. These prices shewed few fluctuations, but at that time the effects of the industrial dislocation had not asserted themselves. It is understood, however, that the subsequent increase in prices has had the attention of the Committee, and that they are to watch closely the movement of prices in the near future. The Committee recognises that, while by reason of forward commitments of manufacturers some time may elapse before all prices become normal, it is important that adequate reductions should be effected as soon as they become reasonably due. At the close of the year, while supplies of materials to housing schemes were again normal, the prices of some of them had not been reduced.

12. Wages.-Wages in the building trade remained on the old scale throughout the year.

In connection with the Government scheme for the erection of steel houses, questions were raised as to wages to be paid to the workmen employed by the Cardonald Housing Corporation, Ltd. Along with the Ministry of Labour we had several meetings with representatives of the building trade employees on the subject, and thereafter the above Corporation were informed that under present conditions the following rates would be regarded as satisfying the requirements of the Fair Wages Clause in their contract, viz. :

A. In the factory.

To workmen engaged on the manufacture of standardised house parts, a base rate of 1s. 21d. per hour; and B. On the site.

(1) To workmen engaged on foundation work, a base rate not less than the rate commonly paid in the district for similar work;

(2) To workmen engaged on assembly and erection, a base rate of 1s. 31d. per hour, subject to a guarantee that the earnings of not fewer than 10 per cent. of the men will be not less than 1s. 8d. per hour.

13. Tender Prices.-During the year we continued the policy, described in the last Report, of exercising control over the tender prices of housing schemes promoted by local authorities with

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