RESERVE BANK CREDIT

Press, Volume LXXXIX, Issue 27035, 9 May 1953, Page 2

RESERVE BANK CREDIT

GOVERNMENT POLICY ATTACKED STATEMENT BY LEADER OF OPPOSITION / (New Zealand Press Association) . , WELLINGTON, May 8. “In view of the strong denunciation of the use of Reserve Bank credit made time and again by the Prime Minister (Mr Holland) and his colleagues during former years, events over the last few months are worthy of some comment,” said the Leader of the Opposition (Mr Nash), in a statement released today. “Not only has the Government failed to repay all the advances obtained from the bank during the 195253 financial year, but now, In the first month of the present year, a further £3,000,000 has also been borrowed from the bank,” said Mr Nash. “That this money has been obtained so soon after the bulk of the 1952-53 year’s income tax has accrued to the Treasury is a matter which cannot be allowed to pass unnoticed.

“Those individuals who are suffering under the insistent Government pressure to reduce commercial or private trading bank overdrafts can be forgiven if they query the Government’s right to have one policy for itself and another for private and commercial circles,” Mr Nash said. “The position which has arisen demonstrates once again the incompetence of the Government in handling financial and economic matters, and the inconsistency of its statements and practice regarding Reserve Bank credits and inflation,” concluded Mr Nash.