INTEREST RATES

Press, Volume XCI, Issue 27638, 20 April 1955, Page 14

INTEREST RATES

REVIEW URGED UPON GOVERNMENT ASSOCIATED CHAMBERS’ REPRESENTATIONS (New Zealand Press Association) _ HAMILTON, April 19. Remits dealing with interest rates and investment allowances were discussed at the annual conference of the Associated Chambers of Commerce in Hamilton today. The conference approved the following remit; “That, in view of the inequitable variations in deposit rates fixed by the State, the Government be urged to remove all controls on deposits with trading companies, and adjust other rates more in conformity with market conditions.” Mr E. Q. Neale, (Auckland), who moved the remit, said that deposit rates had, with minor variations, remained unchanged in New Zealand since 1941-42. During this period, the average market rate on New Zealand Government stock had risen by about 30 per cent. Other remits were approved as follows:

“That this conference approves the principle of investment allowances, and recommends to the Government its early application in New Zealand.” “That the Government be urged (1) to give careful consideration to limiting Government and local body internal borrowing to a figure more in keeping with the availability of funds for investment; (2) to borrow, overseas such overseas funds as may be required to finance capital works that will expand our national production; and (3) to encourage the- investment of overseas money in New Zealand for the use of private enterprise.” “That the development of this country by private enterprise is greatly obstructed by the continued operation of a number of controls and restrictions which are unnecessary in the public interest, and that the Government be urged to remove them.” “That this conference is of the opinion that the present state of over-full employment plays a large part in increasing costs, aggravating • inflation, causing the uneconomic use of capital equipment, with poorer Services to the public and detriment to the health of conscientious workers. The conference therefore recommends that the

Government reconsider its immigration policy, examine its public works undertakings, and implement the recommendations of the Board of Trade to ensure that labour is available and employed to the best advantage.”