MORE CONTROLS ON CAPITAL

Press, Volume XCI, Issue 27675, 3 June 1955, Page 14

MORE CONTROLS ON CAPITAL

POLICY “RECEIVED WITH CONCERN” ASSOCIATED CHAMBERS’ CRITICISM (New Zealand Press Association) WELLINGTON, June 2. “The announcement by the Minister of Finance (Mr J. T. Watts) that building and capital issues controls are to be tightened has been received with concern,” said Mr L. N. Ross, president of the Associated Chambers of Commerce of New Zealand, in a statement issued today. “These are artificial controls winch nave no merit in themselves, and are i.ndesirable because, they arise from other factors which are inflationary in character. They are controls which deal with results instead of causes. “One of the causes is that money is being treated too cheaply, resulting in too heavy pressure on available capital resources,’’ said Mr Ross. “The recent annual conference of the Associated Chambers of Commerce called on the Government to adjust interest rates more in conformity with market conditions, and to remove control of capital issues in respect of sums under £lOO,OOO, pending the complete removal of capital issues control. “The present move by the Government is therefore certainly not in accord with commercial opinion, but is going in the opposite direction. “As regards building controls. Industry and commerce are bound to suffer < ncp again. Although the Local; Government Loans Board is to be asked to keep local body expenditure in hand, the board appears to possess no directive authority. The State determines that its own and local body works shall have priority, and industry and commerce come in on what is left,” said Mr Ross.