CREDIT CONTROL POLICY

Press, Volume XCII, Issue 27764, 15 September 1955, Page 12

CREDIT CONTROL POLICY

Mr Watts Addresses Accountants

“OVERDRAFTS MUST COME DOWN” • (New Zealand Press Association)

WELLINGTON, September 14. “The over-all picture is not as good as I would like it to be, and it is clear that overdrafts must come down in the next few months.” said the Minister of Finance (Mr J. T. Watts), addressing a luncheon gathering of the Society of Accountants today on the Government’s credit control policy.

“The steps the Government is taking [are in the interests of the country as a whole,* and I ask you for your understanding and sympathetic appreciation.” said Mr Watts.

Great expansion, was needed in ’New Zealand in the next 20 to 25 years.of all material resources and production. There was a very great unsatisfied demand for public works of all kinds — i for electricity, hydro, geothermal, and ’ steam: for improved transport facili - ties, both by rail and road: for new I school and university buildings; for i flats and houses; for new commercial 'buildings in the cities, or new factories of new machinery; and for all the products of “this energetic and improving civilisation in which we live.” “All these things are desirable, and many people think them essential,” said Mr Watts. “At the same time, there is only so much manpower and so much overseas exchange, and so much saving to provide for them “ In the last year the notified vacancies for jobs had risen from 12,043 to 14.583. said the Minister. Overdraft Figures Overdrafts at the trading banks of New Zealand had risen from £149.500.000 at the end of June, 1954. to £184.300.000 towards the end. of June. They had risen again bv £4,000.000 to £184,900,000 at the date of the last returns, September 7. “Our net overseas assets have fallen in two months from £103.600.000 to £92.700.000, that is, £11,000,000,” Mr Watts said. “It is still quite a satisfactory figure, but over a 12 months’ period our net overseas assets position has deteriorated by £67,000.000.” In the face of those plain and obstinate facts it was clear that some restraint on credit facilities, in the short run. was absolutely necessary. The Reserve Bank, with the Government’s approval, had been exercising that restraint, and the trading banks were co-operating with the Reserve Bank, he said.