CONTROLS ON CAPITAL

Press, Volume XCIX, Issue 29250, 7 July 1960, Page 14

CONTROLS ON CAPITAL

National Policy Attacked (From Our Parliamentary Reporter) WELLINGTON, July 6. The Minister of Industries and Commerce tonight attacked National Party policy to abolish capital issues control. Speaking in the Address-ln-Reply debate in the House of Representatives he said: “Only the hire-purchase firms are interested In removal of capital issues control. I believe there is some ease for the removal of the present £lO,OOO limit on capital creation, but those who would suffer most if capital issues control is abolished are farmers and manufacturers of this country. There would be an immediate attraction of capital into hire-pur-chase firms. “In the last two years and a half, capital issues of £lO,OOO or more produced a £73 million investment in manufacturing industries. “Does this happen when there are so many Government restrictions that industry is scared?" he asked. Import control had encouraged rather than hampered industry. Even the Leader of the Opposition (Mr Holyoake) admitted that he would have to retain some measure of Import Control. Mr Holloway denied that any industry had been directed to the South Island. “We have never done that and we do not intend to.” he said. “On. occasions I try to use my persuasive powers—which are not very great apparently—to persuade this. And. nevertheless, some industry is going there.”