RETENTION OF C.I.C. CRITICISED

Press, Volume CI, Issue 29851, 18 June 1962, Page 16

RETENTION OF C.I.C. CRITICISED

(New Zealand Press Association)

WELLINGTON, June 15.

The Capital Issues Committee had added to the many difficulties which the company, in common with other sectors of the community, had to cope, said the chairman of the United Dominion Corporation < South Pacific). Ltd (Mr A. D Park), in the annual report to shareholders released today The policy of the committee was. in the opinion of the company, in various respects. contradictory. he added. Mr Park said that tw-q acts affecting finance companies, the National Expenditure Adjustment Act. 1932, and the Finance Emergency Regulations. 1940. No 2. were still in force as if the emergency conditions i under which they were in;troduced still existed i The Finance Emergency Regulations allowed anyone to form any or as many finance companies within the 10.000 free limit as he liked and to raise additional funds within these limits every year. This possibility continued to be made use of as before. Large enterprises with diversified activities, even if they included hire-pur-chase trading. received approval to raise funds from the Capital Issues Committee under its "general consent" Under both headings, therefore, the policy of the committee, intended to restrict finance companies and hire-purchase trading,

was defeated and the committee no longer achieved its ends. Yet it continued to restrict the activities of oldestablished finance companies The inevitable result was discrimination against oldestablished finance companies. and thereby also against the small retailer, distributor. and manufacturer who depended on the facilities of finance companies for the maintenance or development of their business.