Call For Review Of Mortgage Rate

Press, Volume CII, Issue 30147, 3 June 1963, Page 8

Call For Review Of Mortgage Rate

(New Zealand Prese Association)

WELLINGTON, June 2. A clause should be introduced into all future 3 per cent mortgages granted by the State Advances Corporation that the rate of interest would be subject to review when the borrower's income reached a level at which he could afford to pay the normal rate of interest charged by the State Advances Corporation. This suggestion has been made in a pre-Budget report prepared by the taxation and financial committee of Wellington Chamber of Commerce. The report was adopted at • meeting of the chamber’s council last week. It also suggested a review of State house rentals for all future lettings to ensure that tenants would pay rentals closer to the open market rate when the family income exceeded a reasonable minimum. The committee made these suggestions: That there should at all times be available an authoritative statement of longterm economic plans. That the Budget should be introduced earlier each year and, if changing conditions make it necessary, supplementary economic legislation should be introduced before Christmas in any such yvjar.

That encouragement of savings should be strongly maintained and that an internal loan should be floated as soon as possible. That the Government should give a lead to personal savings by restricting its

own expenditure and examining all items for waste and inefficiency. That there should be no additional Social Security benefits for the time being, except for special cases of distress. That the Government should consider transference of a substantial portion of the tax burden from direct to indirect sources.

In this connexion, the Government is urged to consider an increase in the wife exemption and a more gradual increase in rates of personal tax. To provide revenue to meet thoee concessions, it is

recommended that increases be made in selected indirect taxes or that food subsidies be abolished.

The report recommends that the Consumer Price Index be amended to show the effect of food subsidies and sales tax on prices. Submitting the report, the convener of the committee (Mr H. J. von Dadelszen) said the committee believed that the economic situation was one of cautious optimism, but the aim should be to maintain the present relative stability and not over-stimulate the economy by inflationary measures.

IT Is not a question of your ability to stand the cost of advertisements—but being able to survive without it The thing one has to consider is not only en extension ol your business but of holding what you already have. Advertising not only does not increase the cost at the advertised article, but. on the contrary, makes economies possible that benefit consumers