“Saving An Investment In N.Z.”

Press, Volume CIII, Issue 30447, 22 May 1964, Page 9

“Saving An Investment In N.Z.”

During Savings Week this year, between October 5 and 10, it was hoped to promote a better understanding of the fact that savings were an investment in New Zealand, said the chairman of the New Zealand Savings Committee (Mr C. A. McFarlane) yesterday. “No better use can be made of personal funds, whether as savings or as actual investment, than by contributing them toward capital development, and the committee hopes that all New Zealanders will become investors in the progress of their country.

“Generally speaking, New Zealanders are saving well but over-all they are not saving as much as they could. The committee is pleased with the progress made last year. It was not to be expected that a maximum result would be obtained in the three years the committee has been at work, for there was much leeway to be made up, but the trend since 1961 has shown a gathering momentum and last year some records were broken.

“Taking the only up-to-date figures which are available, those of the Post Office Savings Bank and the Associated Trustee Savings Banks of New Zealand, we find that a most encouraging advance has been made. The excess of deposits over withdrawals for the year In the Post Office Savings Bank was £19,760,837 and with interest added this increased depositors’ balances during the year by £29,158,375. It also brought the total amount deposited in the Post Office Savings Bank to more than £412,000,000 which is the highest ever recorded, “In the same period depositors’ balances in the Associated Trustee Savings Banks increased by

£17,147,727, and the total amount deposited in these banks reached nine figures for the first time, the amount being £109,106,509. Thus it can be seen that in these two savings organisations alone, small savings, plus the interest earned by depositors, increased by more than £37,000,000. “Though contractual savings organisations cannot supply such up-to-date figures, it is clear that they have had a good year. “Growing Awareness”

“These results confirm the committee’s belief that there is a growing awareness of the economic facts of life, but there are still many people who do not yet realise that the necessity to save some part of their income is. a factor which will have a distinct bearing on their own prosperity and the prosperity of the country in years to come.

“There are still too many people leaning heavily on the belief that age benefit or universal superannuation alone will provide for them in their old age. The fact is that these benefits are a shield against hardship but should not undermine the initiative of people who plan to maintain a comfortable standard of living in later life. The enjoyment of the evening of our lives still depends on personal efforts made to provide for retirement.

“Our survey indicated that in all age groups there are some who do not plan ahead. These people represent the hard core of the committee’s problem in increasing savings, but for two-thirds of the country’s income earners it is a question of persuading them to save more.

“These are people who realise, to a greater or lesser degree, that personal saving

should be part of our way of life, and some of them are saving to the limit of their capacity. Others could save more and these we want to encourage to invest more in the future of themselves and their country. “It has been pointed out frequently in recent weeks that we need, higher investment in plant and equipment and public facilities in order to build up. the greater production New Zealand - must achieve to maintain living standards. If all New. Zealanders were deeply conscious of this and were doing something personally to help' we' could, with hard work, achieve our goals. Sayings are invested in capital development,. and the most modest saver, if he is saving regularly, is playing his part “To those who talk of . inflation and the erosion of money, values I would point out that 10 years from now, the man with £5OO saved will still be much better off than he who has saved nothing and, what is more, he has helped to stem inflation. “We promote Savings Week to give opportunity for all who. believe these things to convey this important message in their own way,” said Mr McFarlane.