Overseas Funds Tighter

Press, Volume CVI, Issue 31088, 17 June 1966, Page 1

Overseas Funds Tighter

(Parliamentary Reporter) WELLINGTON, June 16. More controls over overseas funds, and on borrowing in New Zealand by subsidiaries and branches of overseas companies, were outlined in the Budget bv the Minister of Finance (Mr Lake). “New Zealanders will no longer be able to sell overseas securities or currencies for New Zealand currency or other assets in New Zealand,” he said. “Consequently, a premium in New Zealand currency on overseas funds and securities will no longer be if', legally available. I

i “Holders of these funds i will be free to dispose of them overseas and use the proceeds as they wish,” Mr Lake said. “Should they require the money in New Zealand, it will have to be brought back to this country through the banking system. “The amount of New Zealand notes which travellers may take with them will be limited to £5 in all cases, compared with the present limits of £l5 for the United Kingdom and £7 for other destinations. “Subject to certain transitional arrangements, the import of banknotes into New Zealand will be prohibited, with the exception of up to £5 for travellers. “The Reserve Bank will be empowered to declare specified accounts in New Zealand

of non-residents to be controlled accounts, and thereafter to supervise transactions in them.” Mr Lake said that at present, control over capital issues applied to overseas companies wishing to start business in New Zealand, and to borrowing overseas by New Zealand companies. The Government had decided to extend the Capital Issues Overseas Regulations to borrowing in New Zealand by subsidiaries and branches of overseas companies. The amendment to the regulations would take effect tomorrow.

“This step is considered necessary to avoid pressure on the New Zealand capital market as a consequence of the action being taken by the the United States and Britain,” said Mr Lake.