Co-operating On Savings

Press, Volume CVI, Issue 31139, 16 August 1966, Page 3

Co-operating On Savings

(New Zealand Press Association I

WELLINGTON, August 15.

The Minister of Finance (Mr Lake) tonight emphasised that there was a need for continuing and increasing co-operation between the Government and the non-banking financial institutions.

In a statement, Mr Lake said of his remarks at Palmerston North: “1 did not refer directly to Government borrowing from non-banking financial institutions, although, of course, it would be correct to assume that this would be one of the numerous aspects incidental to the subject about which I was speaking.” Working Together

The Minister said by increasing co-operation between the Government and the nonbanking financial institutions they could work together to increase the people’s savings; to ensure that these savings were invested to the best advantage both of the owner of the savings and of the country as a whole: to avoid situations where a small change in the volume of savings and direction of investment could have large detrimental effects on internal demand and the supply of overseas exchange.

Mr Lake said: “The Government has already received excellent voluntary co-operation from non-banking financial institutions in the operation of current <*redit policy. Because of this co-operation there has

been no need for coercive measures or for a high taxation policy. “Such policies could harm not only the economy but the financial institutions themselves. “This is why the Government welcomes and acknowledges the policy of co-opera-tion. We believe that it will continue to be successful,” he said.