Denial Credit Curb Affects Building

Press, Volume CVI, Issue 31139, 16 August 1966, Page 9

Denial Credit Curb Affects Building

(New Zealand Press Association)

WELLINGTON, August 15.

The Minister of Housing (Mr Rae) said in Parliament that he could not agree that the building industry was being crippled by the Government’s credit restrictions.

He had been asked to comment on a recent statement by the Timber Merchants’ Federation president (Mr E. W. McKelvey) that “the big drop in permits issued in April and May compared with last year showed clearly how the continued Government credit restriction policy was crippling New Zealand's building industry.” Mr B. P. Mac Donnell (Opp.. Dunedin Central) asked Mr Rae whether the unfavourable trend would continue. Mr Rae said Mr McKelvey’s statement was unduly pessimistic and a continuataion of similar opinions expressed in recent years when timber merchants had enjoyed record tum-overs and record prosperity. He said yesterday a leading timber company had said that its sales for April and May were well above the same months last year. Mr Rae said the extract quoted by Mr Mac Donnell was part of a much larger statement by Mr McKelvey which was a mixture of comments on commercial permits and housing permits and contained a number of inaccuracies. The value of permits for houses and flats for April and

May was the same for this year as for last. “While the number of permits is down, this is too short a period to judge what a full year’s activities will be," said Mr Rae.

“I cannot agree that the building industry is being crippled by the Government’s credit restrictions.”