FINANCE COMPANIES “FRUSTRATED”

Press, Volume CVI, Issue 31344, 14 April 1967, Page 16

FINANCE COMPANIES “FRUSTRATED”

Finance companies, as an industry, have been unduly discriminated against by the Government’s capital issues regulations, says Mr H. J. Wright chairman of Associated Group Securities, Ltd., Auckland.

In his annual report which accompanies the balance-sheet for the latest year and the prospectus for a new debenture issue, Mr Wright says

“this is a frustrating affair for us.” “Certain theorists in Wellington persist in classifying all finance company activities as inflationary and their views largely influence the course of action which, from time to time, the Government takes. “We do not agree that the provision of finance for such purposes as farm tractors and implements, top dressing aircraft, trucks for the logging and timber industry, fishing boats, livestock transportation units and certain industrial plant, is inflationary. Furthermore, the categories of lending previously mentioned by no means constitute an exhaustive list of noninflationary operations, says Mr Wright. Primary Industry “On the contrary, these activities have materially assisted primary industry and have contributed towards the export drive. “Through the N.Z. Finance Houses’ Association, steps are being taken to bring this point forcefully to the notice of the Government in an attempt to alleviate the present anomalous situation,” he says.