More restrictions not expected

Press, Volume CXII, Issue 33096, 11 December 1972, Page 22

More restrictions not expected

(New Zealand Press Association)

AUCKLAND, December 8.

The chairman of Broadlands Dominion Group, Ltd, financier and land-developer (Mr A. C. Montgomery) cannot envisage the present Government taking further measures which would discriminate against finance firms.

Mr Montgomery comments on the change of Government in a report accompanying the group’s prospectus for a ssm registered secured debenture issue.

It has been suggested, he notes, that finance companies may not prosper under the present Labour administration as they have previously.

“Finance companies provide a service demanded by people at all levels of affluence (or otherwise), many of whom are active protagonists of the Government.

“Right now, the economy needs an injection of consumer spending. Finance companies are geared to provide funds for this purpose. “They, of all financial organisations, have dealt with the man in the street.

“They know what money he wants, they know how he wants to repay his obligations, and they, being competitive, meet these needs at an acceptable price to the customer.

“Moreover, the finance industry has worked under fairly stringent controls for years. I cannot envisage the present Government taking further measures which would discriminate adversely against such companies," Mr Montgomery says. It had been intended to seek a basic amount of s4m in the issue, its seventeenth and now, its largest yet. But after checking the market, the directors had decided to seek ssm, with authority to accept over-subscriptions of up to s7m.

are the maximum allowed under present controls and range from 6 per cent for one year to 7} per cent for from six to 15 years. Special five and 10-year reviewable interest stock is available.

For short-term paper, unsecured, rates will vary monthly, starting this month at 4| per cent for call money.

The interest rates offered