RECEIVERSHIP ATTACKED

Press, Volume CXIV, Issue 33538, 20 May 1974, Page 2

RECEIVERSHIP ATTACKED

, (AZ Press Association) AUCKLAND, May 19. It was high time that New Zealand firms such as Matai Industries, Torro International and Precision Packagers, which had been put into receivership on the basis of trifling overdrafts created out of thin air by overseas-owned trading banks, tested the legality of such actions, said the Social Credit leader (Mr B. C. Beetham) yesterday. “Without making any excuses for these firms, the fact remains that something is radically wrong with a system which gives ultimate control over their fate to private and overseas-owned financial institutions which create their debts out of absolutely

nothing,” he told the league’s) conference. Something was wrong t when that right rested, according to a sound interpretation of the law, with , ’’ the House of Representatives Cl alone. I, It was small wonder that B Mr T. E. Skinner, president] of the Federation of Labour.) s had begun to lecture the) S Labour Party on the point, r Mr Beetham said. “We con-) . gratulate Mr Skinner on his; recent remarks and share his) e amazement that any Govern- '■ ment can attempt to tackle t the monster of inflation with-, . out tackling the trading • banks.” SUPER. SCHEME :- Social Credit opposed the e, Government superannuation) scheme, and would repeal it, I , .said the league’s deputy; ’■(leader (Mr L. W. Hunter). >-) The scheme would be un-i e; fair to widows, mothers who ilihad not worked, Maoris bee ’cause of their lower life ex-1 yjpectancy, immigrants, volun-i

Iteer social workers, and all families who were indirectly) taxed to fund the scheme through higher prices. Inflation, monopolies and distribution of Manapouri’s) power were other issues Mr) Hunter said Social Credit was) concerned about. An inflation rate of 15 per ’cent compounding itself until the year 2000 would lift prices 38 times from what) ithey were today. DANGER SEEN The root cause of inflation experienced today was the manner by which Labour had encouraged the private crea-i tion of credit for profit, Mr Hunter said. The only way people could ikeep their rate of income, above the inflation rate was) Ito organise themselves into! militant pressure groups, he] said. This was a potentially dangerous social situation where dictators, of both Right land Left, could threaten the)

power of elected government and destroy democracy in New Zealand. Social Credit opposed the I sale of Manapouri’s power to Comalco “for a mere pittance ;and the small amount of overseas funds,” Mr Hunter said. STUDY TRIP The conference decided that Mr G. Thew, the league’s spokesman on public works, ) local government and civil defence, should travel to eight countries overseas for four months and a half to collect material for new policies. I He will visit Europe and (North America to gather information on worker participation in management, profit--sharing schemes, training of -the disabled or displaced, de'(Velopments in housing construction and subdivision design, and prison reform. Mr Thew is a member of a new Ifi member “shadow Cabinet” selected at the con- ! 1 ference.