U.D.C. wants higher short-term rate

Press, Volume CXIV, Issue 33610, 12 August 1974, Page 17

U.D.C. wants higher short-term rate

i.Ncir Zealand Press Association') WELLINGTON. A further amendment of the Interest on Deposit Regulations is needed to allow higher interest on short term deposits as well as long term deposits the chairman of U.D.C. Group Holdings, Ltd, said at the annual meeting.

U.D.C. was finding it<] impossible to meet the demands of its clients, . which was unfortunate h because it was essential that]: industry be properly ]i equipped if New Zealand ■ • was to continue its econ- i omic growth. ■ “Although U.D.C. had ibeen reasonably successful] in attracting some of the (long-term money after the change in the regulations in May the consequence had] been a shift from short-term] deposits to long-term deposits, which otherwise (might have been lost to Alternative investments. It: I had not resulted in additional funds for clients. + “It was essential that fur- t ther changes be made to < allow finance companies to 1 i offer higher rates for shorter ( term deposits,” Sir Clifford Plimmer said. . The profit for the three j months to June 30 was ahead of the profit for the ‘ (Comparable period of last, t 'year although the company ' ■ had been experiencing the full effects of higher operating costs, a shortage of; moneys and in- 1 :creased borrowing costs. “As a result of these, factor trading for the remaining ' mine months of the financial ' lyear must be expected to be more difficult. J “While I will not denyjf that trading conditions will |5 be difficult during the next!* ]few months, I refuse to;* believe that New Zealand is 5 heading for a depression of 5 the type which afflicted the o country in the early thirties, r “However, with the cur- * : rent rather severe decline in 3 overseas reserves and the 1 I j

: probability of lower new :] season’s prices for our wool . and other primary produce, : the future does look uncertain, but we have faced similar recessions before and reli covered very strongly,” Sir Clifford Plimmer said.