Broadlands ahead but awaiting Budget

Press, 21 July 1976, Page 20

Broadlands ahead but awaiting Budget

PA Auckland The trading results of Broadlands Dominion Group, Ltd, were ahead in the first three months of the current year, the chairman (Mr A. C. Montgomery) said at the annual meeting. It appeared that this trend would continue, but the state of the economy and the measures taken by the Government to deal with it could affect the company. Unfortunately prospects were not particularly encouraging, because the balance-of-payments deficit was falling only at a slow rate. The inflation rate was still rising and a low level of industrial investment au-gured-ill for future growth. If, in its Budget, the Government sought to deal with the problems primarily by

I cutting-back on its own services, and increasing taxes ' then the demand for Broad- , lands services would tend to : be depressed, Mr Montgom- : ery. . If a tighter monetary pol-

■ icy was adopted interest i rates would rise, and the ■ group could have to ration ' loan-funds. It was clear that the prob- ■ lems faced by. the country would require restraints on all sections of the economy. “This would be painful for wage earners, and shareholders alike,” he said. The revocation of the Interest on Deposit Regu- [ lations had been to the ad- . vantage of Broadlands; the . group was now able to hold ; a more balanced-ledger of borrowings, and this enabled i it to invest moneys for ■ terms that were not prudent. I The Wells Fargo Bank of San Francisco had increased its equity-interest in Broad- ; bank Corporation, from 12.5 per cent to 24 per cent.