New national grouping of building societies

Press, 6 May 1981, Page 30

New national grouping of building societies

PA Wellington A new national grouping of building societies. Building Societies Association (N.Z.), Inc., has been formed in Wellington. This replaces the two former national organisations which separately represented the terminating and permanent wings of the industry. The change is the result of legislation passed through Parliament during 1980 and which became effective on April 1, enabling all building societies to offer a new type of investment, a bonus ballot share, and prohibiting fur-

ther sales of. terminating group shares. As a result, a number of former terminating and permanent societies have merged and the new national body has been established. It has a. foundation membership of six major societies but all building societies will shortly be invited to join. There is a total of 33 regis-. tered societies with combined assets of slightly more than $lOOO million. The president of the new body, Mr C. J. Tippins, of Auckland, said yesterday that the change represented

a forward step in the development of building societies in New Zealand. “We believe the industry now has the foundation on which to grow rapidly and strongly and to fulfil government objectives of a growing volume of good-quality, longterm, priyate sector table mortgage finance for residential housing." Mr R. E. Broad, of Dunedin, has been appointed vice-president, and among the seven-member executive are Mr D. G. Church, of Ashburton, and Mr C. Jenkins, of Christchurch.