Clamp on P.O. loan money explained

Press, 17 April 1982, Page 3

Clamp on P.O. loan money explained

PA Wellington The Post Office, had not lent any money, except to home ownership account holders, for more than seven weeks and the Government did not know when lending restrictions could be lifted, Parliament was told on Thursday. The Postmaster-General (Mr Talbot) said that a circular to postmasters on February 23 told them not to lend any money by way of overdraft or personal loans. The only exception allowed was in loans raised on home ownership accounts, and even these had to be sent to Wellington for approval. Mr Talbot was replying to Eistions by Dr M. Cullen b„ St Kilda). Mr Talbot did not know when the restriction could be lifted but said he hoped it would not be very long. The restrictions were imposed because the demand for loan finance had continued to exceed the growth in funds available, said Mr -Talbot. The Post Office was run on "very good business corporate lines,” he said.