Auric lowers rate after P.M.’s call

Press, 14 March 1984, Page 27

Auric lowers rate after P.M.’s call

PA Wellington Auric Corporation, the Auckland finance firm that told the Prime Minister, Sir Robert Muldoon, it would not lower its interest rates in line with his wish has now cut them to 11 per cent. Auric, though not a member of the Finance Houses Association, would follow association guidelines, said the company’s financial controller, Mr Richard Laird, yesterday. Sir Robert said on Sunday that Auric had sent him a letter saying it would not lower its interest rates to

his suggested level. At a press conference on Monday, Sir Robert said: “I rang them this morning and told them it was not acceptable. I told them to go and tell their chairman.” » When asked yesterday why Auric had lowered its rates, Mr Laird replied: “That’s fairly obvious.” He said Auric and Sir Robert had had “numerous communications” on Monday. Rates were up to 13 per cent, though these were lowered to 12 per cent last week, he said. The new rates will come into effect at the end of this week. Auric is jointly owned by

Ceramco, Ltd, and Repco Corporation NZ, Ltd. The Finance Houses Association chairman, Mr John Wells, said he spoke to Auric’s chairman, Mr Thomas Clark, on Monday. “I wanted to find out what they said (in the letter to Sir Robert) and put the view of the association,” said Mr Wells. The likely effects of Auric’s actions, considering Sir Robert’s “way of thinking,” had to be pointed out, he said. The association met Sir Robert yesterday after an invitation from him on Monday.