Bonds closed
Wellington reporter
The present issue of infla-tion-proof bonds closed at midnight last night. The Minister of Finance, Mr Douglas, announced the decision just before presenting his first Budget. He said the bonds had been introduced in 1977 by the former National Government to fulfil an election pledge to protect a nest-egg for small savers, but they had instead been used to fund the fiscal deficit.
The inflation protection had been “a convenient means of hiding the high effective interest rates being paid,” Mr Douglas said, and had profited the rich most.
They had also been poorly targeted, as the redemption provisions were not available to large groups of the population. Mr Douglas said that with the introduction of “a credible programme of Government stock-tendering as the cornerstone of a sound monetary policy, there was no need to pay such high rates of interest.”
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/CHP19841109.2.8
Bibliographic details
Press, 9 November 1984, Page 1
Word Count
145Bonds closed Press, 9 November 1984, Page 1
Using This Item
Stuff Ltd is the copyright owner for the Press. You can reproduce in-copyright material from this newspaper for non-commercial use under a Creative Commons BY-NC-SA 3.0 New Zealand licence. This newspaper is not available for commercial use without the consent of Stuff Ltd. For advice on reproduction of out-of-copyright material from this newspaper, please refer to the Copyright guide.
Copyright in all Footrot Flats cartoons is owned by Diogenes Designs Ltd. The National Library has been granted permission to digitise these cartoons and make them available online as part of this digitised version of the Press. You can search, browse, and print Footrot Flats cartoons for research and personal study only. Permission must be obtained from Diogenes Designs Ltd for any other use.
Acknowledgements
This newspaper was digitised in partnership with Christchurch City Libraries.
Log in