REPORT FROM WELLINGTON

Taupo Times, Volume 19, Issue 98, 17 December 1970, Page 6

REPORT FROM WELLINGTON

The Muldoon forecast of a Government spending cut in the new year is duplicated by the cheerless promise from bankers and financial institutions that money will be harder to borrow in 1971. This is expected to be particularly true in the building industry, which bears the brunt of every credit squeeze in this country. Leaders of the building trade, notably in the home-building field, are aware of a growing constriction already. Although politicians are inclined to draw attention to

the rise in building permits as indicating a healthy condition, it is pointed out that once the permit is obtained, the money is still needed. The position concerning work actually put in hand is nowhere near as healthy — and the gap between loan limits and amount required is widening. On The Ice Of 47 applications by firms for exemption from the price freeze, only two have been granted by the Department of Industries and Commerce. These related to the fees charged by a private hospital, and the cost of an imported chemical. There have been a number of apparent breaches which will have to be investigated, but on the other hand some of the applications have been naive in the extreme. "They must think we all have white beards and red trousers round here," said an unofficial spokesman for the department. But the Industries and Commerce bag for the New Year is filling up regardless— with notifications of probes on practice.

— N.Z.C.N.A. Ncws Service.