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Friday, 3 December 1976
Page: 3221

Mr UREN (REID, NEW SOUTH WALES) -I direct my question to the Treasurer. In spelling out the monetary measures consequent upon the devaluation to the House yesterday, he made no mention of the Government's money supply target. Has the Government abandoned the target announced in the Budget Speech and is this because of the adverse effects it would now have on the housing market?

Mr LYNCH - In response to a question yesterday I said that the objective of monetary policy remained the same as I have reaffirmed on earlier occasions; that is, monetary growth will be sufficient to underwrite recovery in the economy but, at the same time, will not be accommodating to the rate of inflation. The purpose of the measures which have been introduced as part of the devaluation package is, in fact, to seek to deal with any excess liquidity that might flow from the decision to devalue. Those measures are therefore designed to deal with the monetary consequences of devaluation, not to alter the Government's basic monetary stance.

Mr Uren - You are going to keep it at 12 per cent; that it your target?

Mr LYNCH - I think I have made it clear to the honourable gentleman before that the 10 per cent to 12 per cent guidelines which were set down in the Budget were clearly indicated as being guidelines and, of course those guidelines will need to be adjusted over a period as economic developments take place.

Mr Scholes -Mr Speaker,I rise to a point of order. In answer to a question a few moments ago, the Prime Minister used a distorted quotation of the Leader of the Opposition which has been corrected previously in this House. As the Prime Minister's answer will be broadcast I ask if you will examine that quotation and make the necessary examination of the broadcast material?

Mr SPEAKER -The honourable gentleman well knows that there is no point of order involved.

Mr Malcolm Fraser - Mr Speaker,I have sent to my office for the exact quotation and will be perfectly happy to have it incorporated in Hansard so that the exact words can be on record.

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