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Wednesday, 31 March 1965

The TEMPORARY CHAIRMAN (Senator Wood (QUEENSLAND) - Order! In conformity with the sessional order relating to the adjournment of the Senate I formally put the question -

That the Temporary Chairman do now leave the chair and report to the Senate.

Question resolved in the negative.

Consideration resumed.

Senator Sir WILLIAM SPOONER - I have about completed the development of the thought that it is a matter of great importance to see the Corporation established, operate successfully and thus contribute to the restoration of confidence in the real estate market and to the reinvestment of private funds in that market. I wish to remind the Senate that Government instrumentalities are wonderful but side by side with them almost invariably run ordinary commercial activities. For instance, in Australia an official short term money market operates upon which moneys can be placed on deposit, on security of Commonwealth loans. Running alongside that market is the unofficial market - the inter-company borrowing transactions. The possibility is that each market is of equal size. The figures for the official short term money market are available. The day to day deposits are of the order of £150 million. No verified information is furnished as to the volume of the unofficial money market, but the general impression is that it also is of the order of £150 million.

With the commercial bills market the position is similar. There is a governmental scheme and I think the unofficial market is greater than the official market. In this legislation we are embarking upon a new set of financial arrangements relating to housing. I do not think we can leave out of consideration the fact that the unofficial transactions alongside the official transactions are of great volume. The unofficial transactions will be encouraged or destroyed according to whether the official transactions are carried out successfully. Surely it is a correct approach in financial matters initially to act conservatively, to feel the ground, to test the possibilities and develop from that stage onwards. As I read the Bill and the Minister's second reading speech, such action is proposed at this stage. In my judgment it is a sound approach that the transactions should be commenced with those who are experienced in them. The Government organisation will gain its own experience at the same time and with that foundation will move on to what might be the fulfilment of the legislation.

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