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Queensland Permanent Building Society



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TREASURER

EMBARGO

NO. 108

PRESS STATEMENT BY THE ACTING TREASURER THE HONOURABLE ERIC L. ROBINSON, MP

QUEENSLAND PERMANENT BUILDING SOCIETY

The Acting Treasurer, Mr Robinson, said today that the Queensland

Permanent Building Society had been subject to particular problems

and there was no need for concern on the' part of investors in other

building societies. He was commenting on the appointment of a

liquidator to the Queensland Permanent Building Society.

Mr Robinson referred to the statement by the Minister for Housing in

the Queensland Parliament that moneys sufficient to meet the estimated

deficiency within the Queensland Permanent Building Society were

presently available to the liquidator, and that the operations of

other societies were not affected.

The Minister said building societies generally were sound and their

asset backing was very strong. The State legislation under which

building societies operated limited the range of assets in which funds

could be invested and placed societies' operations under surveillance.

Apart from investments held for liquidity purposes, assets of building

societies predominantly represented mortgages on individual houses.

The great majority of mortgage loans are insured by the Housing Loans

Insurance Corporation, which is a statutory authority guaranteed

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against loss by the Commonwealth Government^ or by private mortgage

insurance companies. · '

The permanent building society movement had the full support of the

Government in its role as a major provider of housing finance in

Australia.

Mr Robinson said that the Reserve Bank had a continuing understanding

with trading banks that they would consider sympathetically requests

for finance received from building societies which were responsibly

managed and had adequate asset backing. ■ .

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