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Wednesday, 3 June 1970

Mr WHITLAM (WERRIWA, NEW SOUTH WALES) asked the Treasurer, upon notice:

Will he bring up to date the answer which his predecessor gave me on 26th September 1969 (Hansard, page 2136) on loans' by building societies.

Mr Bury - The answer to the honourable members question is as follows:

(I)   In regard to the information sought on the amounts advanced in housing loans by (a) terminating and (b) permanent building societies in each Stale, the Commonwealth Statistician has advised that official statistics of the activities of permanent and terminating building societies by State are now available for 1967-68 and that some of the figures for earlier years provided on 26th September 1969 have since been revised. The statistics shown below refer to loans paid over during the financial years of societies ending in the years shown.


Annual figures for 1968-69 are not yet available. However, in June 1969 the Commonwealth Statistician started collecting information each month direct from permanent building societies and details for the months of May 1969 to March 1970 are as follows:


(2)   Information was also given in September 1969 on the interest rates charged (a) to and (b)by these building societies. The tables below update this information.

(a)   (i) Terminating Societies. The two main sources of funds for terminating societies are governments (under the Housing Agreements) and savings banks.

The table below shows the interest rates charged by States to building societies on loans made from Commonwealth Advances in April 1970.


Rates charged by savings banks on government guaranteed loans since August 1968 have been us follows:


(ii)   Permanent Societies

In the answer given on 26th September 1969 it was pointed out that comprehensive information on the rates paid on share capital is not available but that in New South Wales the predominant rate over recent years had been 6%. This rate appears to be still the predominant rate in April 1970. There also appears to have been no increase to April 1970 in rates paid by societies for deposits.

To the extent that societies borrow from trading banks, the rates of interest charged to them on such borrowings would not have exceeded the maximum overdraft rate. The trading bank maximum overdraft rate- was increased from 7}% to 81% from 9th March 1970.

(2)   (b) Predominant interest rates charged by Terminating and Permanent Building Societies. Terminating societies usually charge their members the same interest as they pay for their finds, plus a management fee which is equivalent to an additional per annum.


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