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Thursday, 19 May 1960


Mr Cairns s asked the Treasurer, upon notice -

1.   What are the regulations or understandings which affect lending by trading banks?

2.   Were loans by the trading banks to the authorized dealers in the short-term money market made in accordance with those regulations or understandings?


Mr Harold Holt - The following are the answers to the honorable member's questions: -

1.   So far as action by the Reserve Bank is concerned the lending policies which the trading banks were asked to follow over 1959-60 were stated by the Governor of the Reserve Bank (then the Commonwealth Bank) on 1st December, 1959, in the following terms: -

The banks were asked to see that their lending policies were consistent with not more than a moderate expansion of bank credit over 1959-60. The allocation of advances continued to be determined by the banks themselves in accordance with accepted banking principles. However, banks were asked to continue to refrain from granting advances for the extension of hire purchase and instalment selling and to avoid giving any stimulus to speculative tendencies. It was assumed that banks would, as usual, give special consideration to any areas adversely affected by seasonal conditions.

2.   As will be seen there is nothing in the above statement to preclude loans by the trading banks to authorized dealers in the short-term money market.

Australian Investments in South Africa.


Mr Cairns s asked the Treasurer, upon notice -

1.   What amounts of capital have been invested in South Africa by Australian investors during each of the past five years?

2.   What are the main types of industry or activity in which this investment has taken place?

3.   What amounts of capital have been invested in Australia by South African investors during each of the past five years?


Mr Harold Holt - The answers to the honorable member's questions are as follows: - 1 and 3. While complete and precise figures are not available it is estimated that the flow of direct private investment in companies in each direction between Australia and the Union of South Africa has amounted to appreciably less than £1,000,000 in each of the years 1955-56 to 1958-59.

2.   No classification by industry of Australian investment overseas is available.

Overseas Investments in Australia.


Mr Peters (SCULLIN, VICTORIA) s asked the Treasurer, upon notice -

1.   What was the total amount of capital from (a) the United States of America, (b) the United Kingdom, and (c) other overseas countries invested in Australia in 1950-51, and what amount was invested in Australia from each of these sources in each succeeding year?

2.   What was the profit made on investments from each of these sources in each year from and including 1950-51?


Mr Harold Holt - The answers to the honorable member's questions are as follows: -

1.   Details of the annual inflow of private oversea investment in companies in Australia from the United Kingdom, the United States of America and Canada and all other countries are given below for the years 1950-51 to 1957-58. This information is taken from the Annual Bulletin of Oversea Investment, 1957-58, which is published by the Commonwealth Bureau of Census and Statistics. In order to comply with the secrecy provisions of the Census and Statistics Act, the figures for the United States of America and Canada are shown only in combination.

 

2.   The table below sets out the investment income payable to the United Kingdom, the United States of America and Canada, and all other countries, out of profits earned by companies operating in Australia, for the years 1950-51 to 1957-58. These figures include profits remitted or credited, as well as undistributed profits which have accrued to oversea parent companies or head offices. The figures shown include profits on investments in Australia prior to 1950-51.

 







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