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Thursday, 17 April 1980
Page: 1578

Senator Carrick -On 5 March 1980 (Hansard, page 546), Senator Primmer asked me, as Minister representing the Treasurer, a question without notice concerning a deposits insurance scheme for permanent building societies. The Treasurer has provided the following information in answer to the honourable senator's question:

The scheme that has been endorsed by the Government for the insurance of deposits with permanent building societies is a private industry-based scheme. The frame-work for such a scheme was developed following consultations with representatives from permanent building societies.

The scheme involves the establishment of a private national insuring corporation, the capital of which would be wholly contributed by building societies. Premiums would be paid to the corporation by insured societies.

As the purpose ofthe scheme is to protect the funds of depositors in building societies, and as the scheme would bc entirely self-financing, the question of participation in this scheme by other bodies does not arise.

The Government's endorsement of the scheme in no way, of course, prevents interested groups from providing any comments or making any representations to the Government that they wish.

There are, of course, existing arrangements established by credit unions for protecting depositors, including the estalishment in several States of Savings Reserve Funds which have statutory responsibilities for the protection ofthe savings of depositors in credit unions.

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