Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
 Download Full Day's HansardDownload Full Day's Hansard    View Or Save XMLView/Save XML

Previous Fragment    Next Fragment
Wednesday, 7 March 1973
Page: 288

Mr CREAN (Melbourne Ports) (Treasurer) - I move:

That the Bill be now read a second time.

The purpose of this Bill is to implement the Government's decision to introduce legislation to repeal section 66 of the Commonwealth Banks Act 1959-1968 as soon as possible after the resumption of Parliament. Section 66 of the Act provides that the amount of a housing loan by the Commonwealth Savings Bank or the Commonwealth Trading Bank to an individual on credit foncier terms under Part VI of the Act shall not exceed 90 per cent of the Bank's valuation of the property on which the loan is secured, or the prescribed amount, currently $9,000, whichever is the lesser. In practice all such credit foncier loans to individuals - that is, loans where the principal and interest are repayable in equal periodic amounts - by the Commonwealth Banking Corporation are made by the Commonwealth Savings Bank.

Repeal of section 66 will remove the present limitation on the Bank's ability to determine flexibility and in the light of particular circumstances the maximum amount of a credit foncier housing loan which can be made against the value of a property. The Commonwealth Savings Bank will then be on the same footing in regard to housing loans as the other savings banks subject to the Banking Act, which are not subject to any legislative constraints about the maximum amount of individual loans. The Bill provides for the repeal to come into force on the date of the royal assent.

I commend the Bill to honourable members.

Debate (on motion by Mr Chipp) adjourned.

Suggest corrections