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Wednesday, 22 August 1973
Page: 192

Mr JACOBI (HAWKER, SOUTH AUSTRALIA) - I address my question to the Treasurer and preface it with a reference to the ever growing proportion of financial advances being made by institutions outside the scope of Australian banking legislation, amounting to 55 per cent of cash receivables as at June 1972. I ask: Considering important court decisions both in Australia and Great Britain, does the Treasurer not consider that it is now established that the Government has power under either the banking or corporation powers of the Constitution, or both, to exercise direct control over finance companies and/ or similar money lending institutions? Will he take steps to exercise these powers at an early date?

Mr CREAN (MELBOURNE PORTS, VICTORIA) (Treasurer) - It is true as the honourable member for Hawker says that there are vast areas of credit extending agencies outside the banking system as such. Since 1945, and even earlier under wartime regulation, it has been thought necessary to regulate the banking part, which is a decreasing part, of the total supply of credit. I have always believed also that there should be some kind of regulation of other finance extending organisations. I have indicated in this House previously that I intend as soon as possible to bring down legislation covering those other areas. I have indicated that I will hold talks first with the bodies which may be affected. The matter has been and is under extensive examination now by both the Treasury and the Reserve Bank, and I hope to be able to do something about it later this session.

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