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Thursday, 31 October 1974
Page: 2189

Senator TOWNLEY - I direct my question to the Minister representing the Treasurer. What will be the amount of the pay-as-you-earn deductions that will be allowed during 1974-75 as interest deductions to those people buying their homes under the scheme recently approved by Caucus? What would home purchasers save in the same financial year if interest rates were reduced to the 1972 levels? Does the Minister agree that the Government should release more liquidity so that interest rates can come down because in that way home owners would be considerably better off than under the proposed scheme?

Senator WRIEDT - Obviously I am not in a position to answer the first 2 parts of the question. They will have to be placed on the notice paper for the Treasurer to provide a proper answer. As to the last part of the honourable senator's question, the Treasury has made 5 releases of liquidity since June, if my memory serves me correctly. It has made a great amount of liquidity available in the economy which previously was not available. It would be quite remiss of the Government now to allow injections of money which were unnecessary and unwarranted into the economy at this stage. The Government has been careful in its monetary policy to ensure that there has been a relaxation of the liquidity position, and that is the policy it will continue to follow.

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