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Thursday, 21 November 1974
Page: 2622

Senator WALSH (WESTERN AUSTRALIA) - My question is directed to the Minister representing the Treasurer. Did Mr Snedden, the Leader of the Opposition, state last night that growth of the money supply should be closely regulated and controlled? When Mr Snedden was the Treasurer only 2 years ago at what rate was the money supply growing and did he make any attempt to control it?

Senator WRIEDT -I understand that Mr Snedden did make a comment yesterday along the lines indicated in the question. As to the latter part of the question, in the last year of the previous Government there was the greatest increase in the flow of money in the Australian economy we had seen. In the 12 months prior to the change of government it was no less than 26 per cent which was an increase at a rate beyond all normal money flow increases and one with which this economy, of course, like any other economy would not be able to cope. Immediately on coming to office we, as a government, introduced various measures such as revaluation and the variable deposit ratio scheme to arrest that inflow of money. I believe we have been successful. Even now, in the present conditions, we are experiencing a very strong demand as a result of a very large amount of money being in circulation. To sum up the answer, I think if Mr Snedden had listened to his own advice 2 years ago we would not have the sort of monetary problems which in the past couple of years have afflicted not only this country but many other countries as well.

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