REMEMBER WHEN

GOLD COAST BULLETIN Tuesday, April 8, 1986

QUEENSLAND AttorneyGeneral Neville Harper took a swipe at the banking sector as the public furore over housing interest rates continued.

At the same time, Mr Harper revealed he was considering the implications of deregulating building society interest rates.

He hoped to have a detailed report on the possibility by the end of the month before putting a recommendation to the State Government.

He also accused the Federal Government of causing the highest interest rates in the nation’s history, despite that happening several years earlier under the Coalition.

He also attacked Prime Minister Bob Hawke for “breaking his promise” on home loan interest rates and especially the decision to provide a subsidy only to the corporate banking sector.

He said this decision in favour of corporate interest was to the detriment of the cooperative building societies.

“If anyone of you can tell me that is consistent with what used to be Labor policy, I’m a Dutchman,” Mr Harper said.

He said the Federal Government should change its mind and extend the interest rate subsidy given to the banking sector to cooperative building societies as well.

Mr Harper supported the Premier’s call for building societies to hold down their home loan interest rates in the wake of the Federal Government’s decision.

However, he added: “One must face reality, the Federal Government is encouraging banks to increase their rates and building societies have to ensure their rates remain competitive.”