XN000022-1980-06-25 — Page 18

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WEDNESDAY, JUNE 25, 1980

BUT HE STRESSED THAT THE UNIVERSAL BAN ON INTEREST IN EXCESS OF 60 PER CENT PER ANNUM WOULD APPLY TO ALL TRANSACTIONS WHERE INTEREST FALLS TO BE PAID, WHETHER OR NOT THE LENDING OF MONEY IS THE MAIN OBJECT, OR ONLY AN INCIDENTAL OR ANCILLARY ASPECT OF THE BUSINESS IN QUESTION.

HE NOTED THAT THE EXEMPTION OF SUCH BUSINESSES PRESENTS ITS OWN PROBLEMS IN THE CAMPAIGN TO ELIMINATE LOAN SHARKS. HOWEVER, HE WAS CONFIDENT THAT OTHER EQUALLY EFFECTIVE MEANS OF COUNTERING LOANSHARK ING ACTIVITIES WOULD BE FOUND WITHIN THE CONTEXT OF THE GENERAL PROVISIONS OF THE NEW LEGISLATION.

IN REPLY TO POINTS RAISED BY UNOFFICIAL MEMBERS, MR GRIFFITHS SAID IT WAS THE GOVERNMENT'S INTENTION SHORTLY BEFORE THE LEGISLATION COMES INTO OPERATION TO MOUNT A PUBLIC RELATIONS CAMPAIGN SO THAT THE PUBLIC MAY BE FULLY INFORMED OF THE PROTECTION OFFERED THEM. THEY WILL ALSO BE ENCOURAGED TO REPORT BREACHES OF THE LAW BY LOAN SHARKS.

HE ASSURED THAT WHERE MONEY LENDERS RESORT TO CRIMINAL METHODS TO ENFORCE REPAYMENT, THEY WILL, IF THERE IS EVIDENCE OF THIS, BE PROSECUTED.

ON THE PROBLEM CREATED BY OTHER INTIMIDATORY METHODS, SUCH AS DISPLAYING PUBLICLY ON POSTERS THE NAMES OF BORROWERS SUGGESTING THAT THEY HAVE WELSHED ON THEIR BETS, MR GRIFFITHS SAID THIS COULD BE DRAWN TO THE ATTENTION OF THE LICENSING COURT WHEN APPLICATION IS MADE FOR RENEWAL.

THE COURT CAN, IF IT CONSIDERS THAT SUCH UNDESIRABLE PRACTICES HAVE BEEN INDULGED IN SUFFICIENTLY, FREQUENTLY AND ARE SUFFICIENTLY REPREHENSIBLE, REFUSE TO RENEW THE LICENCE ON THE GROUNDS THAT

IT IS NOT IN THE PUBLIC INTEREST TO DO SO.

ON THE TWO RATES OF INTEREST OF 48 PER CENT AND 60 PER CENT SET OUT IN THE LEGISLATION, MR GRIFFITHS SAID HE WAS GLAD THE UNOFFICIALS FELT THEY WERE APPROPRIATE AT PRESENT.

HOWEVER, HE SAID, THE GOVERNMENT WOULD WATCH TO SEE HOW THEY OPERATE IN PRACTICE AND WOULD NOT HESITATE TO ASK THE COUNCIL TO ALTER THEM SHOULD THEY BE PROVED TO BE EITHER TOO HIGH OR TOO LOW.

HE ALSO ASSURED THAT THE LICENSING AND IN PARTICULAR THE RENEWAL OF LICENCE PROCEDURES WOULD BE KEPT UNDER REVIEW BY THE REGISTRAR TO SEE THAT IN PRACTICE THEY OPERATE EXPEDITIOUSLY AND FAIRLY AND THAT IF CHANGES APPEAR DESIRABLE, NECESSARY AMENDMENTS WOULD BE BROUGHT BEFORE THE COUNCIL IN DUE COURSE.