The Sydney Morning Herald from Sydney, New South Wales, Australia • Page 1

WEDNESDAY, DECEMBER 3, 1980 Eating out on Christmas Day Orlnk gilt Ideas, Pages 23-26. No. 44,595 TELEPHONE 20944 64 PAGES 20 CENTS LATE edition uuuuiSJ THAT Western drover who Howard warns: Not carte blanche for the banks Home interest rides around Parramatta (Column 8, yesterday) turned up at a local CBC bank last week on hdrscback. As he leaned down to transact his business in the fast queue, of course the manager, Mr Bob Moses, eyed the horse and, in his own words, "wondered whether a deposit would be made before they withdrew." The drover, Brendan Shiels, originally from Ireland, reportedly has four horses and plans to ride around Australia when he's built bis equine tally to 11. overdraft BERRI Co-operative, of South rates soar Australia, likes to boast that it's Australia's largest single winery and distillery, but appears (from the boast on its popular riesling) to have over-estimated its capacities, so to speak.

A blurb on its casks proclaims: "25 per cent more wine than any other 4 litre cask." Underneath, for those with inadequate mathematics, is a simple declaration of contents: "5 litres." From RUSSELL BARTON, Political Correspondent CANBERRA. Interest rate limits on trading bank overdraft loans for individuals and small businesses go up today by 2 per cent and home loan rates will rise by 1 per cent. (tym.i JlTt.n7jffl1 A marathon sitting last night by the eight- tlLLIiyi I member monetary policy committee of Federal lTllT'7IfV1VFl I Cabinet decided on the new rates. IT- LOUISE CANDY, publicity officer for the Red Cross Blood Transfusion Service, is delighted by Sydney's "wonderful" response to an urgent appeal for donors during the rail strike. Stocks should be back to normal soon, thanks, to Mr and Mrs Average, and the likes of the American poet Rod McKuen, who's taken the plunger.

10.5 pc 11.5 pc (current rate) $200 S213 SI 89 S203 S250 S267 $236 S254 S300 S320 S283 S305 Principal and terra 20 years $20,000 25 years $25,000 20 years $25,000 -25 years $30,000 20 years $30,000 -25 years The car in which five people died. Test, would have prevented Mt Ousley smash judge Truck owner guilty of manslaughter Tlie owner of a truck involved in a smash in which five people died at Mt Ousley last year was found guilty yesterday of five counts of manslaughter. The jury found the driver Rcnshaw had told the court support from the Prime Minister, Mr Fraser. The interest rate rises were inevitable. Mr Howard was forced into his snap announcement to Parliament there was no prepared statement and he used a sheaf of scrappy notes by the need to settle quickly the desperately uneasy money market.

The rise in rates on Government securities, such as Australian Savings Bonds, is urgently needed if the Government is to quickly tap household savings and check the runaway money supply growth. WELL, why do the odd num But as the Leader of the Mr Hayden, pointed out, the Government had not given a surhci-ent lead to the professional big- that while coming down Mt money investors by setting new rates on traditional Government bers run in the opposite direction to the evens in Heeley Street. Paddington (Column 8, Monday)? Perhaps a reader out there somewhere can tell us. Mrs Vimy Wilhelm, president of the Paddington Society, doesn't know. Max Kellyi a senior lecturer in urban history and economic history at Macquarie University, author of Paddock Full of Houses, a history of the suburb and himself a Heeley Street resident can say only that he doesn't know of another local street like it.

bonds. Until this is done by the Reserve Bank, the money market will remain uneasy. The big step of freeing trading and savings banks of controls on the rates they can offer for fixed term investments indicates the Government's willingness to accept expected recommendations from the cur rent Campbell Inquiry into the financial system for deregulation of bank's borrowing and lending prac I COAL TRUCK 1 JACK-KNIFED ON ml 1: SAFETY BARRIER KS MVi A -Swh fOUR OTHER bI PSmfwS AS CAR I 1 OVER BANK tices. The inquiry is not expected to Big announcement soon on training policy The Government is to announce in the next tew days its policy for coping with the looming shortage of skilled manpower. Page 3.

Child custody tribunal The State Government is to consider' setting up a tribunal to decide on custody cases such as that involving three-year-old Stephen McGuire of Wollongong. Page 3. Talks on border tension Talks are expected to be held between Soviet and Syrian officials over growing tension on the border with Jordan. King Hussein of Jordan appealed to the US yesterday to speed arms deliveries, saying the situation was "pretty grave." Page 5. Negri not suspended The Sydney Stock Exchange has decided not to suspend quotation of Negri River shares but to investigate dealings.

The decision was made as the diamond exploration company's board tried to obtain the unfavourable report on their licence areas made by Dr Peter Solomon. Page 27. 1 University results tomorrow Sydney: Veterinary Science. The decision on home loans means monthly repayments to savings banks will rise by $13. to $213 a month for a $20,000 mortgage over 20 years and by $22 to $305 a month for a $30,000 loan over 25 years unless banks grant an extension of repayment terms.

The interest rate on overdrafts of less than $100,000 will increase from the present 10.5 per cent to a ceiling of 12 per cent. Announcing the changes to Parliament just before 11 pm the Treasurer, Mr Howard, emphasised that the new overdraft rate was the upper limit. "It should not be seen as carte blanche to raise rates, to the limit of the ceiling," he warned trading banks. "It is hoped it will be used in a proper, sensible and responsible manner." Mr Howard also said that the Government had decided to lift all controls on the rates that savings and trading banks can offer on deposits. The banks have argued that previous controls, which among other tilings prevented them from offering more than 9 per cent on fixed deposits held by savings accounts, had hobbled them in competition with other institutions, notably the building societies.

He also foreshadowed other changes which would require the approval of the Loan Council. This was taken to mean that there would be a rise in rates the Government oilers on Australian Savings Bonds. The present series, which carries an interest rate of 10.25 per cent, was withdrawn from sale last night. Exemption for farmers The three senior National Country Parly representatives on the eight-member monetary policy committee salvaged a significant victory from the four-and-a-half-hour meeting. Rural producers will be exempted from the interest rate rise to be allowed on small overdrafts that is those of less than $100,000 while the present drought continues.

The borrowing capacity of the Commonwealth Development Bank, which is a big lender to farmers, will be doubled from $20 million to $40 million. The NCP's leader, Mr Anthony, deputy leader, Mr Sinclair, and Primary Industry Minister, Mr Nixon, can take credit for the unprecedented exclusion of farmers from the new interest rate market, although they are understood to have received report until mid-1 98 1. The director of the Australian Bankers' Association. Mr Ron WHY it is now Heeley Street is also a mystery Mr Kelly says it was originally named for Frederick Augustus Hely. principal superintendent of convicts in NSW from January 1.

1823, and a prominent early settler. Cameron, welcomed the announcement last night. He said the lifting of the on bank deposit rales for savings and fixed term accounts should assist the banks to restore of the truck guilty of five alternative charges of culpable driving relating to the deaths of the five people. Judge Loveday said in the District Criminal Court yesterday that the fatal collision on Mt Ousley would have been averted if the coal truck had been examined before its certificate of roadworthiness was issued. "The vehicle was in a most unroadworthy condition and should never have been passed for registration." He made these comments after a jury found the truck owner Giuseppe Giorgianni.

54. of Outlook Drive. Figlrcc. guilty of the manslaughter of Mrs Dorothy Irene Moore. 39, and her four children.

Julie-anne. 17. Lynctte, 16. Stephen. 14, ami Gregory, II, on Mav 18, 1979.

Judge Loveday said the certificate was issued without any examination and "the tragic accident that followed should be a lesson to all persons who operate authorised inspection stations." He said the task of examining vehicles and reporting their defects was important in the community. The driver, Gary Leonard Rcnshaw, of Trcsnan Street. Unandcrra. was found not guilty of the samo five charges of manslaughter. The jury, of 12 men.

found both accused guilty of culpable driving occasioning grievous bodily harm to Mr Stanley Johnson on May IS, 1979, at Mt Ousley. It took almost seven hours to reach its verdict. uusley on May 18 with a truck loaded with coal, the brakes had failed and it had started "to run away." Evidence was given that the truck, loaded with 37 tonnes of coal, crossed over the wrong side of the road and collided with several vehicles, including the Moores' car, which then went over the embankment. Detailed evidence about the condition of the truck's braking system was given and Mr W. Gregory.

QC, Crown Prosecutor, claimed that both accused knew the brakes were "dangerously defective." In his summing up. Judge Loveday said the Crown case of manslaughter depended on the jury accepting six points. These were: that the brakes were defective: that using this truck with these defective brakes constituted an appreciable risk of very serious injury to others; that the accident was caused by these detective brakes; that the accused knew of the defective condition of thc brakes: that he appreciated the risk; and that he either ignored the risk or was highly negligent in the means he adopted to cope with it. In addition, the jury had to come to the conclusion that the accused exhibited such a degree of negligence as to show disregard for the life and safety of others. Judge Loveday said to find the accused guilty of culpable driving the jury had to be satisfied the brakes were defective, that they constituted an appreciable risk, that the competitive rates.

Although there were still restrictions on overdrafts and home loan rates, the increased limits should enable a greater freedom in lending. The executive director of the NSW Permanent Buildine Societ ies Association, Mr Barry Carl A PYMBLE reader has found yellowing copies of the Her-' aid in a cupboard that had been undisturbed for almost 28 years. In Column 8 there was an item about a beer shortage that made modem Sydney seem awash in the stuff by comparison; there was a sorry tale of bureaucratic bungling, and of a council workers' work-to-rule. The letters page contained a lively debate about the quality of Sydney bread. THE more things change The scene of the Mt Ousley smash.

ton, said a bank rate rise had little effect on building societies at this stage. from the dock, Giorgianni said the night before the accident 'S Building societies' lending rates were restricted only by their he asked Rcnshaw it every thing on the track was all right levels of funds. These had been running at a reasonable level and statement until funds became restricted (as they would if the banks attracted money away from the building defective condition was known or should have been discovered by him. that he knew or ought to have known the risk and that either he ignored it or took negligent measures to cope with it. The court had been told both accused used to get together on the weekends to carry out regular maintenance on the truck.

In an unsworn statement "I thought registered and as told it was. Rcnshaw. in his from the dock, said: 1 was driving a vehicle." Judge Loveday societies), interest rates would not remanded rise. Members of the Cabinet's mone both men in custody for sentence on Friday at the District tary policy committee are Mr Fraser, Mr Howard, Mr Anthony, Mr Sin Criminal Court. clair, Senator John Carnck, Senator Dame Margaret 'Guilfoyle, Mr Lynch and Mr Nixon.

Wran is not buzzing off Arts Churches 14 Comics, Crosswords 51 Finance 27-30 Law Notices 16 Look! 23-26 Lottery (1823) 18 Mails 16 Federal Parliament 12 Radio 17 Shipping 16 Sport 51-54 Television 16 Weather 17 READERS' LETTERS: Stephen McGuire (Miss B. Bernstein, Mr Brady); vanishing pupils (Mr P. Landa); the ASIO Act (Miss L. Elliott) Page 6. Loans now dearer, but easier to get Metropolitan: Chance of a thunderstorm.

Sunny periods. Temps: City 19-29; Liverpool 19-30. Pollution: medium. Yesterday: City 20-24; Liverpool 19-24. NSW: Rain periods in north east clearing.

Scattered thunderstorms in east, very warm northerly winds tending milder NW to W. The Sea: Slight to mod, low swell. Temp: 20 deg. C. Tides: Fort Dcnison: High 6.30 am (1.4 metres), 6.36 pm (1.3 metres).

Low 12.37 pm (0.5 metres), 12.40 am (Thurs) (0.4 metres). Sun: Rises 5.37, sets 7.53. Moon: Rises 3.10 am, sets 3.48 pm. Full details, warnings, fire and wati restrictions and weather map Page 17. LATE NEWS EEC warns on Poland ILXHMBOUKG.

Tuesday. The European Common Market sjid today any intcrtcrcnce in Poland's affairs would 'have very serious consequences for international relations. communique issued the end of a two-day EF.C summit recalled that the 1975 Hebinki fiuiopean Security "Declaration committed it 35 sien.i-torics to non-in'erfiTence in other TiT" statement tol-o i Western cvpita'n ihiit tvon considering i in 1'oland us cn-1 I'irmoil tint in 'nth a 'la'vc of six niontti'. sen. AAPReuter aid to l.in.i.

I'dj- 5 "And since I've got a hell of a way to go, before either of those things happens, there's no reason why I should block off any options." He said the way things had developed in the Federal ALP, it would be more divisive than unifying for him to start seeking a Federal scat. Canberra' yesterday, Mr Wran said: "If I'd had any intention of going to Canberra I would have been a candidate at the last Federal election." But he toned down his statement, saying the road to Canberra would be more difficult in the light of his intention to stay for a further term if he ever chose to tread it. He added hesitatingly: "But I'm er, er. er, heartened if I can put it that way that, despite the views in some quarters that I'm an aging politician, the people in the United States have elected a President who is 70 years of age. and the British Labour Party elected a leader who is 68 years of age.

Hand here? AC inquires By CATHERINE HARPER, State Political Correspondent The Premier, Mr Wravi, gave an undertaking yesterday to stay as State Labor Leader for another three-year term and so virtually ruled out any move to Canberra. However, he refused to rule out publicly the possibility pf eventually going to Canberra and said there was no reason to "block off" his options. In answer to questions at a press conference about his Canberra aspirations, he said he took his undertaking lo lead Labor in the next campaign to mean that he would be in State politics for tlie ensuing three-year term, He said: "I think it would be a wrong thing to present yourself to the public and then buzz off. "And I've got no intention of buzzing off." Whcl first asked about Turn behind the Financial Newt for: Personal notices: P30 more commercially realistic rates they will be more willing to accommodate would-be borrowers. And now that the Government has abolished its controls on the rales which banks may offer to attract deposits, they will have more funds available for lending.

This historic step in the "deregulation" of the banks, which anticipates the finding of the Campbell Inquiry, is likely to heat up competition for funds between the banks and the building societies and credit unions. Mr Howard may be overly optimistic in hoping that the massive 2 per cent rise in small overdraft rates will allow the banks scope to compete between themselves on. the rates thev offer to various customers. The banks consider themselves to have been so hard done by that they are more likely to charge all their customers the maximum they arc allotted to. By ROSS GITTINS, Economics Editor The Government's moves should make bank finance easier to get, even though they make it harder to afford.

Until now, the Government's clamps on the interest rates which the banks can charge on home loans and small-business overdrafts have kept those rates looking relatively attractive compared with the rates paid by commercial undertakings. But as Mr Howard now admits, the lower rates were somewhat illusory. The banks have been both unable and unwilling to actually lend money at those rates. The savings banks have been unable to attract sufficient deposits to maintain their usual levels of lending to home-buyers. Now thiit the banks are able to charSe what they consider to be task force inquiring into the collapse of the $1,000 million banking empire said yesterday they had heard the rumours about Mr Hand.

"We are looking into them but nothing concrete has come up," he said. He said that despite reports that Mr Hand had lied overseas about the time he disappeared, there was no evidence on Immigration Department records that he left Austrajji. Sydney detectives and Corporate Affairs Commission investigators arc investigating reports that Mr Michael Jon Hand, a partner in the failed Nugan Hand merchant banking group, has been seen in Sydney. Mr Hand. 38, disappeared from a Pyrmont tenement house early in June and has not been seen since.

An investigator attached to the special poAe and CAC Classified index: P30 'V' i i. Printed aiirT published bv JOrm Falrfa end Sons Ltd. el i-ionel Street. Postal artctresft Boa 506. GPO.

Sydney, loot. Rcels'ared for postlnQ is a newspaper Cat-cronr Recommended and maslmum price only. Int" late bv air extra, ADVERTISING: 2 0944 Mr Hand.