BANK OF N.Z.

Evening Post, Volume CXL, Issue 22, 26 July 1945, Page 8

BANK OF N.Z.

STATE ACQUISITION

"PURSUIT OF IDEALS"

| "I for one do not attribute frivolous irresponsibility to the Government in its intention to nationalise the Bank of New Zealand," said the Hon. E. R. Davis (Auckland) in the Address-in-Reply debate in the Legislative Council yesterday afternoon. "I accept its purpose at its face value as a genuine desire* to implement the progressive socialisation of the country- The Government believes it is entitled to interpret its tenure oh the Treasury benches as an authority so to proceed, but I ask the Government to respect the great tradition it holds that a party in office must not only consider the party itselt but also the whole country." According to the Press, continued Mr. Davis, Mr. Nash and also the late Mr. Savage .expressed themselves as being perfectly satisfied with the conditions under which the bank was being carried on, and it was his conviction that a considerable body of the people regretted the move as evidence of recklessness in pursuit of ideals, rather than as a necessary expansion for the/ good of the whole country. It was a thousand pities that matters such as that should be brought up at a time like the present, when the public morale required to be' at its highest to meet the tribulations to which the country would be subjected when the war finally came to an end. The Hon. T. O. Bishop (Wellington) said the subject was of great importance to New Zealand today, perhaps more particularly because there _ was such a striking difference of opinion concerning it. CASE NOT SOUND. "I do not pretend to any banking knowledge or any wisdom in financial matters," said Mr. Bishop, "but I have never read nor have I ever heard anything which in my own judgment seems to make out a sound case for the proposal to take, over the bank and make it a national institution. On the contrary, some two years ago the Minister of Finance gave very great praise to the work of the Bank of New Zealand. I think he said it had served this country excellently well, and that even had the Government owned the bank it could not have done better than had been done. "As recently as March of this year a statement was issued—again by the Minister of Finance—in which he said that if the Government took over the bank it was not the intention to interfere in any way with, its management; the whole of the staffs would be retained and even the present board of directors. t "That being so, and realising that the Minister of Finance is an authority on the subject, it seems to me that no case has been made out for the acquisition of the bank. If the bank is serving the country 'excellently well,' if the Government could not do better than it has done, and if it is not the intention to change its management in any way, then why make , any change, particularly in the face of such very, strong public opinion?"