THE SILVERSTONE APPOINTMENT

Evening Star, Issue 22465, 9 October 1936, Page 6

THE SILVERSTONE APPOINTMENT

VALIDATION BY PARLIAMENT WIDE OPPOSITION PROTEST GOOD ADVERTISEMENT FOR DUNEDIN CITY [From Ock Parliamentary Reporter.] WELLINGTON, October 8. Incidental to the discussion of the clause in the Finance Bill validating the appointment of Mr Mark Siiverstone to the directorate of the Reserve Bank, Dunedin City's sound finance received a good advertisement in the House of Representatives. ,Mr Nash, Minister of Finance, when explaining tho many clauses in the measure, came to that dealing with Mr Siiverstone, declaring that he had high qualifications for the position. He was chairman of the Finance Committee of tire Dunedin City Council, “ the best managed city in the Dominion,”

There was scoffing laughter from northern members, but the Minister turned to them to declare that he had been speaking to a number of influential financial people recently, and they told him it was the best managed city from a financial viewpoint, and one which could borrow money just as easily as tho Government.

There was another interjecting chorus, capped with a loud “ hear, hear ” from Mr Jones (PostmasterGeneral ),

Mr Nash went on to explain that Mr Silverstone was chairman of the Dunedin City Finance Committee,

Mr Roy (Clutha): Who were responsible for putting Dunedin into such a sound financial position? The Minister: Some good councillors —Scottish people. (Laughter.) The Minister explained that it was not intended generally to alter the Reserve Bank qualification, but to make an exception in the case of Mr Silverstone, who had been a British subject for fifty years, and his high qualifications should not be lost to the Government because he was not British born. He went with his parents to London at the age of five, and had always given much thought to questions of finance and economics.

More serious handling of the validating clause came from Mr Coates, who led Opposition criticism of the measure. Surely, he asked, someone who was New Zealand born could have been found for the Reserve Bank directorate, without having to put through a whitewashing clause of this description. “ I have the greatest respect for the good old unionist, the good old hardboiled secretaries of Trades Halls,” he continued. “ Just how will they like the Government going over their heads ? I could think of a dozen I would welcome on this board.” (Government laughter.) Mr Schramm: What about Christ ?He was not born in New Zealand.

Mr Coates repeated his question—was there not a suitable New Zealandborn person for the position, without the necessity for the special legislation to allow someone to take the position who was not British born.-

Mr Jones: Were all your appointees British bom? '

Mr Coates declared he put it to New Zealanders whether they liked it, and it was for them to answer. “ I have never,” he concluded, “ seen a man look so uncomfortable as the Prime Minister at the present moment.” Mr Savage looked up smilingly to salute his critic in military fashion. Mr Coates; If I was of a venomous turn of mind, the Government would be raked fore and aft, and never left with a feather to fly with. Mr Fraser: Rather mixed metaphors. You can’t get feathers from a wreck. (Laughter.)

Mr Schramm: What about that Swedish geologist you got out here? Mr Bodkin (Central Otago) stated that he must oppose the clause validating Mr Silverstone’s appointment, not because ho was an alien by birth, but owing to the attempt made to justify it on account of the high reputation the Dunedin City Council enjoyed. Ho felt proud that the late Mr Justice Alpers came to New Zealand as an alien, and proud that he could riso to one of the highest positions in the land; but there had been misrepresentation in the case pf Mr Silverstone, for he had fought every inch of the way against the men who had built up the Dunedin City Council’s high reputation. Mr Jones: That is not correct. Mr Bodkin retorted that Mr Silverstone had been opposed to the policy of Mr A. H. Allen and others who built up the city’s reputation. Ho could not complain against the Labour Party putting its own supporters on the bank directorate, but he objected to crediting him with the remarkably good work achieved by the Dunedin City Council over a long period of vears.

“ Dunedin was my birthplace, and it is a lino place,” declared Mr Wright (Independent, AVcllingtoii Suburbs), who was another critic of the validation clause. He contended that the savings of the Dunedin people enabled them to lend money to Wellington and Auckland, making Dunedin the capitalistic city of the Dominion, and more power to it. The Labour Party had not long been in power on the Dunedin City Council, and it was only recently that jt had any control over its finances, therefore Mr Silverstone had nothing to do with the happy position Dunedin was in to-day. “ He has come in the wake of somebody else. He is a municipal cuckoo,” concluded Mr Wright, who could not see why that should be a reason for putting him on the bank directorate. Mr Neilson (Dunedin Central), speaking as a Dunedin city councillor, explained to the house that three Labourites, including Mr Silverstone, headed the last pole. The accumulations of renewal funds at the council’s credit were not the result of Mr Allen’s chairmanship of the Finance Committee, but were due to the very capable town clerk, who carried out the policy of the Tory council, and with equal capability administered the changed policy of the Labour majority, which was to give the benefit to those lower down the ladder. When Mr Silverstone submitted his financial statement to the council the first man to congratulate him was the former chairman, Mr Allen, and he was also complimented by other Tory members of the council.

There was laughter among the Labour members when Mr Cobbe (Oroua) opened his speech with the statement that he had been informed that the subject of the validating clause was a Communist, and that his activities in Dunedin had been very marked. He wanted to know if this man was a Communist, for if so he was not entitled to hold a director’s position.

Mr Coleman: He is a member of the Labour Party. Mr Cobbe: A Communist isa wrecker, but if this man is not a Communist it is a different picture altogether. He had also been informed by a man who spent many years in Dunedin that Mr Silverstone during the Great War spent a good deal of his time going around telling young men not to enlist.

Mr Campbell: Rot. Mr Cobbe declared that if Mr Silverstone was a Communist not all liis financial knowledge entitled him. to the position. “If these things apply _ to this man,” he added, “ his appointment is an insult to the people of this country.” Mr Langstone: How is it he is a councillor in the city where he lives? Mr O'Brien: The hen. gentleman should get that bug out of his head. _ Mr Cobbe: A thorough Communist is a born traitor, and will take the oath of. allegiance and deliberately break it. A Labour Member: You are a humorist.

Mr Cobbo: The whole thing revolves around the question whether he is a Communist, and I would like a deliberate statement from the Prime Minister.

Mr Osborne (Manukau) : You know ho is not a Communist.

Mr Moucur (Rotorua): Do you know anything about Hitler? Mr Smith (New Plymouth), who spoke next, expressed surprise that a member of the Government had not immediately risen to deny the statements regarding Mr Silverstone. There was a chorus of Labour interjections, and Mr SpeaJker reminded members that there had been half a dozen interruptions within half a minute of Mr Smith’s speech. This intervention enabled Mr Smith to proceed without comment. Ho declared that the funds of the Dunedin City Council had been raided. Mr Jones: What do you mean by raiding? Mr Smith: They could not raise the rates or reduce the expenditure, and the ratepayers would not permit them to borrow, so the only thing they could do was to use certain portions of the renewal and reserve funds.

Mr Jones: They did not use portions of the renewal funds.

Mr Smith: This gentleman has not proved his possession of any expert knowledge of finance which would entitle him to sit on the Reserve Bank board.

Mr Langstone: He will do as good as Mr Leslie Leieaux.

The Alinistcr of Finance, replying to the discussion, suggested that it was unworthy of the Opposition to criticise a man because of the country ho was born in. though it was legitimate to criticise the appointment on the ground of a breach of the Jaw.

Sir Kyle: Why did you criticise Air N iemeyer ?

The Minister: i did not do so. Air Hamilton : Ask your Alinistcr of Lauds.

The clause validating the appointment was challenged in the committee stage, lint was retained by 43-14.