OVERSEAS FUNDS.

Auckland Star, Volume LXXI, Issue 157, 4 July 1940, Page 5

OVERSEAS FUNDS.

POWER TO ACQUIRE.

MR. HAMILTON'S QUESTIONS.

ASSETS AS WELL AS SHARES 7

By Telegraph.—Parliamentary Reporter.) WELLINGTON, this day.

Discussing the announcement that the Government would take authority to take over overseas securities, the Leader of the Opposition, Mr. Hamilton, in the House of Representatives tost night, said that a much closer look must be taken at this question than was provided by the somewhat indefinite statement in the Budget. The Budget stated that overseas securities held by New Zealand residents could be acquired by the Government at current market prices. That was all. There were no details, no explanations.

Mr. Wilkinson (Ind., Egmont): Does that mean slump prices? What machinery was to be used? Mr. Hamilton asked, and how was it to work? Hβ had received inquiries from all parts of New Zealand, and it was essential that the Minister of Finance should answer eome pertinent questions to clear up doubts and fears. The per-, sonnel of the commission to be set up to deal with the matter was important. Had the Minister made calculations regarding what the position would be if some other country took retaliatory measures? What was the position with private companies? Would their shares be taken over and what would be the; basis of valuation? Would all asset* as well as shares be taken over and who would ultimately benefit by the sale of shares? What steps were being taken to ensure that there was no effect on the Australian share markets? Had the Government made any arrangements to overcome Australian regulations which did not allow exports to be purchased with Australian money? Mr. Hamilton added that current market prices would be an unfair basis in many cases, because of war conditions.

Mr. Eraser in Reply. A general reference to the Government's attitude towards overeea€ securities wae made by the Prime Minister, Mr. Fraser, in his reply. He said that the Government had no intention of summarily taking all securities and suddenly plunging them on to the market and depreciating their value. The Budget did not eay that securities would be utilised for what was essential for the war effort in this country. The Minister of Supply was in Australia at the present moment exploring every possibility of assistance to this country. That assistance had to be paid for. He did not know but that everybody should be pleased that any of the funds they held elsewhere should be utilised in •defence of this country. Citizens who had securities in Australia, he was sure, would be proud to assist with those i securities.