CANBERRA BANKING BILLS REJECTED

Press, Volume XCVI, Issue 28447, 29 November 1957, Page 15

CANBERRA BANKING BILLS REJECTED

New Attempt After Crucial Senate Vote (N.Z. Press Association—Copyright) (Rec. 10 p.m.) CANBERRA, November 28. The Federal Government acted quickly today to try to end the Senate deadlock over its bank reform legislation. As soon as the Senate met today, the Minister for National Development, Senator W. H. Spooner, gave notice that the two banking bills rejected last night would be submitted again to the Senate on Tuesdav.

The decision means that the Senate will have an opportunity to review its action in rejecting the bills at the first reading stage last night.

The Labour Party will now have to decide whether it will keep indefinitely in Canberra the four invalid Senators who were brought this week to give it the voting strength to defeat the legislation.

One of the invalids went back to Canberra Community Hospital last night after voting against the bills. Labour will also have to decide whether to repeat its action of last night and reject the bills without explanation or debate at the first reading stage or to allow them to reach the second reading. The Melbourne “Herald” Canberra correspondent said today: “The Government believes that if Labour again rejects the bills next Tuesday, it will have the right under standing orders to re-submit them two days later, and continue re-submitting so long as the Senate continues to refuse to debate them.

“Sooner or later, in this cat-and-mouse game, one of the Labour Senators would be unable to be present, and the Government would then get a majority vote to enable the bill to proceed,” he said. Aim of Bills The correspondent said the Government’s legislation for reconstructing the Commonwealth Bank aimed at preventing any future Socialist attempt to destroy or damage the private trading bank system by unfair bank competition. “Labour says that the legislation will weaken the Commonwealth banking system, that it could be used as a first step towards selling the Commonwealth Trading Bank to private interests, and that it will prevent the Commonwealth Trading Bank competing with the private banks.” he said. The banking legislation collapsed with an even vote in the Senate after a tense and sometimes macabre tactical battle lasting two days. The Opposition, determined to check the Government’s move to divorce the Central Bank from the Commonwealth Trading and Savings Bank, had brought in four ill Senators to make up its numbers.

Two major bills of the twelve involved were forced through the House of Representatives on Tuesday. Breakaway Support One of the most important factors in last night’s critical vote was the support for the official Opposition afforded by breakaway Labour Senators, said the Parliamentary correspondent of the Melbourne “Sun.” Some Labour members believed that if the banking issue developed. a reconciliation between the disunited sections of the Labour Party could be attempted. Accusations and recriminations flowed freely in the Senate because the closeness of voting made it impossible for the Government to challenge the Opposition’s behaviour. Where the Senate voting is so even, a motion is declared lost. The Australian Labour Party and the two breakaway Labour parties .can muster 28 votes to the Government’s 28. Key Figure The key figure in the voting has been Senator J. Arnold, who was operated on eight days ago for a malignant growth. He was brought from Newcastle on Tuesday in a chartered airliner, accompanied by a nurse. He has been in a wheeled chair in a room next to the Senate Chamber. Immediately the Government

announced the Banking Bill last night. Senator Arnold was wheeled into the chamber in dressinggown, pyjamas, and slippers, under a barrage of flashing camera bulbs. The nurse, in a red cape, appeared in the Visitors’ Gallery. Leaders in Galleries Senator Arnold, with bowed head, and clearly taking no interest in the proceedings, was wheeled into position to be counted. and as quickly wheeled out . again. From the public galleries members of the House of Representatives. including the Leader (Mr Harold Holt), and the Opposition Leader (Dr. Herbert Evatt). watched the scene. While the President of the Senate (Sir Alistair McMullin) read a message from the House of Representatives about the passage of the second Banking Bill, Senator Nicholas McKenna, the Opposition leader in the Senate, beckoned anxiously for Senator Arnold to be brought out again from the sick room. During the division there was complete quiet. Any Senator trying to interject was silenced by the leaders’ gestures. Senator Arnold appeared to know nothing of what happened. The second bill was also defeated on the first reading.