Statement On Banks Claimed Inaccurate

Press, Volume CIII, Issue 30405, 2 April 1964, Page 3

Statement On Banks Claimed Inaccurate

GVeto Zealand Press Association)

WELLINGTON, April 1.

I he trustee savings banks should have nothing to fear from the opening of trading bank savings banks if they were as efficient, and their services as good, as claimed, said Mr D. M. Arnold, chairman of the New Zealand Bankers’ Association, today.

He was referring to a statement made by the secretary of the Associated Trustee Saving Banks of New Zealand (Mr J. T. Shaw) at Invercargill on Tuesday.

“It is disappointing the reprepresentative of the trustee savings banks should feel constrained to resort to inaccuracies and misrepresentation in his apparently fearful opposition to the case made in favour of the trading banks. “Mr Shaw is completely wrong when he claims I said

80 per cent of profits resulting from overseas trading banks participation in savings banks would accrue to New Zealand.

“My statement, which 1 stand by, was that 90 per cent of profits earned by trading banks operating in New Zealand would accrue either to the Government, or individual citizens of New Zealand,” said Mr Arnold.

If the trading banks made £lm profit in a year from their savings bank activities, 50 per cent would be paid to the Treasury in taxation. Of the remaining £500,000 40 per cent would accrue to the Government through its owner-

ship of the Bank of New Zealand, and 40 per cent to New Zealand shareholders of the other banks, he said. “A little simple addition would show these figures add up to 90 per cent of the £lm,” Mr Arnold said.

“Mr Shaw makes great play of the fact that trustee banks work for the interests of the people. This seems like a case of setting a mackerel to catch a sprat. “Possibly he is trying to convince communities it is in their interest to be given donations—even though many times the amount of such donations is unnecessarily expended building new premises and using redundantly our already scarce labour resources, skills and materials. “The trading banks need no such additional expenditure as they already operate a vast network of branches throughout the Dominion,” said Mr Arnold.

“In spite of Mr Shaw’s efforts to confuse the issue by introducing sundry trading bank charges, I stand by my previous contention that irrespective of their income, the trading banks spend less in processing a voucher than the trustee savings banks. “We are willing to demonstrate our efficiency as soon as the Government gives us the green light to go ahead,” said Mr Arnold.