OPPOSITION BY A.S.B.

Press, Volume CIII, Issue 30420, 20 April 1964, Page 12

OPPOSITION BY A.S.B.

Loss To Local Investment (N.Z. Press Association) AUCKLAND, April 19. The Auckland Savings Bank, the largest trustee savings bank of New Zealand will “uncompromisingly oppose” the Government’s plan to allow trading banks into the savings bank field, says a statement by the ban’s board of trustees. The board held a special meeting, called by the president of the bank (Mr W. T. Anderton) to discuss the Government’s move.

Members' said the savings field had been traditionally and efficiently served by the Post Office Savings Bank and the trustee savings banks for more than 100 years. The statement says entry of the trading banks would seriously affect the P. 5.0.8. and trustee banks by diverting funds to the trading banks. This would inevitably happen because trading banks were more advantageously placed to offer both trading and savings facilities.

Trading bank intervention would result in an increased portion of the savings of Aucklanders being invested with the Government, says the statement. Consequently less would be available for local investment in home, farms and local authority finance. ' The Government’s plan would seriously restrict the ability of the A.S.B. to donate large sums to charitable; cultural, educational, medical, and community service organisations. The Government's decision will be discussed by the national executive of the Post Office Employees’ Association in Wellington next month. Action has been requested by the Auckland section of the association.