TRADING BANKS IN HIRE-PURCHASE

Press, Volume CIII, Issue 30529, 26 August 1964, Page 3

TRADING BANKS IN HIRE-PURCHASE

Possibility Still Exists, Says Mr Lake (From Our Own Reporter) WELLINGTON, August 25. The Government’s mind was not closed to the idea that trading banks might be allowed to enter the hire-purchase field, the Minister of Finance (Mr Lake) said in Parliament tonight during committee discussion on the Private Savings Banks Bill. “We are awaiting the result of the deliberations of the Tariff and Development Board on this subject,” he said. “If the board thinks it desirable that the banks enter this field, I shall make recommendations along these lines to the Cabinet.”

Mr Lake was answering queries from Mr N. E. Kirk (Opp., Lyttelton), who said the bill did not prohibit banks from entering the hirepurchase field. Opposition members discussing the short title of the bill invented a number of alternative names for it, such as “the Private Savings Banks No-confidence Bill,” “the Foreign Investors’ Benefit Bill,” and the “People’s Savings Take-over Bill.” Sir Basil Arthur (Opp., Timaru) described the bill as “nothing less than a sell-out to the trading banks.” The Minister of Housing (Mr Rae) said it was obvious more money could be saved

and one way to achieve this was by providing more savings facilities. Mr Lake said the reason for the extension of the date for the commencement of trading bank savings branches from September 1 to October 1 was that it would be too difficult to pass regulations needed for the operation of the act before September 1. No Staff Troubles He said he had been told the Waikato Savings Bank was going to open nine new branches and was having no trouble in getting staff. There were difficulties in making a decision on the new zones for trustees banks, but he

hoped to announce the Government’s decision later this week.

Mr G. A. Spooner (Opp., Wanganui) said there was nothing to stop the trading banks paying interest on current accounts. There were no objections to this. The objections were ■ to savings branches. On the extension of the zones for trustee banks, Mr Spooner said, the present 25mile radius for the Wanganui and New Plymouth trustee banks meant a great deal of the area was in the sea. Mr H. L. J. May (Opp., Porirua) said he could see no justification for failing to extend protection to the Wellington Savings Bank. The Minister of Agriculture (Mr Taiboys) retorted that the Government had received no complaints from the promoters of the Wellington bank.

Mr R. J. Tizard (Opp., Pakuranga): They didn’t complain after sentence was passed because there was no alternative. If the trustees had wanted any other conditions they would not have got establishment approval. Spending Delayed Mr Kirk said an increase in the volume of small savings did not mean people were foregoing the right to consume, they were merely postponing it. The pattern was generally for a number of small deposits to be made, followed by a substantial withdrawal. He said the Opposition would do everything in its power to delay the bill hy constitutional means. Dr. A. M. Finlay (Opp., Waitakere) asked whether it was intended that no-one should have more than one account.

It was common practice among lawyers to have several savings accounts in the name of the partners for clients’ money which was not needed for a period, he said. Mr H. J. Walker (Govt., St. Albans) charged that the Labour Party was against small savings, and had claimed that saving stifled the economy of the country. Suggestion Resented Mr A. J. Faulkner (Opp., Roskill) said the Government had no mandate from the people to allow trading banks into the savings field. If the people could be in favour of it, and if the Government tidied up the present schedule, then the Opposition might think more kindly of it. Mr Lake said he objected to the suggestion that the Savings Committee was against the extension of savings facilities. The committee had made no such statement. The implication that they had was unprincipled. On a point of order raised by Mr Kirk, Mr Lake withdrew the word “unprincipled.”

Mr Lake: I deplore the debating tactics of one member of the Opposition.* Mr Faulkner: I deplore the Minister’s way of replying. Mr Lake said the National Government did not require an express mandate from *he people. There was no indication that the people were against this move. They had not supported the Opposition.

Mr P. Blanchfield (Opp., Westland) described the bill as “dangerous, damaging, and deceitful, and what is more, it is dictatorial.” At 9.15 p.m., Mr J. R. Harrison (Govt., Hawke’s Bay) successfully moved the closure to debate on the short title. Three successive divisions followed on this and a move by Mr W. A. Fox (Opp., Miramar) to have operation of the legislation postponed for three years—until October, 1967. The Opposition lost each vote, 39-33. The debate was proceeding when the adjournment motion was taken.