Making Bill “Acceptable”

Press, Volume CIII, Issue 30588, 3 November 1964, Page 1

Making Bill “Acceptable”

fParliamentary Reporter) WELLINGTON, November 2. Major amendment’s to two clauses of the Reserve Bank of New Zealand Bill is expected when this measure reaches its committee stages, probably next week. Notification of the amendments may well be given by the Minister of Finance (Mr Lake) during the second reading debate on the bill, which may be reached tomorrow.

The relevant clauses, 37 and 38, authorise the GovernorGeneral in council, on the recommendation of the Minister of Finance, made after consultation with the Reserve Bank, to declare any persons whose principal business is banking to be trading banks for the purposes of the new act, and to apply any provisions of the act to any persons ’who as a substantial part of their business in New Zealand, accept deposits or cany on any banking business.”

This could bring many firms, such as stock and station agents, and companies which provide hire-purchase facilities, directly under the

control of the Government through the provisions of the act The Government could impose upon them a reserve ratio system, could fix permissible interest rates, and could enforce some control over their investments. Since the bill was introduced on October 16 there has been considerable reaction against it by businessmen. The managing-director of Wright. Stephenson and Company (Mr C. U. Plimmer) has been among those who have deplored the possible consequences. The amendments will remove many of the “teeth” from the provisions, and will make it much more acceptable to business enterprises.