Banks Will 'Do Well'

Press, Volume CIV, Issue 30686, 27 February 1965, Page 1

Banks Will ' Do Well'

(N.Z. Press Association)

WELLINGTON, February 26.

Once again the Australian banks had revealed the strength of their powers over the Government, the Leader of the Opposition (Mr Nordmeyer) said today.

He was commenting on the new system of bank charges announced by the chairman of the New Zealand Bankers’ Association (Mr J. G. Souness). “This decision to charge 4d for each transaction, together with 2d stamp duty, means a charge of 6d for every cheque drawn,” said Mr Nordmeyer. “As exchange was required only when remitting amounts to other areas, it is obvious the banks are going to do very well out of this manoeuvre.

“It may suit some business firms but it is certainly an imposition on the private individual with a bank account,” he said. The president of the Auckland Chamber of Commerce (Mr D. T. CliftonLewis), said the chamber was very concerned that the banks had not consulted the business community before fixing the new system. Its concern was aggravated because the Bankers’ Association had promised last March to consult the Associated Chambers of Commerce before deciding on the activity charge, he said. Mr A. R. Mackay, presi-

dent of the Canterbury Chamber of Commerce, personally welcomed the abolition of inland exchange. He said he had long been an advocate of doing away with inland exchange on cheques, realising, however, that to recompense themselves for the loss the banks would have to recoup it in other ways. “Knowing the internal requirements for handling cheques, the banks have my sympathy,” said Mr Mackay. “I am quite sure that the

banks’ new charges, which may appear to be expensive, over-all must be a saving to the bank customer. The time involved in recording and paying inland exchange is so excessive compared with the amount of money involved that there must be a saving to the customer.”

Mr Mackay said there was also the fact that many firms failed to add the exchange to cheques, and that was a direct loss to the receiver, who had to pay it.