Bank Move Criticised

Press, Volume CIX, Issue 31907, 7 February 1969, Page 1

Bank Move Criticised

(N.Z. Press Association! DUNEDIN, Feb. 6.

The new moneytransfer system to be introduced by trading banks in New Zealand has been condemned by . the Labour member of Parliament for St Kilda and a former president of the Trustee Bank Association of New Zealand, Mr W. A. Fraser.

Mr Fraser said that he was satisfied that this was the beginning of the introduction of the giro system into trading banks.

“The Government has been conveniently silent, ,and it

should be condemned for letting the trading banks move in on it,” he said. “The system is far too important for the Government to allow a monopoly of the system by private interests.” Mr Fraser said that people who had studied the system overseas believed that when it was fully developed it could mean savings up to ssom a year. “If the trading banks are permitted to monopolise the giro system this profit will go into the pockets of the private shareholders and a substantial amount will end up overseas.” Mr Fraser said that the giro system was installed in about 60 countries overseas, most of them with it based upon the Post Office with all its advantages of communication. “It should have been installed into the Post Office

partnered by trustee banks and other financial interests many years ago. “It could have been the stimulus the Post Office Savings Bank desperately needs.” In the last four years the excess of deposits over withdrawals in the Post Office Savings Bank has slumped by over ssom, he said.

“The present moves by the trading banks will give them an overwhelming advantage, and it could cost the taxpayers dearly.”

Mr Fraser said the statement by the trading banks last year about the introduction of a new computerised system for handling accounts quicker should be recalled. “They said that ultimately the new system would provide a better system than that which was known as giro.”

(Earlier report. Page 3)