Clash over super. bill

Press, Volume CXV, Issue 33815, 11 April 1975, Page 2

Clash over super. bill

(N Z Press Association) WELLINGTON, April 10. The Government and the Opposition clashed over legislation in Parliament today for the first time this year, when two amending bills were introduced.

The Leader of the Opposition (Mr Muldoon) was critical of both bills, saying they were contrary to Labour Party policy of doing more in Parliament and less by Order-in-Council.

He asked why the principles of the former Prime Minister (Mr Kirk) had been overthrown.

The bills were the Reserve Bank of New Zealand Amendment Bill, which brings private superannuation schemes under the Reserve Bank Act, and the Friendly Societies Amendment Bill, which increases certain monetary limits. Mr Muldoon said it was like drawing teeth to get information from the Minister of Finance (Mr Tizard). The Reserve Bank Amendment Bill, Mr Tizard said, included private superannuation funds that had been approved as alternative or restricted schemes within the meaning of financial institutions.

“The Inland Revenue Department has oversight at the moment,” he said. “This

changes it to the Reserve Bank.” The bank will be empowered to set public security ratios for funds and schemes.

Another clause empowers the bank to require financial institutions to supply information about transactions for statistical purposes.

Mr Muldoon said the bill was of far-reaching importance, and should be sent to a Select Committee, so that those affected could give evidence.

He said that possibly confidentiality could be affected. “It will probably provoke an immediate and adverse reaction from private superannuation funds,” he said. Mr Tizard said there was no change as far as confidentiality was concerned. Other superannuation funds or schemes would be added by Order-in-Council, he said. “Where are the principles of the former leader being overthrown?” Mr Tizard asked. Mr Kirk had demanded more respect for Parliament. After the bill had been given its first reading, Mr Muldoon moved that it be sent to the Statutes Revision Committee. Mr Tizard said he saw no need for the bill to go to a committee, and the Opposition called for a division — the first of the session.

The Government won, 45-30.

When Mr Tizard introduced the Friendly Societies Bill, he began: “This bill may unfortunately cause an argument along the lines of the previous one.”

Mr Muldoon replied that Mr Tizard obviously had a slightly guilty conscience.

The bill increases the limit on the amount of assurance for which a friendly societymay contract with any person from $5200 to $6200, and increases the annuity, allows members to hold more than the limit of $3OOO in a loan fund, and provides that various other monetary limits may be fixed by Order-in-Council.