‘Humbug’ BNZ bill defeated by Govt

Press, 6 October 1988, Page 6

‘Humbug’ BNZ bill defeated by Govt

PA Wellington Opposition moves to restrict foreign ownership in the Bank of New Zealand were “classical humbug,” said the Government last evening.

It used its Parliamentary majority to defeat the Opposition - sponsored Bank of New Zealand (New Zealand Ownership) Bill on a 40-29 division. The bill would have limited foreign ownership of the bank to 24.9 per cent and ensured any sale of shares was by public placement. But Mrs Margaret Austin (Labour, Yaldhurst) said the bill was an “illogical attempt at interventionism.” “In fact, it can only be described as classical humbug.” Mrs Austin said the bill, introduced by Mr lan McLean (Nat., Tarawera), did not define the strategic nature of the bank. “Is it any different from any other trading bank? No, it is a trading bank giving financial services in the same way as any other,” Mrs Austin

said. "Has it provided lowinterest loans to people of limited means? No, it is a commercial enterprise behaving like any other bank.” Mrs Austin said the Opposition was unable to point to the strategic nature of the bank. What they are, in fact, advocating is a fire sale.” Mrs Austin said the bill would close off potential Australian bidders. “They are advocating perpetuating .Fortress New Zealand, and they want us to legislate to turn our backs on success in the international marketplace.” The bill was an insult to foreign investors. The Leader of the Opposition, Mr Bolger, said the Government was willing to sell the bank to “any tyrant around the

world who has enough money.” “What we say is, that is wrong,” he told Parliament. “There are certain strategic assets that New Zealand ... must retain

control of here in New Zealand and in New Zealand hands.” The Government had said it would sell to anybody. The criticism the Government had of the bill was not based on principle. “The criticism they have levelled is that it may reduce the price. So it comes back to a question of sovereignty versus money. Mr Bolger said sovereignty meant nothing to the Government, “and then everything is for sale, from the land up.” “We say, ‘We are on the side of New Zealand, we stand four-square in support of the sovereignty of our country.’ “We want Wellington to make the decisions, not London, not Libya, not even Canberra or ' Sydney.”