RESERVE BANK

Dominion, Volume 34, Issue 119, 13 February 1941, Page 9

RESERVE BANK

Failure To Appoint New

Governor

DR. MAZENGARB’S COMMENT

The Prime Minister must surely know that the worst inferences were being drawn from his failure to appoint another governor to the Reserve Bank and from the withholding of the report made by the former governor, Mr. Leslie Lefeaux, said Dr. O. C. Mazengarb addressing a meeting of National Party supporters at Karori, Wellington. People were wondering who was to succeed Mr. Lefeaux; was the position being kept open for someone, asked Dr. Mazengarb. Before vacating oilice Mr. Lefeaux appeared to have made a report which hail been disclosed to the caucus of the Labour Party but had not otherwise been published. Why did the Government not publish' this report? Mr. Lcfearx was the servant of the whole of the people and not a section of it.

There might be circumstances under which a State servant should report confidentially to Cabinet, but it was surely a new and dangerous departure in a democracy to have a report macle or published to a caucus and withheld from the people or the people’s representatives in Parliament. From the comments on that report which were made by the member for Christchurch South, they’ knew that wh-a-t Air. Lefeaux said to the Labour members was not acceptable to them.