THE BANK ISSUE

Evening Post, Volume CXXXIX, Issue 135, 9 June 1945, Page 9

THE BANK ISSUE

"MANIFESTLY ABSURD"

MANUFACTURERS'VIEW

Unable to align statements made by Mr Nash, Minister of finance, in October, 1941, with the present* ambition of the Government to nationalise the Bank of New Zealand, the New Zealand Manufacturers' Federation, in a protest sent to Mr. Nash, describes as "manifestly absurd" any attempt to justify the Change of heart by pointing to the intervention of. a Change in "the bank's policy or in other circumstances." -The federation . states that its protest emanates from its re-, cent council meeting in Wellington, where remits of protest were received from manufacturers' associations at Auckland, Wellington, Christchurch, and Dunedin, , ; Declaring itself against the Government's proposal "to take over. & business which has been well conducted and has served the public interest so well," the federation gives its opinion that the "present set-up and.'organisation Of the bank is ideal and is better suited to the needs of the community than, any new organisation Which maybe set Up.'' j The federation goes oh to draw the Minister's attention to his Hansardrecorded statement in October, 1941, When he expressed satisfaction with the bank's services, and pointed to its limitation of powers through the establishment of the Reserve Bank. Attention is also directed to.- a further statement in the same copy of ttahsard, wherein Mr. Nash described, the present banking arrangements ar "infinitely better" .than would , apply with a State^-oWhed bank.: The taking oVer of -the Bank of New Zealand was. part of the Labour Party's stated policy prior to its eleCtioh, the federation proceeds, "but after the Labour Government haft been ih power- a number of years and, no doubt, you had ah opportunity as Minister of Finance of Weighing the advantages and disadvantages of the proposals you made the statements to which we now draw your attention. It would seem manifestly absurd fdr members of your party to suggest now that there has beeh such a chf_ng.e in the bank's policy Or in other circumstances as to justify such a change of Opinion, ahd to Warrant the Government taking over the bank." .

Suggesting that Mr. Nash's viettj as expressed in i.941, was a correct View; the federation states that if it i_v still borne in the Government's mind, As it should be, then the Government cannot proceed "with its present prdposal without laying itself open td charges of "failing to give due regatta all the relevant circumstance!.."