BANK OF NEW ZEALAND

Hawera Star, Volume L, 26 July 1930, Page 5

BANK OF NEW ZEALAND

GOVERNMENT’S SHARE OF CONTROL. (By Telegraph—Press Association.) WELLINGTON, July 25. Moving in the- House of Representatives to-day the second reading of the Ban lcof New Zealand Amendment Bid, Mr F. Langstone said it was proposed that the Government’s four representatives on the board of the bank should be completely untrammelled by any business interests. It was unfortunate that it had not been original]y stipulated that these representatives should not be shareholders in any other bank. T'he greatest problem in New Zealand to-day was money. If finance could be provided plenty of work could also be provided. It' was also proposed that full voting powers should be restored to these directors. The Bill further provided that the Government’s participation in the profits should be restored from one-seventh to one-third. This would increase the return to the Government by £58,500 annually and would represent 5.y per cent, interest on £1,000,000. It would constitute no injustice to- anybody. M r M. J. Savage emphasised] the im•portence. of the Government’s representatives not being interested in any other financial company. It was essential that advances from the bank should not be liable to influence from any other institution.

Mr W. D. Stewart said the position as outlined by Mr Langstone was not altogether accurate. As a matter of fact-, by t-lie Act of 1920 the Government had received more from the Bank of New Zealand, both in profits and in shares, than it was entitled to, but an independent investigation had shown that this was not detrimental to the -interests of the Dominion as a whole. _ Mr Stewart added that it would be difficult to find men possessing the necessary qualifications for the -directorate of the bank who were not in any _way interested in any other financial institution. The Bill was read a second time. Mr H. G . R, Mason moved the second reading of the Rating Amendment Bill, but the debate was interrupted by the adjournment. Tlie House rose at 5.30 p.m. till 2.30 p.m. on Tuesday.