CHALLENGE TO STATE

Hawera Star, Volume LI, 13 September 1930, Page 5

CHALLENGE TO STATE

BANKS f AND TAXAT|ON

MEMBERS’ STRONG OPINIONS

ADVICE TO GOVERNMENT

(By Telegraph—Special to “The Star.”) WELLINGTON, Sept. 1:3.

A deputation including Reform, United and Labour members strongly criticised the action of the Banks in passing on the increased taxation and urged Hon. E. A. Ransom yesterday, as head- of the Government, to take prompt action. It was introduced by (Mr H. E. Holland, leader of the Labour Party, who suggested that If the Banks were approached by the Government, they might listen to reason; otherwise the deputation desired-the Government to take definite action.

It was estimated by 'Mr F. Langstone (Waimarino) that the 10s extra charge for customers’ accounts: would probably produce £200,000 to £400,000, while the additional note tax was £IOO,OOO. The Banks’ action was described by Mr A. Harris (Waitemata) as a gesture of defin due e"' aga ins t the "Government and the deputation felt justified in appealing to the Government,, because it had the majority of cUreetors on the Bank of New Zealand, ime largest of the associated Banks. If Mr Ransom took action it would be applauded’ from end to end of the country.

Mr F. Lye (Waikato) pointed out that in good times- and bad the Bankspaid huge dividends, and he was assured on good authority that their privilege of charging internal exchange paid for the cost of running all the' -Banks.

“There was a time when the Banks had to be saved,” declared Mr J. S. Fletcher (Grey Lynn), “but the time is rapidly approaching when the country will .have to be saved from the Banks. ’ ’ He appealed to the Government to take the strongest measures. The possibility of retaliating action was discussed by the next speaker, Mr H. G. Dickie (Patea). Ho had no 'objection to the Banks raising their overdraft rates, as they -were buyers and' sellers of credit, but their latest move was outside banking practice. Possibly the Government -could l raise the rates of interest on the Post -Office Savings Bank and increase the maximum beyond £SOO. He did not knew whether it was feasible 1 -to issue Treasury notes, but the Government could put on a bold front.

Mr M. J. Savage (Auckland West) characterised the Banks’ action;as a challenge to the State. They seemed to be sheltered and “cheeky, ” taking advantage of their position because they had become so tweaithy and in a way the rulers -of the State. The Banks should be asked to explain. - Mr Ransom (aeting-Prime Minister) replied that the Government had placed extra taxation on! all sections and had endeavoured so to arrange it that the burden was placed fairly and that-the larger institutions could not pass it on. The Banks had been asked to bear a fair proportion. He thought the Government was; justified in asking the associated Banks the exact number -of their customers, so that it would be seen whether they were carrying any of tho extra tax or not. They should carry their share in . the same way as tho rest of the eommunity/but he noticed- that in good times and bad their shareholders did not -suffer;, ra;ther the other way. The deputation- wag quite justified in making its representations. Just how far it was possible to go was another matter. Any endeavour on the part of the Banks or other large institutions to get out of the impost and place it oru the shoulders _of those already taxed should receive the 'Government serious consideration and the matter would be submitted by him to Cabinet. !