ADDRESS-IN-REPLY DEBATE

Manawatu Standard, Volume LXV, Issue 184, 5 July 1945, Page 3

ADDRESS-IN-REPLY DEBATE

brought n[> to date anil then jobs would have to be provided in hydroelectric; development, river control, land development, afforestation, etc., and we did not want a repetition of past history when orthodox finance had said capable workers should not bo employed on necessary and sound development projects. Members on the Government side of the House believed that the decision to take over the private shares of the Bank of New Zealand was a practical step to the end of safeguarding against that repetition. GOAL OF NATIONALISATION.

Supporting his statement that the bank should be taken out of politics, Mr Combs said the bank’s history showed that its association with politics had been mischievous in part, evil in part, and downright bad in other parts. There bad been an occasion m 1860 when the bank brought about a change in Government. In 1567 its intervention caused the Government to change its mind. In the severities the Bank of New Zealand had set up a dummy land company, the operations of which were called by a South Island editor “another fraud and a swindle.” That editor was called to the bar of the House to justify bis use of the words and the Premier of the day said the editor should go to gaol or he would go out of the House. But the editor did not go to gaol and the Premier remained in the House. Air Combs recalled the time when the bank got the Parliament of the day to cover its losses and said that was another reason for taking it out of polities.

After dealing fully with what had resulted in the Government taking sliares in the bank, Mr Combs said that, in spite of what the Government had done for Ibe bank, when the Government was in difficulties in 1932 the bank bad held a pistol to its bead by insisting on per cent, interest, That had resulted in the standard of living being lowered and the wage tax being increased from 8d to Is in the pound. It had been said that business firms would take their accounts from the bank if the .Stale acquired the private shines but the businessmen of New Zealand bud a very high respect for Government departments. That was shown by the big business estates which bad been put in the care of the Public Trustee. The suggestion that accounts would be withdrawn was all moonshine. On the contrary accounts not now in the bank would flow lo it when the State look it over. That the Government would be fair to the. shareholders was proved by the treatment given to tho shareholders of the Reserve Bank when they received more than that to which they wore justly entitled. The Government, must have a State trading bank, and if instead of taking over the Bank of New Zealand it set up a bank of its own it would be competing against the bank in which it owned half the sliares and against the shareholders who held Iho other half. On the other hand, if the Government .took away its shares from the Bank of New Zealand it would prejudice the other shareholders and remove tho stabilising factor which bad been supporting the bank for 50 years. There had lo he a bank io operate in I lie interests of the people instead of the private shareholders. The taking over of tho bank would be one step further towards the goal of the nalinnalisa-; tion of production, distribution and exchange. The Leader of the Opposition (Mr Holland) moved the adjournment of the debate and the House adjourned at 9 50 p.ni. LEG ISLATIVE COUNCI L.

Moving the Address-in-Reply in the Legislative Council, Mr Connolly sail) that in his judgment (.lie Government proposal to take over (he privately owned shares in the. Bank ol New Zealand was a very wise step. The Government had been exercised for a long lime about the control wielded over individuals and business houses by banking institutions. It was proposed -to place tliat control in the hands of the people themselves. Mr Black, who seconded the motion, "imported Air Connolly s remarks. If, was being said that, when the Government took over [be bank, it would have conlrol of farmers and business people, hut there was no need for worry. This year the bank had mado just, over a million pounds in profits; if a State-owned bank bail made just over a million pounds in profits those profits would go into the common fund instead of into the- pockets of people who had done nothing to earn them.

THE BANK JPUKCHASE

LABOUR MEMBERS’ DEFENCE.

“CUSHION A DEPRESSION.”

(Press Assn.) WELLINGTON, July 4

That New Zealand airmen had probably won more decorations in proportion to their numbers than airmen from any other part of the British Commonwealth was mentioned by Mr E. P. Meachen (Lab., Marlborough) in paying a tribute to the Dominion’s Armed Eorecs when be moved the Address-in-Reply in the House of Representatives tonight. There was a moderate attendance in the public galleries.

Mr Meachen said that New Zealand 'would go on playing her part militarily until a Pacific. victory was achieved. In a tribute to Mr Eraser for liis work at San Eranciseo Mr Meachen said that all New Zealanders, irrespective of political creed, acknowledged the achievements of the Prime Minister at the United Nations Conference, where his name had been on the lips of every delegate as one who formed the spearhead of the movements for the welfare of the small nations and for negotiations leading to a lasting and beneficial peace. Mr Meachen urged the co-operation of all in a national endeavour for the Dominion’s advancement when peace came. Unlortunafely there were some people who endeavoured to make a cleavage between one section of the community and another. Anything which* might tend to disturb our people was against the public interest. Mr W. S. Goosman (Nat., Waikato): Such as taking over the Bank of New Zealand. Air Meachen said the Government with its splendid war effort, with an internal economy which was the envy of the world, with £500,000,000 raised for war purposes without increasing the external debt, and with £11.009,000 of surpluses during the war years, was well qualified for the peacetime tasks ahead. STATE HOUSING. There was a general desire for the lilting of some of the controls which had been necessary under wartime exigencies, and already some stops had been taken in this direction. This relaxation of controls would continue progressively as circumstances allowed, but it had to lie remembered that any hardships experienced by civilians m New Zealand had been less stringent than in any other part of the British Lomniomvealtli and also Jess arduous than the sacrifices of the man wlio put on a uniform. The Government rehabilitation policy was well advanced. Evenin housing, which would he one ol the greatest post-war difficulties the Government would haxe lo solve, the rehabilitation programme was well forward with 70l)u' discharged servicemen satisfactorily housed either in State houses or by loans to buy or build their own houses. The Government intended to push forward with housing construction as rapidly as possible. The only limits were material ones. Money would not stand in the way. Substitute materials would increase the number of houses built. To May 31 ”4,9 CG contracts to build State bouses had been let, and in the main those houses had boon completed. It had been said that housing should be left to private enterprise, but if it had been New Zealand would have had 24,9GG fewer houses today. How had State housing interfered with private building he asked. Opposition members: By preventing private buildings from getting mater-

Mr Meueltcn said it cl id not matter who built the houses, hut il private enterprise wont on at full pressure for the next 10 or 20 years there would still he room for State housing lor particular requirements, such as the man who moved from one centre to another and did not want to build a home.. The Government was doing its best to keep up with the demand tor electrical supply, he continued. Mr A. S. Sutherland (Nat., Hauraki) : You haven’t been too successful. Mr Meachen said there had been a lot of criticism. He quoted figures to show the increased demand for domestic power and said if the Government were to blame it was because it laid enabled the people to purchase power. .BANK 0E NEW ZEALAND.

Jk'ferruig to the Government’s proposal to take over the Bunk of .New /.euluiul, he said that most people praised Air Scddon for what he had done. Before Mr Seddoii left Australia on his last voyage, which he did not complete, he had said lie was returning to New Zealand to nationalise the hanks. There was a lot of publicity in the Press abbot the proposed banking legislation, those opposed to the proposal saw danger in it, blit so did l le —he saw danger to the mercantile linns in that tlie.y would lose their grip on their clients. There was more than the proclaimed fear of Socialism behind the objection to the Government’s proposals—there was fear of loss of profits and power. Mr H. .15. Combs (Bab., Wellington Suburbs), seconding the motion, said the Government was going to do things which lie believed would in the interests of all the people of New Zealand, ior instance taking over internal airways.

Mr M. IT. Oram (Nat., Manawatn): Why ? . . Mr Combs: In the interests of the people of New Zealand. Mr Combs said another measure which would benefit the whole country would be the taking over of private shares in tho Bank of New Zealand.

An Opposition voice: How will that help the war against Japan?

Air Coombs said it was the prerogative of the State to issue legal tender money and create credit, ft was high time the people of New Zealand had a trading bank to implement that prerogative. Mr Oram: Why not establish one of your own ?

Mr Combs said the advantage of buying out privately owned shares was that it would call a halt to the watering of the shares and it would stop, the compounding of the ownership of those shares. A further advantage was that it would take the bank out of politics. ' Opposition laughter and cries of :It will put it into politics. Mr Combs said the taking over of the bank would facilitate tho Government rehabilitation and reconstruction policy; it would help in rehabilitating returning men and women going into their own businesses, and it would assist national development. A State trading hank would help to weather bad times; it would cushion the blow of a depression. An Opposition intorjector: So you are going to have one. Air Combs saiil that with the return of large numbers of servicemen from overseas and with the gradual tapering off of munitions and associated production there would be a need to find many jobs: For some time these jobs would be readily available in bousing and in tho maintenance of national undertakings such as railways, the communications system, roads and bridges, but the time would come when this maintenance Work which Imd fallen behind during tho war would bo