Government Will Not Oppose Bank Bill

Manawatu Times, Volume LIII, Issue 6670, 25 July 1928, Page 7

Government Will Not Oppose Bank Bill

ONLY REQUIRES ASSURANCE PROPOSAL SOUND ONE AND PROPER SAFEGUARDS MADE Defectives Bill Read Second Time The chief measure brought down In the House of Representatives yesterday was the London and New Zealand Bank (Limited) Bill, which was read a second time, and promptly' sent to a Committee of Selection to determine to which Select Committee it should be referred for scrutiny. Considerable interest was manifest as to the identity of the promoters of the proposed new institution, and as to what guarantee these 'was in regard i) its finance. Information, however, was not forthcoming, and members had to be content with the bare ■ assurance that the general interests of the public were adequately safeguarded. Other matters dealt with during the afternoon were the Minister of Finance’s notes on negotiations for a trade treaty between Japan and New Zealand, and the annual report of the Valuation Department. • In the evening the House resumed the debate on the second reading of the Mental Defectives’ Bill, and the same antagonism of opinion was apparent as at the earlier stage of the debate. After members had discussed the measure for four hours, the second reading was moved and agreed to, and the Bill was referred to the Public Health Committee. The House thereupon adjourned at 11.30 p.m. till 2.30 .p.m. to-day. "»

NEW BANK NOT LIKELY TO BE ANY WILD CAT SCHEME. WELLINGTON, Last Night. The House of Representatives met at 2.30 p.m. to-day. The second reading of tho London and Bank of New Zealand Bank (Limited) Bill *was moved by Mr. J. G. Eliott (Oroua), who offered no arguments in favour of the measure. Tho Leader of the Opposition, Mr. H> E. Holland, asked what attitude the Government was going to adopt toward' the Bill. If the Government was going to allow the Bill to pass or was going'to facilitate its passage, ■ the ' situation would be vastly different froin whit it would be if/the Government was going to take up an antagonistic attitude. • If tho Government would say it was not going to oppose tho Bill then members who had some interest in tho matter would know what course to take. The Hon. W. Downio Stewart, Minister of Finance, said the Bill was a private onej and was not sponsored by the Government. His own view was that the correct time to- discuss the merits of the Bill was on the report of the Select Committee. Ho had intimated to Mr. Eliott that if a responsible body of citizens wished to start a new. bank and incorporated in tho Bill the ordinary legislative provisions for the protection of the public, as well as satisfied tho committee that capital and banking facilities were reasonable, it was not the object of the Government to obstruct the Bill in, any way. i It was for the committee to examine the Bill. If those citizens wishing cto start the now bank satisfied the House that their proposal was sound and , that proper safeguards were incorporated in the Bill, then that concluded the matter as far as the speaker was concerned. „ ' ,

Circumstances Different. Mr. W. A. Veitch (Wanganui), said ho had looked up records •of earlier banking legislation and he was not sure the circumstances were as the Minister of Finance had said. He was concerned mainly with what the effect would bo if tho Bill became law. It was on an entirely different footing from previous banking legislation. If tho Bill passed in its present form according to its wording tho Government would have no say in tho matThe Colonial Bank Bill of 1874 was an entirely different one. from tho present'one, for tho capital had already been ■ subscribed and the bank was already established. Parliament know who the people were who wore behind the‘measure, but there was no such information in regard to the present venture.-

The House had already had an assurance in regard to the bank and were satisfied that the general public interest was safeguarded. People would like to know who were ’behind vS© new bank, and what guarantee there was in regard to its finance. Mr. Eliott: “Do you oppose the legislation!” . . Mr. Veitch: “I am just expressing my opinion about it. lam disappointed that tho honorable member has' not given tho House this information. ”/ If they wore to break tho banking monopoly, he continued, the banking laws of the country should be widened. He was not convinced the Bill saf guarded public interests and he suggested that it be withdrawn until full information had been given. If the Bill passed, an exclusive right Would be conferred for some unknown person to start & new bank, which would be worth a great deal of money —he estimated, between £90,000 and £160,000 in five years. These ’.terms were far too generous, and the promoters should, before asking for legislation to be passed, satisfy the House that the money had been subscribed;, One fresh babk would not me.-'t th* banking needs of the country. He had read in the press that the bank would be independent of other banks. But that was not provided in tho Bill. If it became an established fact he predicted it could not remain independent of other banks. He could not see any justification for the Bill. -■ “Unnecessarily Setvous.”

Generally speaking, he thought th* unimproved values of land in the Dominion were too high, but any attempt to rush revaluation would, only result in further inequalities. : ' By the Governor-General's message the Austipneers’ Bill, and the Divorce and Matrimonial Causes Oonsolidatioj Bill were introduced and read a first time. / ■; 1 ' i, „. ■ The, House rose at 5.30 p.m. till 7.31 p.m. , , . Mental Defectives Bill, i When the House rosiimed at 7.30 the Leader, ;o£ the Opposition resumed the debate on the Mental Defectives Bill. Ho said that all must take an interest in tho';.subject of the Bill." That; subject was highly technical and the House which contained only one medical man should deal with it most carefully. Ho suggested that the evidence to bo taken before the Public Health

Mr. W. S. Glenn (Eangitikei) said that Mr. Yeitch was unnecessarily nervous about the Bill, and that without giving tho promoters a chanco to explain their position before the committee. Tho Minister of Finance was not going to permit any wild cat scheme to come into this country. What he (Mr. Glenn) was anxious to see was an extra million of capita) brought into New Zealand which can bo profitably invested. The bulk of

it would bo,now capital. He did noi care what-Government it was/but ho did want to know what view the Minister took o£ it, because ho did not. want to see an inflow of now capital into the country. : The Bill Was then read a second time, and referred to a Committee of Selection. ; Sir ' John Luke (Wellington North) gatre notice , of intention to . introduce the Music Teachers' Registration Bilk Mr. E, J. Howard (Christchurch Sguth) gavo : notieo of intention to introduce the , ‘ Workers'. Compensation Amendment Bill. .Replying to.-Mr. T. D. Burnett (Tpmuka), the .Minister of Agriculture said that his Department was making active investigation into diseases among sheep t in the South Island,. and was endeavouring to minimise losses as much as possible. V ' Trade Treaty With Japan. ‘ The Minister of Finance laid on the > table notes bn negotiations for a .trade treaty between Japan and New Zealand.; He said the chief benefit arising from such trading arrangement would bo a reduction of the Japanese duty on Now Zealand; butter of a half-penny per pound. V. i • The Leader of the Opposition asked what, if any, reciprocal concessions had been made to Japan. 1 Messrs. G. W. Forbes (Hurunfli) and E. P. Lee (Oamaru) complained that members were not afforded information regarding such papers before they were brought down. The latter asked what statutory authority the Minister had to enter into such an arrangement.' ■. Mr. J. A, Lee (Auckland East) said it was extremely unwise to trust ah irresponsibly Ministry with toe much bargaining power. Members now could npt -have over much confidence .in “Coates and Confidence.’ ’ If bargains were to be made the House should make them. • Mr. A. Harris (Waitemata) expressed anxiety as to what ■ terms may have been made with Japan . If any preference was to be given it should be given to European nations. * * • ; 1 J Mr. "V bitch wanted to knojw whether New Zealand or Japan had got the bob ter of the bargain. There were many reasons why New Zealand should treat Japan generously. : ,'’’ v ' The Minister of Customs, Hon. W. Downie Stewart, replying, said that this new arrangement had been made ao.as to obtain more favourable termy for Now Zealand butter. Ho had been approached by Waikato dairymen, and others had asked him to endeavour' to obtain terms as favourable, as. ' those enjoyed by Canada. The result .of negotiations was that Now Zealand was now in a better positionl than Australia, - and some Austra*. lian newspapers had been reproaching themselves for. allowing New Zealand to get ahead of Australia in such an important matter. Japan already enjoyed the advantages wo extended to favoured nations, and there were no special provisions for further reciprocal advantages, although Japan would ante matically share in anything furthpl that might be allowed favoured nations. The whole object of the arrangement was to improve .the position- of our butter exporters. Valuation Department’s Be port. The Minister of Lands, the Hon. A. D. M'Leod, laid on the table the annual report of .the Valuation Department. The debate' on the report continued for the remainder of the afternoon, the majority of speakers complaining of the inequalities in valuation., ' . ‘The Minister, in reply, stated that hi* Department was fully aware, of the difficulties that existed, and were steadily working to remove injustices. He hoped to make further progress in this direo-' tion by a revision of the Apt this se* sion, ■ •'

Committee should bo printed and circulated amongst members before the Bill became law. The medical profession, was divided on the subject of mental defectives and ho thought tho Minister had not given the subject sufficient attention. He dealt at length with'tho question , of heredity, / but the measure had not-given- sufficient weight to the influence of environment. This, the speaker thought, had much to do with the mental condition of many people, and mentioned industrial conditions in Great Britain as contributing greatly to the mental condition of many of those who, might be classed as mentally defective. He saw danger in the power given to compile a record of mental defectives, as onco a person’s name got on to that list it i would bo most difficult to get it pff. : : . - > He wanted ,to know what intorpre- : tation tho Minister put on tho term “anti-social conduct” as mentioned in tho Bill. .Was any limitation to bn placed upon itf ' A Most Serious Clause. The most serious clause was that which proposed to give power to steri- , lise mental defectives. Ho did not think the Minister had made out sufficiently his case in this connection. Hecould not And that advocates of sterilisation were decided about it. He quoted authorities in support of this contention. It was also clear that sterilisation- was no protection against the spread of ■venereal disease. ' Quoting authorities to show that mental defectives were born as often of normal parents as of degenerates ho argued that: much of what was - ascrib- • cd to, heredity was really tho result of wrong environment. Speaking as - a layman ho preferred segregation to sterilisation., •' Considering the largo part environmeat played in the development of children' he - urged tho House to turn its attention to improving conditions in which " children were • born and brought up. In this rospoct ho quoted what was being done - in, Denmark where they had special classes and special schools for backward children. The Minister: “They have sterilisation in Denmark.”, Mr. Holland replied that he was at the moment discussing conditions under which children were being brought , up. 'Ho urged the Minister to use whatever influence he had with the Government to sco that this Bill was not translated, into law until there had been the* fullest inquiry into all aspects of the; question. ' Mr. Lysnaz Disappointed. Mr. W. D. Lysnar (Gisborne) was disappointed with the Bill. He had looked for something better. It was a. leap in the dark. It should not be rushed through and should not be pass- , od except on most complete ■ evidence. There were' too many facilities for getting ■ people into mental institutions and not sufficient to get them out. ' * Mr. B. Wi Smith (Waiinarino) said he felt that if the Bill passed into law its operation; should be deferred for at least one year.' This was the lost sea-; I ion of' this'Parliament and he depre- ~,: cated passing a measure of such import in the dying, hours of a Parliament. Alter another election the people would be better able, to make up their minds about it. -. i . \

Mr. H. O B. Mason. (Eden) said the whole purport of the Bill, was to prevent certain persons becoming parents. 'That outlook was limited and ihcom- - plete and the Bill was disappointing in that, it did not make provision for helping these weak people becoming strong-willed enough to earn their own living. ~' MrT H. Holland; (Christchurch East) congratulated the. Minister on'bringing forward this admirable BUI based on tbe report of Doctor Gray. Mr. E. J. Howard (Chrictchuroh \ South) said the Bill was an ambulance J at the loot of a cliff instead pf a fence at ■ the top to prevent people falliui* over.' • ■ ■' . ' • Minister of Health Beplies. The Hon. J. A. Young, in reply, said that outside criticism had bn the. whole been more helpful than that given inside the House. He thought much of the criticism arose from tbe fact thaa members had misunderstood the intentions of the Bill, which was an honest. - effect based bn the advice of competent men. The Bill aimed at providing means to study individual weaknesses. • At present there were undoubtedly many in gaols and many in asylums Who should not bo there. Put in special institutions set part for eases of their type. ... ~■■■■., ■■... . With regard to backward children* lie wopld bo prepared to consider anj ■. amendment which would safeguard their interests. # ' Dealing with the question of steribsa< itioh, he said it was not expected that nho adoption of these operations would result in an immediate reduction of mental defectives but that together. With other reforms they would bring about the desired result. Mr. Holland: “Does the Minister pro- . pose to stand by tho sterilisation clauset” The Minister said he would not make a definite declaration at that moment. Ho would like to get it through. It was not a party measure, and if the House wanted it it should go through because sooner or later it must come, In time if not at once the country must experience the benefit because mental defectives generally were very prolific* .. He moved the second reading which was agreed to, and the BUI was on the motion of tho Minister referred to the iPublio Health Committee where the Minister said he was prepared to consider any suggestions made to perfect the measure. , ' i Tho House rose at 11.30 p.m. till 2.3# p.m. to-morrow. , . .