Will Continue N.Z. Branches

Northern Advocate, 18 October 1947, Page 7

Will Continue N.Z. Branches

The Victorian Premier (Mr Cain) practically ignored the bank nationalisation issue, in his Labour policy speech at Northcote. His clash with the Legislative Council was the major issue of the State election, he said.

“Opponents of the Labour Government have had to find some excuse for the high-handed and unreasonable at-

titude of the council in refusing supply,” he saidi “Hence an issue has been made of the Commonwealth’s banking proposals. This matter is one over which a State Parliament has no control. “Any decision by a State Parliament can in no way influence or control the Federal Parliament.” Mr Cain said one of the first actions of a re-elected Labour Government would be to prepare legislation to widen the franchise of the Legislative Council.

The council should'not have power to set at defiance the will of the people’s house, the Legislative Assembly, and cause an election every time the undemocratically-elected council bowed to the dictates of powerful vested interests outside Parliament.

Clarification of the attitude of the Government to- certain banks not wholly within Australia was given today by a high Government legal authority.

Referring to the New Zealand branches of Australian banks, he said that the Commonwealth Bank, having acquired the shares of the banks- in question, would continue their business in New Zealand subject to the consent of the NeW Zealand Government. No negotiations to this effect had been made as yet, but there had been some personal talks between the Prime Minister, Mr Chifley, and the Prirpe Minister of New Zealand, Mr Fraser. During Mr Fraser’s recent visit the matter was referred to “in passing.” (“We have not discussed the question of the nationalisation of the banks be-' tween our Governments or between representatives of the two Governments.” said Mr Fraser, when the message from Australia was referred to him.)

In the case of the three banks with London directorates the English, Scottish and Australian Bank, the Union Bank of Australia, and the Bank of Australasia—an effort would be made to induce London shareholders to sell voluntarily.

If they refused to negotiate the Government proposed to acquire the physical assets of these banks at a just price. As to the three overseas banks named in the bill—the Bank of New Zealand, th e Bank of China and the Comptoir National d’Escompte de Paris, it is understood that the Commonwealth Bank will acquire their physical assets in Australia voluntarily if possible, but still acquire them. In either event the Commonwealth Bank will act as their agent in Australia.