THE BANK ISSUE

Nelson Evening Mail, Volume 80, 9 June 1945, Page 4

THE BANK ISSUE

“MANIFESTLY ABSURD" MANUFACTURERS’ VIEW Wellington, This Day. Unable to align statementes made by the Hon. W. Nash in October 1941. with the present ambition of the Government to nationalise the Bank of New Zealand, the N.Z. Manufacturers’ Federation in a protest sent to Mr Nash describes as "manifestly absurd” any attempt to justify the change of heart by pointing to the intervention of a change in “the bank’s policy or in other circumstances.” The Federation states that its protest emanates from its recent Council meeting in Wellington where remits of protest were received from its manufacturers’ associations at Auckland, Wellington, Christchurch and Dunedin. NEEDS OF COMMUNITY Declaring itself against the Government’s proposal “to take over a business which has been well conducted and has served the public interest so well,” the Federation gives its opinion that the “present set-up and organisation of the bank is ideal, and is better suited to the needs of the community than any new organisation which may be set up.” The Federation goes on to draw the Minister's attention to his Hansard-re-corded statement in October. 1041, when he expressed satisfaction with the bank’s services, and pointed to its limitation of powers through the establishment of the Reserve Bank. Attention is also directed to a further statement in th? same copy of Hansard, wherein Mr Nash described the present banking arrangements as “infinitely better” than would apply with a State-owned bank. NO CHANGE IN POLICY The taking over of the Bank of New Zealand was part of the Labour Party’s stated policy prior to its election, the Federation proceeds, “but after the Labour Government had been in power a number of years and, no doubt, you had an opportunity as Minister of Finance of weighing the advantages of the proposals you made the state- 1 ments to which we now draw your attention. It would seem manifestly absurd for members of your Party to suggest now that there has been such a change in the Bank’s policy or in other circumstances as to justify such a change of opinion, and to warrant the Government taking over the Bank.” Suggesting that Mr Nash’s view as expressed in 1941, was a correct view, the Federation states that if it is still borne in the Government’s mind, as it should be. then the Government cannot proceed with its present proposal without laying itself open to charges of “failing to give due regard to all the relevant circumstances.”