APPOINTING OFFICIALS

New Zealand Herald, Volume LXX, Issue 21639, 3 November 1933, Page 11

APPOINTING OFFICIALS

SUBSEQUENT ELECTIONS NEW POWER FOR BOARD MR. COATES' SUGGESTION [l?\ TELEGRAPH—PRESS ASSOCIATION'] WELLINGTON. Thursday The provision in the Reserve Bank Bill for 1110 election of the successor to the first governor and deputygovernor hy a, general meeting of shareliolders was considered at length in the House of Representatives this evening. Jho Leader of the Opposition, Mr. M. J. Savage, moved an amendment that the governor and deputy-governor ho appointed by the Government on each occasion. J - Poison (Independent—btrattord) said he, agreed that the governor ol the hank should at all tunes he appointed hy the State, hut he was not satislied with the wording °i Air. Savage's amendment. Ho him" soil would subsequently move an amendment which he considered would meet the posit ion more-satisfactorily, r , , ■'in tend men t was do"y «V«) votes to L's. The Minister of Finance, Mr. Coates then suggested the postponement of ho consideration of the clause. Jlo said he had m mind an amendment AWueh would set out that the hoard of directors should recommend the appointment of the governor and the depntvgovcrnor. lr, would then he for the Governor-Goneral-in-Couneil to say whether these appointments were acceptable or not. Serious Thought Given After the other clauses in (he hill had been passed, the House in Committee returned to the matter. Mr F. Lye (Government—Waikato) said he and other Government members had given a great deal of thought to this matter. He had two suggestions to make (1) that the governor and deputy-governor should bo appointed by the Governor-General-in-Council on the recommendation of the Minister alter consultation with the board; (2) that the governor be appointed by the State and the deputy-governor by the board. In the event of the latter suggestion being put into effect, he suggested the governor should have a deliberative and a casting vote and the deputy-governor should bo without a vote. If the former suggestion were adopted, lie suggested the voting should bo in the usual manner, the governor having a deliberative and a casting vote. Mr. Lye mentioned lie had studied the machinery of 17 reserve banks in other countries, and in 15 instances the governor was appointed by a State head and not by the shareholders. Mr. Poison said lie was satisfied the community would definitely prefer that the State should have control of its own machine. Public Confidence Needed Mr. Coates said his suggestion that the appointments should bo recommended by the board of directors and approved by the Governor-General in Council would maintain that element of removing any suspicion that politics were participating in the running of the bank. Many people would say that because an appointment was made by the Governor-General in Council it was a political appointment and attention should be paid to this aspect, because the success of the bank so greatly depended on the public being satisfied that politics were not unduly entering into the management. Mr. Savage: Unless it suits the board, no man will get its recommendation. Mr. Coates: If he is not suitable to the Government, or if a deadlock arises, the matter will be dealt with by the Governor-General in Council. Mr. Savage: Why not make' it a straight-out State appointment? Mr. D. W. Coleman (Labour—Gisborne) asked what was the difference between the proposed amendment and the- original clause. Mr. Coates- said the meeting of shareholders would make its recommendation and go home. It would not be possible to negotiate with the shareholders as it would with the- directors. Mr. Coates suggested that the clause should be allowed to go through with tho amendment he offered, and he undertook that before the bill went on to tho Legislative Council he would see what could he done to give effect as nearly as possible to the wishes of members. This course was agreed to. JUDGE'S INVESTMENTS [T!Y TELEGRAPH—PRESS ASSOCIATION] WELLINGTON, Thursday Surprise was expressed by .Mr. A. E. Ansell (Government —Chalmers) in the House of Representatives to-day at the amendment moved by Mr. R. A. "Wright (Independent—Wellington Suburbs) proposing that a tribunal should be set up in the event of a dispute between the banks and the Government on the price for the gold hekl by the banks. Mr. Ansell said Mr. Wright's amendment. asked for an impartial tribunal, but he would like to ask if the Chief Justice was a shareholder in the Bank of New Zealand. Mr. A. .1. Stall worthy (Independent —Eden): You are making a very serious statementSpeaking later, the Hon. W. Downie Stewart (Government —D uned i n West) said that surely Mr. Ansell must know that in the circumstances of a Judge having shares in the Bank of New Zealand/he would refuse to act on the tribunal.