SECRECY OF ACTION

New Zealand Herald, Volume LXXI, Issue 21893, 31 August 1934, Page 12

SECRECY OF ACTION

DOMINION LEGISLATION GOVERNMENT'S INTENTIONS NO LEAKAGE OF INFORMATION [BY TELEGRAPH SPECIAL REPOTtTKU] WELLINGTON. Thursday A suggestion that information had leaked out as to the Government's intended action regarding the operations of the group of investment trust companies before the Companies (Special Investigations) Bill was introdueed to Parliament was made by Mr. R. Semple (Labour —Wellington East) during the debate 611 the Imorest Supply Bill in the House to-night. Mr. Semple asked the Minister of Finance, Mr. Coates, if there was any truth in a report to the effect that a fortnight before the bill came down, certain brokers had approached shareholders of the companies warning them what was going to happen. Mr. Semple said these brokers must have been informed what the Government was going to do. "What is the point?" Mr. Coates interjected. "Is it that the Government had given the tip to those people?" Mr. Semple said the point was that certain things were alleged £o be known to brokers in opposition to the group of companies, and that these persons had taken advantage of the information to canvass among the shareholders. Mr. Semple wondered if there had been some leakage. Members of the House would like to know. He thought the Minister had been perfectly right to keep a close hand on everything right up to the end. "I can assure the hon. member that no information came from any official source," said .Mr. Coates. "Mr. Barton and Mr. Park went to Australia, and that fact was noted by several very shrewd people. No doubt they were on the qui vive." It was decidedly not the Government's position to say anything about these companies, added Mr. Coates. Proper official inquiries were being made. Whether any of the acts of the companies were within the law or whether they were not would be decided in the proper place. As far as it was practicable, nothing official had been given out to a soul before the bill had been brought down. The Government's secret had been kept to fewer persons than could be counted on one hand.

"I know that a number of queries were made, even in this city, as to why this and that was happening," concluded Mr. Coates, "but everyone was requested to ask no questions."

A report of evidence heard before tho Commission in Sydney last week appears on page 14.