STATE BANK PLAN

New Zealand Herald, Volume 81, Issue 25047, 10 November 1944, Page 6

STATE BANK PLAN

MR NASH'S POSITION QUESTION OF POLICY CALL FOR EXPLANATION (P.A.) WELLINGTON, Thursday "It is highly disturbing to find the Minister of Finance, Mr Nash, taking an active part in. securing the passage through the New Zealand Labour Party conference of a revolutionary remit calling for nationalisation of the Bank of New Zealand," said Mr Stronaeh Pater,son, president of the Associated Chambers of Commerce of New Zealand. "Some irresponsible resolutions have emerged in the past from the Labour conference, but it is seldom the public has bee it treated to an account showing one of the principal Ministers of the Crown as one of the prime movers of what is a very important subject to the whole community of the Dominion. An Unanswered Question "What is the public to take from the report that the Minister of Finance seconded the remit?" asked Mr Paterson. "Does this mean that the Government has already decided on nationalisation of the Bank of New Zealand and that evidence of this was provided hv arranging for the Minister oi Finance to second the remit? "Surely it will not be contended that the Minister of Finance, whoever it may he who occupies that office, can today promote a remit at the Labour conference as a private member of the Labour Party and tomorrow, as Minister of finance, consider that self-same resolution on behalf of fhe Government with an impartial, unbiassed mind. It must always be the ease that the opinions and convictions a man holds as a hearer of office in the State cannot be different from those he holds as a private individual. No man can honestly hold views that differ according to whether he dons or doffs the mantle of office. Need lor a Declaration "The situation that has arisen obviously calls for an immediate declaration bv the Government as to whether its already determined policy is for nationalisation of the Bank of New Zealand. If this is not the policy of the Government, then it should be explained why one of the prineipal M misters of the Crown—indeed, the actual Minister whose main portfolio is concerned with this particular Labour Party resolution—was permitted not merely to identify his Ministerial office with the sentiments of the resolution, but actually to second and speak in support of its adoption. The country will require an immediate clarification of this extraordinary and most irregular proceeding. "At the same time, the Minister of Finance and the Government should explain the significance of Mr Nash's change of front compared with his attitude at the Labour Party conference 18 months ago, when it was largely due to his unfavourable attitude that a similar remit was dropped. Does this mean that, the Minister of Finance is now voicing a changed opinion on behalf of the New Zealand Government?" PARTISAN RULE FEAR CONFERENCE VICTORY BUSINESS MEN'S COMMENTS (0.G.) WELLINGTON, Thursday "It is fully understandable, as reported, that the passage ol the resolution through the New Zealand Labour Party conference calling on the Government to nationalise the Bank of New Zealand, caused jubilation among conference members, particularly as it was the Minister of Finance. Mr Nash, himself who seconded the remit," said Mr Frank Wilson, president of the Wellington Chamber of Commerce, tonight. "The conference has obviously scored a great victory over the Government, or at any rate over one of its principal Ministers. "What Mr Nash omitted to say was whether he spoke for the Government. In affairs of State, one can understand rule by the Cabinet, and to some extent rule by the caucus, but it becomes a highly dangerous thing for the welfare of the country when one sees such blatant evidence of rule of the financial stability of New Zealand by a partisan group as represented by the Labour Party conference. "The Government has in the past shown its ability to resist the complete unwisdom, to say the least of it, of nationalisation of banking. People look to the Government now, in spite of what has occurred at the Labour Party conference, to declare its renunciation, as the Government, of this dangerous attempt to launch New Zealand's financial system into the stormy waters of political ineptitude." Mr Andrew Hamilton, chairman of the Wellington Stock Exchange, said the change of attitude in those who had had opportunities of gaining sound financial experience here and abroad seemed to involve a purely political issue, on which comment was inadvisable,. The chief points before the general public at this stage wore the method of payment and the price to be paid to shareholders. "Will payment be made in cash, in which case the amount involved will materially aggravate inflation?" asked Mr Hamilton. "Or will it be made by the issue of Government stock at present rates? Inflation would again result, as well as unnecessary loading of the Government stock market and unfair payment to those who had to sell at a discount. If the bank is to be taken over, a very necessary move is an early announcement of the price per share, as it is to be hoped that there will bo no repetition of the WestportStockton case, where certain persons benefited at the expense of others."