RECORD BATTLE EXPECTED

Otago Daily Times, Issue 26544, 20 August 1947, Page 5

RECORD BATTLE EXPECTED

Bank Nationalisation Plan FORCES ALREADY BEING MARSHALLED Rec. 9.30 p.m. SYDNEY, Aug. 19. With the Cabinet decision to nationalise the private trading banks only three days old, both sides are marshalling their forces for the greatest political and legal battle in Australian history. In the event of a challenge to the validity of the legislation now being drafted, it is understood that the Commonwealth will be represented by the King’s Counsellors Messrs C. A. Weston, H. H. Mason, J. B. Tait, P. D. Phillips and F. G. Menhennitt. The King’s Counsellors Messrs E. G. Barwick and Dr E. G. Coppel will appear for the Associated Banks and Mr E. R. Reynolds, K.C., president of the Law Council of Australia, for the Bank of New South Wales. With tke existence of strong Government majorities in both Houses of Parliament, it is assumed that the measure will be passed. It cannot be challenged, however, until the Government does something which the banks contend is beyond the powers of the Commonwealth Constitution. Dr H. V. Evatt is conferring with financial advisers in Sydney, and the talks will continue for several days, after which a Bill will be drawn up. Meanwhile, the Federal Council of the Liberal Party will consider launching a nation-wide campaign against the Government proposals. Public meetings of protest will be organised within a few days in every city and country town or shire hall in all the states except West Australia. Amongst possible moves already tipped by Canberra correspondents is one that the Government plans to save millions of pounds by refusing to take over many costly private bank buildings. An undisclosed constitutional authority in Canberra has stated that there is no law which would compel the Commonwealth to take over everything the banks own and that it need not concern itself with their capital investments.

Keen Interest Shown in New Zealand Parliament

Parliamentary Reporter WELLINGTON, Aug. 19. Lively interest in the proposal of the Australian Commonwealth Government to nationalise private trading banks was taken in the House of Representatives to-day, when notices of questions dealing with the subject were given by three members. After they had been asked, the Prime Minister, Mr Fraser, said there was part of one of them that concerned another Government, and as that part involved interference in the internal affairs of another country it should not go on the Order Paper Mr T. L. Macdonald (Oppn., Wallace) gave notice of his intention to ask the Minister of Finance, Mr Nash, if it were the Government’s intention to introduce legislation in line with that announced in Australia. In a note to his question, Mr Macdonald said a cable message from Ottawa on November 9, 1946, had reported the New Zealand representative at the International Labour Office conference as having informed the Toronto District Labour Council that nationalisation of all banks in New Zealand would be a fact in the very near future, thereby indicating that the matter had received some consideration.' Mr F. Langstons (Govt., Roskill), in association with Mr W. T. Anderton (Govt., Auckland Central), Mr. T. E. • Skinner (Govt., Tamaki), and Mr P. Kearins (Govt., Waimarino), gave notice that he would aslj the Minister whether, in view of the decision of the Australian Government to nationalise all private trading banks in the Commonwealth, he would introduce legislation empowering the Bank of New Zealand to be given the sole right

of issuing bank-created credit to clients who required bank overdraft accommodation within the Dominion. In a note to their question, they said that there were four Australian trading banks and one English trading bank engaged in operating a chain of branch trading banks throughout the Dominion, whereas the Bank of New Zealand had not a chain of branch banks operating throughout the Commonwealth of Australia. Mr W. H. Fortune (Oppn., Eden) and Mr J. R. Hanan (Oppn., Invercargill) gave notice that they would ask the Minister if the New Zealand Government had in any way been consulted by the Commonwealth Government concerning the nationalisation of the Australian trading banks. They also asked if it was the intention of the New Zealand Government to take over branches of Australian banks trading in New Zealand, or If it would permit Australian banks in New Zealand, after being nationalised, to compete with the Bank of New Zealand. Mr Fraser asked for leave to refer to the latter question. The Leader of the Opposition. Mr Holland: ’ Provided it goes on the Order Paper. Mr Fraser said that he appreciated the enthusiasm shown by both sides of the House. There was part of tne last question which concerned another Government, and it was not the New Zealand' Government’s business what the Australian Government did, ana consequently it was not approached in the matter at all. Personally, he thought that part of the question should not go on the Order Paper, because it involved interference with the internal affairs of another chuntry Mr Holland: Would you like to answer the other part of the question right away?—(Laughter.)