State Bloc Prepared To Fight Federal Plan To Nationalise Banks

Otago Daily Times, Issue 26608, 3 November 1947, Page 5

State Bloc Prepared To Fight Federal Plan To Nationalise Banks

Rec. 11.15 p.m

MELBOURNE, Nov. 2.

If the Liberal Government is returned at next Saturday’s Victorian elections, it will form a bloc with South Australia and West Australia to fight the nationalisation of the banks. Announcing this, the Liberal leader, Mr Hollway, said that Victorian Liberals would be prepared to take the banking fight to the Privy Council. It would also go to the High Court and Privy Council on the question of uniform taxation which, Mr Hollway said, should be abolished. “ If we take office, we shall immediately confer with Mr Playford, the Premier of South Australia, and Mr McLarty, the Premier of West Australia, to show Canberra a display of strength,” he concluded. This statement followed the South Australian Government’s announcement that it would challenge the Federal Government’s Bill to nationalise private trading banks as soon as the measure had passed both houses and received the Governor-General’s assent. .

This startling development in the controversy over the Bill was announced by the Premier, Mr T. Playford. He said that South Australia’s case against the validity of the measure would be: —

First, that already the High Court had ruled that the Commonwealth could not compel State Governments to bank with the Commonwealth Bank.

Secondly, that this, in effect, meant that State Governments must have the. right to deal with private banks. Thirdly, that if the Banking Bill became law it would destroy private banks, thereby robbing State Governments of their right to bank with them.

Fourthly, that in the financial agreement which was part of the Federal Constitution, there was an implied covenant on the part of the Commonwealth not to destroy deliberately the trading banks. Fifthly, that if the Commonwealth did destroy private banks'it would extinguish one of the most important constitutional rights of the States. Mr Playford said: “My Government has decided that the interests of the State require that the very important constitutional rights of South Australia should be maintained by the State in proceedings in the High Court. The Crown Solicitor has accordingly been instructed to begin action by issuing a writ in the High Court immediately after the Banking Bill has been passed by both Houses of the Federal Parliament and has been assented to by the GovernorGeneral. Reports submitted by the Attorney-general, Mr Ruddall, and Crown Law officers show that South Australia is entitled to a declaration by the High Court, and to an injunction against the Commonwealth restraining it from an apprehended breach of contract, and against the Federal Treasurer restraining him from giving any notices under the Bill when passed; or taking any other steps to acquire private banks.”