PROVISIONS OF BANK BILL

Taranaki Daily News, 20 October 1933, Page 7

PROVISIONS OF BANK BILL

GOVERNOR’S APPOINTMENT ELECTION OF THE DIRECTORS FEES PAYABLE INCREASED SHARE CAPITAL £500,000 By Telegraph—Press Association. Wellington, Last Night. The Reserve Bank of New Zealand Bill, read for the first time in the House of Representatives, sets out that first the governor and deputy-governor are to be appointed by the Governor-General in Council for a term of seven years. Thereafter these officials are to be elected at a general meeting of shareholders for a term of seven years but the election must be approved by the GovernorGeneral in Council. Of the directors first appointed by the Governor-General in Council one shall retire on July 31, 1936, one on July 31, 1938, and the third on July 31, 1940. The member to retire in any year is to be determined by the board by ballot, but the members will retire in rotation. Subsequently all the directors appointed by the Governor-General in Council are to hold office for five years. No person who is not a shareholder can be elected as a shareholders’ director. The first shareholders’ directors shall be appointed by the GovernorGeneral jn Council and one will retire on June 30 in each year, starting from 1936. As each director retires a new director shall be elected for a period of five years by the shareholders at a general meeting. ’ Not more than one member of the board shall at any time be a director of any other bank carrying on business in New Zealand or elsewhere. Every-mem-ber of the board is eligible for re-ap-pointment or re-elction upon his ment.The original Bill provided that the aggregate amount of fees paid to directors, other than the governor and de-puty-governor, should not exceed £l5OO in any year. < The new Bill increases the amount to £4OOO. Salaries and allowances paid the governor and deputygovernor are now to be fixed by the Governor-General in Council. The amount of salary or allowance paid to each of these officials shall not be computed by reference to the earnings of the bank nor shall either be remunerated wholly or partly by any form of commission. , ’ As was provided in the first Bill, the original capital of the bank shall be £500,000 in shares of £5 each, which shall be offered by the Minister of Finance at par for public subscription in New Zealand.

IMPORTANT STAGE REACHED PROGRAMME OF THE GOVERNMENT MIXED RECEPTION GIVEN BILL. (By Wire— Parliamentary Reporter.) Wellington, Last Night The introduction of the Reserve Bank of New Zealand Bill into the House of Representatives last evening marked an important stage in the session, for the measure is one of the important features Of the Government’s programme for financial and economic rehabilitation. The measure differs considerably from that which was introduced in the dying hours of the last session, but which was not proceeded with and the explanation of its provisions by the Minister of Finance (Rt. Hon, J. G. Coates) was followed with close attention by a full House.

In addition to explaning the provisions of the Bill, which are explained fully elsewhere, Mr. Coates defended the Government’s action in appropriating to itself any profit arising from the taking over of the gold reserves. The reception accorded the Bill was a mixed one, but anticipations of a late sitting were not realised, the House according the first reading to the Bill a few minutes after 10 o’clock. The main opposition to the Bill came from the Labour benches and from the representatives of the farming constituencies. The main point made by those opposed to the Bill was that the Central Bank should be controlled by the State. In the afternoon members devoted their attention to the Bank of New Zealand Amendment Bill, introduced by Mr. F. Langstone (Labour, Waimarino). The Bill aims at giving the State greater control in the affairs of the Bank of New Zealand. It was accorded the second reading just prior to the dinner adjournment