BANK OF N.Z. BILL

Wanganui Chronicle, Volume 89, Issue 277, 23 November 1945, Page 5

BANK OF N.Z. BILL

READ A SECOND TIME IN UPPER CHAMBER ATTACK ON SHAREHOLDERS* DIRECTOR

(P.A.) Parliament Bldgs., Nov. 22. The opinion that Mr. Stronach Paterson should lie asked to resign from the directorate of the Bank of New Zealand, was forcibly expressed by the Hon. W. Grounds (North Auckland) during the second reading debate on the Bank of New Zealand Bill in the Legislative Council this atternoon.

Mr. Grounds said that as long as Mr. Paterson remained in office he would be a national menace in view of the faet that he was entirely opposed to the procedure which had been followed. Mr. Grounds made no objection to the retention of other directors, and paid a tribute to their ability and capacity for the job. He suggested, however, that Mr. Paterson's case was quite different.

"Mr. Paterson has emerged," said Mr. Grounds, "as a protagonist for the shareholders against the Government. proposals, and in doing so he indicated his intention of retiring from the position when this war against the Government proposals was ended. The shareholders have no voice in the management of the bank at the present time, consequently he is there without any shareholders and we are justified in asking what are his credentials for continuance. It is true he has been prominent in connection with Chamber of Commerce propaganda. That does not <iall, as far as my judgment goes, for any great qualifications, neither does it infer possession of outstanding ability. He has no banking directorship experience, that is cleat Has he displayed capacity in business organisation? I don't know who can answer that. Hon. W. Perry: Weil, why ask ft? Mr. Grounds said there was no shadow of justification for Mr. Paterson's continuance in office. None outside the little group with whom he had been associated would have any confidence in him. Later in the debate Mr. Perry said he regretted very much Mr. Grounds' attack against Mr. Paterson. There had been a lot of adverse comment upon the action of the directors in retaining their directorships after the statement made by them at the last annual meeting of the bank. Some of that comment might have been fair, but most of it was grossly unfair.

"It seems to me that it is most difficult for a great many people to appreciate the fact that there are some persons, like Mr. Donnelly, Mr. Paterson, and others, who place their country above their personal inclinations and personal convenience.” Hon. T. O. Bishop (Wellington) said Mr. Grounds' remarks savoured of personal animosity. Mr. Paterson waa entitled to his point of view and should not have been subjected to such an attack. After continuing the discussion tonight, the Legislative Council passed the second reading of the Bank of New Zealand Bill shortly after 10 p.m. by a substantial margin after a division had been called for.