HEAVY PENALTIES

Wanganui Chronicle, 17 October 1947, Page 5

HEAVY PENALTIES

INTENTION TO GO AHEAD WITHOUT DELAY Recd. 8.20 p.m. Canberra, Oct. 16 The Banking Bill will be proclaimed and will become operative as soon as it receives Royal assent, said a Government spokesman today. Correspondents believe that the Government realises that its electoral fate may depend on the time factor, and that it is determined to push on with its plans to have a nationalised banking system functioning as soon as possible. Opposition members claim that this note of urgency can be detected in the section of Mr. Chifley’s speech dealing with the acquisition of bank assets. This section places a limitation of two months upon the banks after they have been invited to make an agreement with the Commonwealth Bank for the transfer to the Commonwealth Bank of their businesses. A feature of the Bill which has particularly stung the Opposition is the Government offer that if a bank enters into a voluntary agreement for the acquisition of its business it is entitled to receive exemption from taxation of the amount paid under the agreement. Mr; Chifley’s speech made no reference to heavy penalties provided in the Bill itself for breaches of the banking legislation once it becomes law If a urivate bank refuses to vest in the Commonwealth Bank such assets it possesses as are not Australian, it h liable to a penalty of £lO,OOO for each day on which it contravenes the order. Unless persons holding share certificates which have become vested in the Commonwealth Bank under the legislation deliver uu their share certificates within two months, they are liable to a penalty of £lOOO a day.

A private bank which continues after it has been given notice that it is not to cairy on banking business ir Australia is liable to a fine of £lO 000 for each day it offends. Directors officers are instructed to assist ip the transfer of business to the Commonwealth Bank and are under a penalty of £lOOO a day if they offend. If the offence is committed by the bank as such, the penalty ; s £lO,OOO a day.