NATIONAL BANK OF NEW ZEALAND
SIR AUSTIN E. HARRIS'S SPEECH
THE sixty-fifth ordinary general meeting of the National Bank of New Zealand, Limited, was held on June 3oth at 8 Moorgate, London, E.C.
Sir Austin E. Harris, K.B.E. (the Chairman), said that the year had again been one of change and difficulty for the banks. Some of the changes and difficulties had weighed heavily with them, a sterling bank whose business was confined solely to New Zealand, and the board therefore considered that the result of the year's working was satisfactory. Moreover, they felt that, provided there was no. further encroachment by Government measures on banking business, they should be able to participate in the returning prosperity of the Dominion. They had already paid an interim dividend at the rate of 4 per cent. per annum and proposed to make a final distribution at the same rate.
Last year he had referred to the somewhat sweeping legislative measures introduced by the Government dur-n..; its first year of office—making changes which widely affected both the economic and social life of the Dominion—chief among them the Primary Products Marketing Act and also the Mortgagors and Lessees Rehabilitation Act, which aimed at the reduction of monies secured by mortgage to the value of the security. In August next the Prime Minister intended to introduce a National Health and Super- annuation Insurance Bill and it was also understood that another measure to be introduced would deal with the tevision of the basis of taxation. That latter was a matter of great importance and interest to the bank and in their opinion was overdue. On numerous occasions they had drawn attention to the inequity of the arbitrary method by which the banks were assessed for income tax. Their profits were calculated on a basis which bore no relation to their earning capacity. . The banks had of course represented their case to the Committee which the Prime Minister had appointed to examine the whole question of taxation, and they were hopeful that they might be afforded some alleviation when the Bill came before the House.
Prices were good today and trade was active but one could not regard the lavish expenditure without some concern, for there would come again in its due course a period of reaction and lower prices, when trade would find it difficult, if not impossible, to bear the additional costs which were being imposed on it by legis- lation.
The report was unanimously adopted.
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