PM Transcripts

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PRIME MINISTER
FOR MEDIA 4 OCTOBER 1979
JOINT STATEMENT BY THE PRIME MINISTER AND THE
PREMIER OF SOUTH AUSTRALIA.
THE BANK OF ADELAIDE
The Premier of South Australia, Mr David Tonkin, called on
the Prime Minister and Mr Philip Lynch, Minister for Industry
and Commerce, representing the Acting Treasurer, in Melbourne
today to clarify the position of the Bank of Adelaide with
regard to Commonwealth Government policies.
The Prime Minister and the Premier noted that the commercial
arrangement between the Bank of Adelaide and the Australia and
New Zealand Banking Group Limited had been entered into after
full consultation with the Commonwealth Treasurer, the then
South Australian Premier, Mr Corcoran, and the Reserve Bank of
Australia. Those arrangements included the provision of massive
financial support to the Bank of Adelaide by the major trading
banks and the Reserve Bank and an understanding that the Bank
of Adelaide would seek a merger with a larger Australian trading
bank. They were entered into against the background of longstanding
Government policy in respect of the overseas ownership
of banks operating in Australia. The arrangements successfully
stabilised the position of the Bank of Adelaide and ensured that
it remained in a position to meet fully its commitments.
The Prime Minister said that the policy with regard to foreign
ownership of Australian banks was undoubtedly a matter that would
be examined carefully by the Committee of Inquiry into the
Australian financial system. It would be inadvisable for the
Government to make an ad hoc change in that long-standing policy
before receipt of the Committee's report and the Government's
detailed examination of any recommendations that might be made in
this area. The Commonwealth Government therefore has concluded
that the current. policy relating to overseas ownership of
Australian banks should be followed.
Against the background of the existing commercial arrangements
between the Bank of Adelaide and the Australia and New Zealand
Banking Group Limited and the long-standing policy with regard
to foreign ownership of Australian banks, the Prime Minister
said that, as foreshadowed by the Treasurer in his statement
of 9 June 1979, arrangements are in train for the necessary
consents and authorisations under Commonwealth legislation to
be obtained so that the proposed merger arrangement between the
Bank of Adelaide and the Australia and New Zealand Group Limited
could proceed.