PM Transcripts

P. M. No. 15/ 1959.
CO IIONWEALTI{ BANKING CORPORATION
Statement in the House of Representatives by the Acting Prime
Minister. The Rt. Hon, J. McEwen, M. P.
While the Commonwealth Banking Corporation will not be
formally established until the legislation has been proclaimed,
which will not be until about the end of the year, it is necessary
to proceed at once with the appointment of the Board of the
Corporation, so that the re-organization necessary to give effect
to the legislation and to constitute the Banking Corporation can
be carried through. This action will include planning of such
things as staffing and accommodation, arrangements for the
commencement of business by the Commonwealth Development Bank and
the integration of the Commonwealth Trading Bank, the Commonwealth
Savings Bank, and the Commonwealth Development Bank into the
framework of the Commonwealth Banking Corporation.
Cabinet has decided to appoint Mr. Warren D. McDonald,
to be Chairman of the Board of the Comr. monwealth Banking
Corporation, which is being set up under the Banking Legislation
recently passed by the Parliament.
Mr. McDonald is Chairman of the Australian National
Airlines Commission which operates T. A. A. He will in due course
retire from that position, but, because of the various problems
confronting T. A. A. during the coming months by reason of the
introduction of its new fleet of Fokker Friendship and Electra
aircraft and associated matters, he has consented to carry on his
work with T. A. A. at least until these particular problems have
been dealt with. Cabinet has also decided to appoint Mr. E. B. Richardson,
as Managing Director of the Commonwealth Banking
Corporation and Mr. A. N. Armstrong as Deputy Managing Director of
the Corporation. Mr. Richardson is at present Deputy Governor of
the Commonwealth Bank and Mr. Armstrong is General Manager of the
Commonwealth Trading.-Bank.
I should add that under the legislationthe Board of the
Commonwealth Banking Worporation will comprise eleven members,
of whom it is required that eight shall be neither directors nor
officers of the Bank nor members of the Commonwealth Public Service.
The legislation provides that the other three members shall be the
Secretary to the Treasury, the Managing Director of the
Commonwealth Banking Corporation and the Deputy Managing Director
of the Corporation. With the appointment of the Chairman, therefore, seven
other members of the Board have still to be appointed.-The
Government intends to make these appointments at an early date.
CANBERRA, A. C. T.
6th May, 1959.