Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . .

Legislative Assembly for the ACT: 1997 Week 9 Hansard (4 September) . . Page.. 2954 ..

MR WHITECROSS (continuing):

This situation came up again in May 1992 when Rosemary Follett was again Chief Minister and Treasurer and she introduced a Bill which was called the Canberra Advance Bank Limited (Merger) Bill 1992. In moving that Bill the then Chief Minister, Rosemary Follett, said this:

... the main purpose of the Bill is to facilitate the integration of the Canberra Advance Bank with the Advance Bank of Australia. The Canberra Advance Bank was created a wholly owned subsidiary of the Advance Bank in 1986.

The Advance Bank has sought legislation for the transfer of banking activities and assets and liabilities of the Canberra Advance Bank in the Australian Capital Territory and New South Wales, being the only jurisdictions affected. New South Wales is introducing similar legislation to meet the request of the Advance Bank of Australia. The Bill is required to be enacted before 1 June 1992 as the Canberra Advance Bank must surrender its banking licence to the Reserve Bank of Australia by that date.

The proposed legislation will vest the undertaking of the Canberra Advance Bank in the Advance Bank of Australia. All existing contracts and obligations will remain unchanged, except that the Advance Bank will now become the contracting party in respect of ongoing Canberra Advance Bank contracts. There are many ACT account holders who are affected by this banking integration. Passing the Bill will assist these customers because they will not be put to the inconvenience of having to renegotiate their banking arrangements. There is no transfer in the ACT of real estate, shareholdings in subsidiaries and other holdings of shares; consequently there are no tax or duty implications for the ACT.

The Advance Bank of Australia is meeting the costs associated with the preparation of this legislation. Madam Speaker, I now present the explanatory memorandum for the Bill.

Mr Speaker, in response, the then Leader of the Opposition and shadow Treasurer, Mr Kaine, said this on 21 May 1992:

The Opposition has no objections to this Bill. It is clearly, in effect, a machinery Bill to allow a change in the management structure of the Canberra Advance Bank. It is a companion to similar legislation to be enacted in New South Wales. It is legislation that is necessary, and it must be in place by 1 June because the Canberra Advance Bank loses its current licence on that date. We find nothing on the face of it that could cause any concern.

Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . .