CIVIC THEATRE.

Auckland Star, Volume LXI, Issue 186, 8 August 1930, Page 9

CIVIC THEATRE.

METHOD OF FINANCING.

BANK OF NEW ZEALAND'S

MONEY.

LABOUR MEMBER'S QUESTIONS

(By Telegraph.—Parliamentary Reporter.)

WELLINGTON, this day,

The method of financing the building of the Civic Theatre, Auckland, was commented upon 'by Mr. H. G. R. Mason (Auckland Suburbs) in the House of Representatives this morning. He alleged that the theatre was built with over £200,000 of the Bank of New Zealand's money, and said the strange that not a single penny piece of money went into the project. It was extraordinary, said Mr. Mason, that a company should be formed without any money' going into it. Apart from the large amount of money concerned, did anyone find a bank anywhere else lending money purely on guarantees'! He added that farmers did not get much consideration, even if the guarantees were good ones.

Another feature of the transaction was that in consideration of guarantees being given, 35,520 £1 shares had been issued —preference shares at that—carrying interest at 10 per cent, which was a pretty safe consideration. It was curious, also, that the shares were taken in the name of a trustee company. Was it not strange that the company itself did not undertake this trust work? Presumably, the company had a charge for doing trust business, and presumably the company was losing its commission in this case. The only inference one could draw was that when the trustee was a person and not a company the matter was less liable to come under public notice.

Mr. Mason said lie liopecl the Prime Minister would make inquiries as to how tlie Government representative oil the Bank of New Zealand consented to the use of the bank's money in this unusual channel.