LIQUOR TRUST FINANCE

Press, Volume XCII, Issue 27753, 2 September 1955, Page 12

LIQUOR TRUST FINANCE

Debenture Issues To ' Be Permitted AMENDING BILL INTRODUCED (From Our Parliamentary Reporter) WELLINGTON, ( Sept. 1. To give individuals an opportunity to invest in their local licensing trusts, debentures for £5 or more may be issued by the trusts, in terms of the Licensing Trust Amendment Bill, introduced in the House of Representatives today. When the Leader of the Opposition (Mr Nash) mentioned the difficulty experienced by trusts in raising funds, the Minister of Justice (Mr J. R. Marshall) said it was not proposed to make any provision for finance other than by the issue of debentures. “If the local people really want to have a local trust, the amendment will enable them to provide the money,” said Mr Marshall. There was already provision for local trusts to raise money by mortgage, and possibly, although it was not specific, by debentures. The bill made that specific, and also made it clear that a trust could make a debenture issue in the same way as a local authority. “It brings this form of investment clearly within the scope of people who may wish to make a small contribution towards the establishment of a local trust,” said Mr Marshall. “The local authority may guarantee the debentures, and this will ensure they are a good investment for the people putting their money into the trust.

“A Local Matter” "I want to malqe it clear that it is the view of the Government that a local trust may be a local matter,” said the Minister. “Although the Government in the past has given some limited guarantee to local trusts of one-sixth of the capital element, and will honour any undertakings given, it is the view of the Government that the local trusts should be a local matter, and that if the local people want them, they should support them.” The existence of two district trusts, which had not been able to begin operations within the time fixed when provisional licences were granted, was being threatened, said Mr J. M. Deas (Opposition, Otahuhu). He asked the Minister to see that, if the bill was Sassed, reasonable time would be given > allow those trusts to raise finance. Replying, Mr Marshall said the short answer was “No.” The Government had a different policy for district trusts. Mr Nash suggested that power should be given to existing trusts which had funds, to invest them in other trusts. The bill provides for wards for the election of members, this having particular application to the Clutha and Mataura districts. A further amendment provides for the winding up of a local trust, either voluntarily, or in open Court, in the same way as for a public company. An Opposition voice: And the Government knew. “A promise by another Mr Sullivan, who used to sit over there,” said Miss Howard, waving toward the Ministerial benches. “We felt we were, in honesty, bound to keep it.” Mr Sullivan: Some of the councillors were very dithery about it. “Something has been done in the bill in clearing up the question and taking it out from the local body,” said Miss Howard. “It is much more suitable, and now the question of penal rates is over to the unions to work out, and in that respect progress has been made.”