BANK GUARANTEES

Evening Post, Volume CXXVIII, Issue 47, 24 August 1939, Page 9

BANK GUARANTEES

EXHIBITION AND HOUSING

For the purpose of financing the Centennial Exhibition, and to facilitate the State housing programme, the Government has guaranteed certain bank accounts. This information was given by the acting Prime Minister (the" Hon. P. Fraser) when replying to a question asked by Mr. H. S. S. Kyle (National, Riccarton) in the House of Representatives yesterday afternoon. Mr. Kyle asked whether the Government had guaranteed the account of any individual, individuals, or company at any of the trading banks operating in New Zealand; and, if so, whether it was proposed to make public particulars of such. guarantees. "In general it would not be desirable for the State to enter into commitments in the nature of a guarantfee of the account of an individual or a company at any bank," Mr. Fraser said. "Special arrangements have, however, been made with a trading bank to assist, firstly, the New Zealand Centennial Exhibition Company to obtain temporary finance pending the opening of the Exhibition, and, secondly, to assist a company specially constituted for the purpose to undertake the erection of houses for the State in Auckland and Wellington along mass-production lines in order to cope with the acute shortage of houses in these centres. In regard to the latter, I may say that it is subjject to very stringent conditions, in--1 eluding one that so long as the State is involved in any contingent liability no dividends shall be paid to shareholders."