STATE ASSISTANCE

Otago Daily Times, Issue 23895, 24 August 1939, Page 14

STATE ASSISTANCE

EXHIBITION AND HOUSING CONSTRUCTION COMPANIES FINANCE THROUGH TRADING BANK (From Our Parliamentary Reporter) WELLINGTON, Aug. 28. Arrangements to assist two companies with temporary finance through a trading bank have been made by. the Government. This statement was' made in the House of Representatives to-day by the Acting Prime Minister (Mr P. Fraser). One of the companies is the New Zealand Centennial Exhibition .Company, and the other is a housing construction company. Mr. Fraser's statement was in the form of a written reply to a question by Mr H. S Sr Kyle (Opposition, Riccarton), who asked whether the Government had guaranteed the accounts of % any individuals or companies' at any of the trading banks, and, if so, whether it was proposed to make details of the guarantees public. . " In general, it would not be desirable for the State to enter into commitments in the nature of a guarantee of an account of an individual .or. a company at any bank," said,the Minister. " Special arrangements have, however, been made with a trading bank to assist., first 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 of'Undertaking the erection of houses f?rjh£ State in Auckland and Wellington along mass-production lilies in order to cope with the acute- shortage of houses in these centres. In to the latter. I may say that itM« iect to very stringent conditions, including one that so long as the State, is involved in any contingent.liability no dividends shall be paid to the shareholders." "'."".'