I move the Second Reading of this Bill. The object is to prolong the period by another year in which a guarantee may be given under sub-sections I. or II. of Section II. of the principal Act. It will be recollected that the Banking Commission referred to the Trade Loans (Guarantee) Act, and pointed out the fact that the Act was about to expire; and it was a question whether it was advisable for the Government to continue this measure of support to business credit. The matter consequently became pressing. The Banking Commission recommended that the Government should withdraw this Act and terminate the guarantee, but there is a recognition that it would be necessary to continue it for a short period in order to carry out the commitments of policies already initiated. The situation is that there are loans for which guarantees have been practically given. There are certain others where the Advisory Committee has recommended a loan and where the two Ministers concerned have indicated their sanction, but where the legal formalities have not yet been completed. There are other cases where the applications are already in an advanced stage, and such advanced stage would be defeated unless this Act were carried forward for another year. There are certain other applications that have passed the Advisory Committee, but have not yet been considered by the Departments concerned. In addition, there are, at least, three outstanding and fairly prima facie cases in which a considerable time has been spent and some expenditure incurred in getting the preliminary details settled. It was thought reasonable these cases should go before the Committee, and have a decision taken on them, and in consequence it is necessary to have the period over which guarantees may be given extended for a year.
TRADE LOANS (GUARANTEE) (AMENDMENT) BILL, 1927—SECOND STAGE.
Question: "That the Bill be now read a Second Time," put and agreed to.
Committee Stage fixed for Tuesday, 12th July, 1927.