I move that the Bill be now read a Second Time. As the House is aware, the Trade Loans (Guarantee) Act gives the Minister for Industry and Commerce power, subject to certain conditions and subject to the sanction of the Minister for Finance, to guarantee or grant loans proposed to be raised for the purpose of carrying out a capital undertaking or carrying on a manufacturing undertaking where the expenditure of such loans in the manner proposed is calculated to promote employment or a reduction in the price of essential commodities. The powers given under that Act expired on 24th March last and the purpose of this Bill is to continue these powers for a further period of five years. It is considered desirable that some machinery should exist, both during and after the emergency, which would enable financial assistance to be given in cases which might not in the ordinary way appeal to the commercial banks or the Industrial Credit Company. In fact, no such case has arisen recently and no guarantees have been given. The Act has remained more or less in suspension since the outbreak of war, but I do not think it desirable that we should allow it to lapse altogether.
Guarantees were given under the Act in 98 cases. In 43 cases, the loans were repayed in full; in 24 cases, it was necessary to appoint receivers, the companies having ceased to operate and it being desired to recover what was possible for the Exchequer; and there are 31 undertakings actively carrying on with the assistance of trade loans. I do not think I am asking the House to commit itself to anything in asking it to continue the Bill for another five years. In so far as it is necessary to make any special provision to deal with the financing of industry in the post-war period, it will have to be on some other basis than this; but rather than allow this Bill to lapse altogether, I am proposing to have it continued for a period of five years, even though it may not be, in fact, necessary to avail of its provisions during the emergency.
