HC Deb 23 April 1936 vol 311 cc437-40

Considered in Committee, under Standing Order No. 69.

[Sir DENNIS HERBERT in the Chair.]

Resolved, That it is expedient—

  1. 1. To authorise the Treasury to make, with a company (hereinafter referred to as 'the company') to be established with the object (among other objects) of providing as a temporary and special expedient a means of affording financial 438 facilities to persons setting up or carrying on business in the areas specified in the First Schedule to the Special Areas (Development and Improvement) Act, 1934, who satisfy the company that whilst having reasonable expectation of ultimate success on an economic basis they are not for the time being in a position to obtain financial facilities from banks or financial institutions primarily engaged in providing financial facilities for long or medium term periods, an agreement providing for the following among other matters, namely—
    1. (a) the payment by the Treasury of the preliminary expenses of the company and of the costs and expenses of and incidental to the winding up of the company;
    2. (b) the payment by the Treasury to the company in every year of the amount expended by the company in administration expenses in that year or of a contribubution of twenty thousand pounds in respect of such expenses, whichever is the less;
    3. (c) the setting aside by the company of reserves against losses, and the payment by the Treasury as a contribution to those reserves of sums equal to the amounts from time to time lent by the company up to a limit of one hundred thousand pounds;
    4. (d) the payment by the Treasury to the company upon the winding up of the company—
      1. (i) in respect of the first million pounds lent by the company (hereinafter referred to as 'the company's first loans'); and
      2. (ii) in respect of any amount lent by the company in addition to the company's first loans (hereinafter referred to as 'the company's additional loans');
      of sums equal to the amount, if any, by which the losses of capital attributable respectively to the company's first loans or to the company's additional loans (as the case may be) exceed the amount of the reserves mentioned in sub-paragraph (c) of this paragraph which is available to meet those losses so, however, that the sum payable by the Treasury under this paragraph in respect of the company's first loans and the sum so payable in respect of the company's additional loans shall neither of them exceed twenty-five per cent, of the amount of the loans in respect of which it is payable;
    5. (e) the payment to the Treasury upon the winding-up of the company by way of refund of the sums paid by the Treasury in accordance with subparagraph (c) of this paragraph of a sum not exceeding one hundred thousand pounds out of the amount, if any, by which the assets of the company remaining after the discharge of the liabilities of the company exceed the paid-up share capital of the company;
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  3. II. To authorise the payment out of moneys provided by Parliament of the sums to be paid annually by the Treasury under the said agreement in respect of the company's administration expenses, the issue out of the Consolidated Fund of any sums required for making any of the other payments aforesaid to be made by the Treasury under the said agreement, and the payment into the Exchequer of any payments to be made to the Treasury thereunder:
  4. III. To make certain provisions ancillary to the matters aforesaid."— (King's Recommendation signified.)—[Mr. Chamberlain.]

Resolution to be reported upon Monday next.

The remaining Orders were read, and postponed.

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