§ Mr. Arnold Shawasked the Minister of Public Building and Works what proposals he has affecting the financial arrangements between the Government and the Zoological Society of London.
§ Mr. MellishPartly because of their heavy rebuilding programme in recent years the Zoological Society of London face a shortage of funds which they could not make good by normal commercial borrowing. The Government have therefore arranged with the Governor of the Bank of England for the Bank to lend the Zoological Society up to £375,000, subject to Government guarantee to be given by me, the loan to be finally repayable not later than 1st July, 1970. It is the intention that the Society should avail themselves of the loan only in the last resort, but it should ensure their continued operational stability for a period sufficient to reinforce the Society's own efforts to increase their resources and for an examination of their operations by management consultants with a view to putting their finances on a satisfactory footing over a longer period. The Government have also agreed to the deferment of Service of the Government loan made to the Society in 1964.
A Supplementary Estimate will be presented in due course to obtain the authority of Parliament for the assumption of the contingent liability arising out of the guarantee.