On the last occasion, I raised the question of the provisions of Section 2 (1) of the Bill. I do not want to go into the arguments or repeat anything I said then. I think the Parliamentary Secretary indicated that he would examine the provisions to which I referred. Perhaps he is in a position now to indicate the necessity for giving moneys to be advanced under sub-section (1) priority over existing charges on property of the Turf Development Board.
Public Business. - Turf Development Bill, 1957—Report and Final Stages.
Question—"That the Bill be received for final consideration"—put and agreed to.
Question proposed: "That the Bill do now pass."
I have had the points raised by the Senator examined by the experts of the Department of Finance. The position is and has been that the only lender to the board hitherto was the Central Fund and no charges on the board's property were made to secure the repayment of such advances. I take it that they were not considered necessary. Now the Bill enables the board to go to other sources for capital. It enables charges to be made on the board's property to secure the repayment of such loans. What the section does, in fact, is enable the Minister for Finance to give priority to the claims of such outside lenders vis-a-vis the Minister for Finance.
In any event, they cannot be put into any position inferior to that of equality. A section exactly similar to this was inserted in the E.S. Act, for the purpose of enabling the E.S.B. to raise money in similar fashion, but, in fact, when a prospectus was issued, there was no reference to any such charges at all because they were not considered to be necessary.
I am advised that, in respect of any particular issue which may be necessary, the terms and conditions will be decided upon in the circumstances of the time at which the money is being sought. The net point in the section is that the Minister cannot be put into a superior position to these outside lenders and the best he can achieve under it is to be put on a footing of equality. If any difference will be created between claims of the Central Fund and other lenders, the difference will be, and must be, in favour of the outside lenders. I think the Senator's apprehensions in respect of such outside lenders are not well founded. I take it this assurance should allay whatever fears he may have had in the matter.
Question put and agreed to.