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Thursday, 1 December 1927

Senator GIVENS (QUEENSLAND) asked the Minister representing the Prime Minister, upon notice -

1.   Whether the attention of the Government has been directed to the fact that the Tasmanian Government has guaranteed the dividends for a period of ten years on the preference allures of the Rapson Tyre Company proposed to be established in that State?

2.   Does the Government consider that the guaranteeing of dividends of that character is a proper use of the special grant of money made to that State by the Commonwealth?

3.   Will the Government obtain the opinion of Crown law officers as to whether the guaranteeing of such dividends is not a violation of section 90 of the Constitution?

Senator Sir GEORGE PEARCE - The answers are: - 1.I understand from the press that the Tasmanian Government has given the Rapson Tyre Company some guarantee in connexion with the establishment of its works in Tasmania, but I have no official knowledge on the subject.

2.   If such a guarantee has been given, I am not aware that it involves the use of the special grant made by the Commonwealth to the State of Tasmania.

3.   In the circumstances it is not proposed to obtan the opinion of the Crown Law officers, but inquiries are being made from the Tas- manian Government.

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