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Sale of the Housing Loans Insurance Corporation



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TREASURER

PRESS RELEASE NO. 94

EMBARGO

Μ-7Ϊ

JOINT STATEMENT BY THE TREASURER, THE HON. JOHN HOWARD, MP AND THE MINISTER FOR HOUSING AND CONSTRUCTION. THE HON, RAY GROOM, MP

SALE OF THE HOUSING LOANS INSURANCE CORPORATION

In our press release of 17 July 1979 announcing the Government's

decision to sell the assets and business of the Housing Loans

Insurance Corporation we stated that: "The Corporation will

continue to operate on its present basis up to the time of sale.

The sale will not prejudice the interests of policy holders

or those persons whose housing loans have been insured by the

Corporation."

We have received a number of enquiries as to whether it could

be taken from this statement that the protection offered by

section 30 of the Housing Loans Insurance Act 1965 to those

who have loans insured with the Corporation would continue after

sale. Under that section the Commonwealth, in effect, guarantees

the liabilities of the Corporation.

In order to put this point beyond doubt we give an assurance

that the Commonwealth will stand behind liabilities of the

Corporation as they exist at the time of sale, including those

2.

accruing between now and that time. The precise manner in

which this will be done will be determined as part of the sale

negotiations.

Canberra 16 September 1979