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Wednesday, 31 March 1965

Senator PALTRIDGE (Western Australia) (Minister for Defence) . - I shall attempt to provide the information that Senator Cooke sought some little time ago. He asked whether the three categories of lenders - banks, life insurance companies and building societies - had indicated their willingness and ability to take part in this arrangement. I think that the answer is " Yes ", but I want to make it perfectly clear that their willingness will not be formally indicated unless and until they make application in the terms of the Act. All I can say now is that it is confidently expected that they will.

Senator Cooke - Can other classes also make application if they desire?

Senator PALTRIDGE - Not as yet. That is the cause of this debate which has delayed the Senate so much tonight. As I have indicated repeatedly, it is the stated intention of the Minister that this application will be widened as time goes on. The honorable senator sought information about the revocation of an approval by the Corporation. I point out first that the Corporation itself will consist of five responsible men who will be appointed and who will be charged with the proper and businesslike conduct of the Corporation's affairs. They will exercise, I am sure, proper judgment in matters which come before them.

The honorable senator was interested in what might be reasons for the revocation of a licence. These examples of what might occur have been given to me, but this is not a complete list. It is necessary for the Corporation to be able to exclude lenders who clearly would be unable to manage their mortgage loans - for instance lenders who would not follow up delinquent accounts and therefore would be bad risks from the Corporation's point of view. Again, a lender might supply misinformation about a borrower's ability to repay. A terminating building society that reached the end of its useful life would have its approval revoked. Similarly, an organisation in compulsory liquidation could not continue as an approved lender. Gazettals of approvals and revocations will keep the public informed of who are currently approved lenders.

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