LOAN REPAYMENT

Auckland Star, Volume LXXV, Issue 213, 8 September 1944, Page 4

LOAN REPAYMENT

COMMENT BY MR. NASH QUESTION OP N.Z.'S CREDIT (By Teleeraph.—Parliamentary Reporter) WELLINGTON, this day. The House of Representatives was reminded last night by the Minister of Finance, Mr. Nash, of an important loan transaction he had to conduct in London in 1939, when £17,000,000 which had been borrowed by a previous Government had to be repaid. He said the flotation rate at the time was £5 8/ per cent, and the British Government exercised control over all capital issues. Through its good offices New Zealand got £16,000,000 at 3i per cent, and it repaid £1,170,000, which was available for the purpose. At that time, declared Mr. Nash, there were saboteurs in New Zealand trying to destroy the country's credit. That £16,000,000 would be repaid in full the first thing next year. There ought to be an end of belittling the Dominion by men who lived in it, said the Minister. There should be an end to catties to British newspapers telling them not to do things for New Zealand because there was a Labour Government, and not to lend the Dominion money until she removed import restrictions. At the time the £17,000,000 loan was arranged, New Zealand was short of the money necessary for it to maintain its good name because men in the country had transferred their resources to other countries. "We know where millions of it are to-day," concluded Mr. Nash. "Those men came to the Government begging it to take the money back into this country because of the difficulties in other countries."