£20M LONDON LOAN

Press, Volume XCVII, Issue 28573, 30 April 1958, Page 14

£20M LONDON LOAN

Investors Lacked Confidence’ (New Zealana Press Association) WELLINGTON. April 29. "Though to any thinking person it would appear quite unnecessary to comment on Mr Nordmeyer’s assertion that I had inferred New Zealand would not receive the full £2O million involved in the recent overseas loan, I say that nothing in my statement would support such an extraordinary conclusion,” said the Leader of the Opposition (Mr Holyoake) today. "This quibble is doubtless intended to distract attention from the real point at issue, that the present Government does not have the confidence of the British investor. "Underwriters do not relish 1 having a large proportion of any issue left on their hands and, in this case, the fact that only 32 per cent, of the loan was taken up by investors serves as a warn-1 ing that the rate of interest tori any future loan raised by a 1 Labour Government may need to be even higher than 6 per cent.! Fhis rate, incidentally, is much higher than the rate on any other existing loan, overseas or otherwise, included in our public debt. “Mr Nordmeyer raises another point altogether when he alleges hat the National Government should have maintained overseas reserves at a higher figure. Over-| seas funds were not wasted during i he term of office of the National! government. In the main, our. ncome was used to meet the sent-up demand for capital and jther goods that existed, because >f previous shortages overseas and :he restrictive policies pursued >y the Labour Government, cur•ent needs of • essential imports, md for continuing capital development.