World Bank “Not Dictating”

Press, Volume CII, Issue 30233, 11 September 1963, Page 18

World Bank “Not Dictating”

(New Zealand Press Association) WELLINGTON, September 10. Four World Bank experts in Wellington for discussions with the Treasury on a proposed port improvements loan today denied an allegation made at a Lyttelton Harbour Board meeting last week that the bank was adopting a dictatorial attitude. “We are not dictating anything,” the leader of the four-man party (Mr J. H. Collier) said. “A suggestion was made in view of port practices in other parts of the world.”

Mr J. W. Lowden, Who represents the bank's technical department dealing with port projects, said: ‘‘We are not setting ourselves up as authorities but we have seen, a lot of port development and felt we could comment when we saw something which was a little out of line. “We certainly do not feel that New Zealand port authorities are short-sighted,” Mr Collier ‘said.

The Lyttelton objection arose when the Harbour Board received an observation from the World Bank on the size of proposed wharf sheds.

The chairman (Mr A, A. Macfarlane) is reported to have said: “It looks as though they will dictate to us the size.”

The'' bank officials began discussions today with the Treasury on what Mr Collier described as the final stages of meetings before the loan submissions were placed before the board of directors of the World Bank in Washington for approval. The group would not disclose the amount nor the term of the proposed loan.

The bank would lend the money to the New Zealand Government as a single deal, with the Government then making finance available to

the seven harbour authorities concerned Auckland, Wellington, Lyttelton. Otago, Natpier, Timaru and Whangarei.

It is not known exactly how long the final round of talks will take, but Mr Collier said today he hoped the details could be completed within two to three weeks. Hie World Bank’s current interest rate, which Mr Collier said was determined bygeneral world market conditions, was 5J per cent. This was approximately H per cent higher than the rate the bank itself paid, but 1 per cent of this was a special commission charged by the bank in accordance with its articles and the remaining .25 per cent covered operating costs.

The interest rate moved up or down slightly with the world market rate, and 5J per cent would not necessarily be the rate ruling if and when the New Zealand loan was finally signed up.