Board Divided On Plan For World Bank Loan

Press, Volume CII, Issue 30269, 23 October 1963, Page 12

Board Divided On Plan For World Bank Loan

' (New Zealand Press Association) AUCKLAND, Ocober 22. A proposal by the Auckland Harbour Board to raise a loan of £792,000 from the World Bank brought strong criticism from several members of the board today.

After an amendment to the motion had been lost on a division, the board decided that a sub-committee consisting of the chairman (Mr R. C. F. Savory), the deputy-chairman (Mr R. J. Glasgow) and the chairman of the finance committee (Mr L. D. Nathan) be given power to act in completing the details of the agreement between the Government and the board, and, subject to satisfactory terms being negotiated, the board accept a World Bank loan.

Mr E. C. Armishaw strongly' opposed "the move to barrow overseas and mortgage the assets of the board." He moved as an amendment that the bank’s loam be negotiated by the Government and that the Government make the money available to the board as an internal loan. Mr Armlshaw said a loan from the World Bank could embarrass the board very much. Mir C. V. Pointon seconded the amendment. He said that in the event of a world recession, the bank could step in and take

over the assets of the board. Mr Glasgow, who supported the motion, said the board was only pursuing the loan if the details were satisfactory. There was no real commitment yet. Mr Savory said the board started about 12 months ago to negotiate the loan. The Government had agreed that after the harbour boards had been granted loans, permission would be extended to electrical supply authorities next and the railways to raise these loans in the future. There was no question of mortgaging the beard’s assets, he said.