Export Credit Agency

Press, Volume CIII, Issue 30559, 30 September 1964, Page 7

Export Credit Agency

(N.Z. Press Association)

WELLINGTON, September 29. Export credit guarantees will be offered by an agency established within the State Insurance Office. Details of the scheme have yet to be promulgated by regu-. lation but statutory authority for the system is provided in an Export Guarantee Bill introduced in Parliament today. The new office will provide insurance against politicallycreated losses in exporting as well as normal commercial losses. The following causes will qualify:— Non-payment, in whole or part, for goods or services supplied beyond New Zealand. Frustration or other failure of any contract or. transaction involving the supply of goods or services beyond New Zealand. Payment of expenses necessary to complete any such contract or transaction. Any loss, for any other cause, arising from export or expert development. The office is also empowered to guarantee repayment

by a banker or other lender of the whole or part of amounts advanced to facilitate export of goods or services covered by insurance.

It will also have a general function to provide services to avoid or mitigate export losses.

Responsibility for determining the classes of risks which the office may insure against is vested in the Minister in charge of the State Insurance Office. AVOID LOSSES It will also have a general function to provide services to avoid or mitigate export losses. Responsibility for determining the classes of risks which the office may insure against is vested in the Minister in charge of the State Insurance Office, who must heed state policy as transmitted to him by the Minister of Overseas Trade. . The Minister will be able to determine the maximum proportion of contract losses which the office may assume. It will not be possible for the office to insure risks for which commercial insurers already offer adequate provision.

But, after consultation be- ' tween the Minister in Charge ■ of the State Insurance Office and the Minister of Overseas Trade, the office may gain authority to insure risks not : normally within its field but judged to be in the national interest. In such cases, any contract * losses will be repaid •by the Government.' Guiding the new office, by ! providing counsel on export insurance will be an export guarantee advisory committee. Its members will be the Secretary of Industries and Commerce, the general manager of the State Insurance Office and up to six others named by the Minister, who will also choose the chairman. Appointments will be for three years. Funds for the scheme will be provided by the Govern- ■ ment and kept within the State Insurance Account. A : report and accounts will have to be presented to Parliament ’ each year. The office will be exempt ; from income tax but subject ■ to scrutiny by the Ombudsman.