Renegotiation Of Tax Pact Wanted

Press, Volume CIV, Issue 30884, 18 October 1965, Page 1

Renegotiation Of Tax Pact Wanted

The Minister of Finance (Mr Lake) hopes that discussions will be held with Britain before March 31 next year on the renegotiation of the double-tax agreement between New Zealand and Britain.

Mr Lake said in Christchurch yesterday he had a brief discussion with the British Chancellor of Exchequer (Mr Callaghan) in the United States. The agreement expired last March. He said he would write to Mr Callaghan on the subject. Meanwhile the New Zealand Government had given dispensation to British pensioners living in New Zealand allowing them not to pay tax here until they knew what taxes would be levied on them in Britain.

“We have been as generous as we can to them,” said Mr Lake. He also had a brief discussion with Mr Callaghan about the Common Market. “Mr Callaghan reassured me that his Government would make sure that New Zealand’s interests would be protected if and when Britain entered the Common Market,” said Mr Lake. “He said it was not a completely dead issue, but he repeated his Government’s assurances to New Zealand.”

Mr Lake said he expressed concern to Mr Callaghan about the high rate of in-terest-7 per cent —which New Zealand had to pay on its last short-term loan of £lO million.

“He informed me of his Government’s problems in providing funds,” said the Minister. “He understood my

concern. No, he didn’t offer to adjust the interest rate—that is not in his power. The terms are arranged by brokers. “I told him that we were using the money to repay a previous loan of £l7m, which we had at 31 per cent. He was quite non-committal, and of course I understand that we have got to meet the market price at the time we want the money.”