Aust. ‘Tied' Loan To N.Z. Urged

Press, Volume CV, Issue 30961, 18 January 1966, Page 12

Aust. ‘Tied ' Loan To N.Z. Urged

(N.Z. Press Association —Copyright) CANBERRA, January 1 Australia should immediately grant Nev Zealand a “tied” loan of £lO million to buy Australian plant and machinery urgen y needed for New Zealand’s industrialisation, Mr Robert Anderson, director of the Associated Chambers of Manufacturers, said today. The loan could be a trial run in a tied loan programme, he added.

He criticised Australia for having done almost nothing in the “International hirepurchase field,” which had rivalled the domestic boom in hire purchase. With tied loans the funds must be used to purchase goods from the donor country, he said. They were thus an export promotion device for manufacturers in the donor country. u A modest trial run could be made in New Zealand.

“New Zealand's international reserves at the moment will barely finance two months’ imports,” he said. “Australia’s reserves, although declining, are at least sufficient to pay for five months’ ir. oorts.” The loan to New Zealand might be made repayable over, say, 10 years. But there could be an initial moratorium of three years before the first repayments were due to allow New Zealand time

to recover from its present crisis. “It is gestures such as this that lead to trade through aid and a happier world,” said Mr Anderson.