Overdraft For Trading

Press, Volume CVI, Issue 31231, 1 December 1966, Page 3

Overdraft For Trading

(N.Z. Press Association)

HASTINGS, Nov. 30. The Government had agreed to guarantee only the Apple and Pear Board’s trading overdraft. The board would have to go to a private money-lending institution for a loan for capital expansion, the board chairman (Mr K. B. Longmore) said today.

Mr Longmore said he had received a letter today from the Minister of Finance (Mr Lake) outlining the procedure the board should adopt in approaching money-lending institutions.

He said it was his hope to keep the board as independent as possible. He did not want the board to become another Air New Zealand, or National Airways Corporation where affiliation to the Government was more marked.

The board had to approach

the Government because of the export losses amounting to nearly £1 million last season.

The board did not have the liquid assets to cover these losses which had wiped out its reserves.

Talks with the Government, concerning the board’s economic problems, had resulted in the Government’s assurance of an extended guaran-

tee for the trading operations only. This, in the terms of the act governing the board’s operations, meant finance for the buying and selling of fruit would be assured. “As for capital, that is a different matter. We desperately need more stores for the crops which are getting larger each year.” said Mr Longmore.