WORLD BANK LONG-TERM CONFIDENCE IN N.Z.

Press, Volume CVII, Issue 31439, 4 August 1967, Page 18

WORLD BANK LONG-TERM CONFIDENCE IN N.Z.

(New Zealand Press Association) WELLINGTON, August 3. The leader of a World Bank mission to New Zealand today expressed his confidence in the long-term prospects for New Zealand’s economy, but said some structural changes in production might be needed.

Mr David Kochav heads a four-man team from Washington which today began a three-week survey of New Zealand’s longterm economic problems.

The mission is in New Zealand at the invitation of the Government. The possibility of Britain entering the

Common Market will figure prominently in the investigations.

Asked if he felt there was any need for' despondency over the country’s present economic troubles, Mr Kochav, who was last in New Zealand 10 years ago, said. “Personally, I am quite (optimistic about the long-term prospects for New Zealand’s economy. “It may very well be that some structural changes in production will have to be made, but I think there is no question that basically New Zealand’s is a healthy economy. “I don’t think there Is any question about long-term prospects for future. development” Mr Kochav also had a reassuring comment on New Zealand’s credit rating. Credit Record

He said he thought the World Bank had always rated New Zealand as very credit-worthy and still did. “The credit record of the country is excellent," he said. But be added: “This doesn’t mean that the bank intends to make immediate further lending to New Zealand, because this is related to a

great extent to how the bank makes use of its own limited resources.” Between 1963 and 1965 the World Bank has lent New Zealand $U5102,000,000 for ports, power and railways, but no formal application for another loan is before the bank. The mission will look into what Mr Kochav calls “strategy for development.” Some Advice It was not related directly to the present economic situation, he said. “We do not intend to spend much time in looking into the very short-term problems—problems of what is going to happen in the next three or six months dr even 12 months,” he said. v The mission planned to produce a report which it hoped would contain some advice for the Government on the matters under review. The mission will look into the longer-term prospects for agricultural exports and will try to reach conclusions on the emphasis that should be placed on development of the various agricultural commodities.

The pattern of investment and production in industry

will also be included in their survey. Mr Kochav said that, in general, any long-term policy should assume alternatives. In this case, the possibility that Britain would join the Common Market was one of the most serious.