Dairy Board denies ignoring N.Z. dollar

Press, Volume CXIV, Issue 33601, 1 August 1974, Page 18

Dairy Board denies ignoring N.Z. dollar

Zealand Press .Association) WELLINGTON. July 31. The managing director of Newton King. Ltd (Mr R. B. Weir) tonight confirmed that he was referring to the Dairy Board when he alleged that a producer hoard had stopped quoting prices in New Zealand cunenty.

Mr Weir told a meeting on Tuesday that a board had ; decided not to quote in New [Zealand dollars because it ' believed the currency was ! over-valued.

A Dairy Board spokesman said today that the board was pursuing its usual foreign currency policy. "We quote prices in whatever currency a customer wants.”

In January the board had !been transacting about half its business in United States dollars, a third in sterling, and the remainder in New Zealand dollars, a spokesman said then. “But we watch the situation daily and try to trade on strengthening currencies.” the spokesman said. Mr Weir alleged that this policy had since been changed. “It is well known in industry circles that they are hardly touching New Zealand dollars,” he said. Mr Weir said he believed

it was imperative that the Government move compau lively swiftlv to reduce the value of the New Zealand dollar He denied that his cad tv a devaluation was prompted by the present large : indebtedness of many stock and station agencies. On March 13, stock and station agencies owed trading banks $36.6m in advances and term loans. On March 14. 1973, the agencies owed onL 54.3 m. Mr Weir said stock and station agencies were facing a liquidity crisis — "But it is not as bad as it was two months ago.”