$30m windfall for N.Z.

Press, Volume CXV, Issue 33938, 3 September 1975, Page 2

$30m windfall for N.Z.

( From

MAX LAMBERT,

X.Z.P.A. staff correspondent.)

WASHINGTON, September 2. New Zealand stands to gain a windfall of about ; s3om from the decision of the International Monetary Fund to return one-sixth of the [fund’s gold to members. I New Zealand has paid a (quarter of its present quota of special drawing rights, |s2o2m, in gold, which it dei posited over a period of (years since joining the fund (in 1961. I The restitution of one-sixth of this is equivalent to about

is9m in New Zealand cur- . rency — but gold is now worth on the open market i about four times the value at) (Which it is recorded in the : fund’s accounts. Thus, the gold returned to : New Zealand would be worth more than s4om. But in re-1 turn for the gold, New Zea-I land will pay the fund about ! ;slom in New Zealand cur-! I rency to maintain its hold- ‘ rings at the present level. This will reduce the profit to New Zealand to about ; s.3om. The Minister of Finance) (Mr Tizard) told the N.Z.P.A. that this “would not fish-us! out of our present troubles,”, but would be a welcome addition to overseas funds. Whether New Zealand; : sells the gold to realise the profit, or whether its assets are simply increased bv a . book-keeping entry bv the Reserve Bank on receipt of the gold, has yet to be decided. Mr Tizard said the Govern-) i ment would decide in due course what to do with the ' gold it got back from the fund. Sales of gold returned to the 127 members of the LM.F. would in any event be; 1 spread over a period of vears.; as a sudden . influx of gold ' on to world markets would ; force the price down. (LM.F. meeting. Page 17) ]

Dispute. — Patea freezing . workers will resume work to- ’ dav after talks with the ■ Industrial Mediator (Mr P. , Cranston). Taranaki farmers , had earlier threatened to. slaughter all bbbbv calves.; in the district because of the < freezing workers’ dispute i about the manning of the., boning rings.—(P.A.) i A