Overseas borrowing may finance ports

Press, Volume CXVI, Issue 34129, 15 April 1976, Page 14

Overseas borrowing may finance ports

(N.Z. Press Association) WELLINGTON. April 14. Overseas loans of many millions of dollars might be sought to finance container port facilities. The Minister of Transport (Mr McLachlan) said tonight that the Government would investigate the feasibility of raising loans overseas.

The Government was concerned about the lack of finance to develop the country’s designated container ports. “The Government fully appreciates the importance of the development of the container trade t.o New Zealand’s future,” Mr McLachlan said.

“It is hoped that this solution may overcome the problem of loan finance facing the individual harbour boards.” Lyttelton and Port Chalmers are having serious problems raising loans for container facilities. Shipping executives are worried that Lyttelton will be the country’s most unprepared container port when the expected build-up in container shipping begins next year. POOR RESPONSE The Lyttelton Harbour Board has been trying to raise sl.2m of a total loan issue .of ss.Bm in recent months, but the response has been poor. The board’s general manager (Mr J. A. McPhail) said from Christchurch tonight that response to the board’s loan issue had been poor. “There hasn’t been a very good response from the private sector, even with the raising of interest rates,” Mr McPhail said. The board would be interested in the overseas loan market if the Government would not make money available from the National Provident Fund. “I have just got back from Wellington, and I understand there is a letter about this waiting on my desk,” Mr McPhail said. “I will be having discussions with Treasury officials about this possibility.” The chairman of the Wellington Harbour Board (Mr H.

A. James) said from Masterton tonight that Mr McLachlan’s announcement was good news. “The work on container terminals must not be allowed to stop if New Zealand is going to meet the demands that will be placed upon it in 18 months,” Mr James said. Sufficient loan money had been coming forward for Wellington’s Thomdon terminal to allow work to continue. By 1979 more than 80 per cent of New Zealand’s exports to Europe and Britain will be carried by container. A container ship frequency of one ship every five or six days is envisaged for this trade and increases are expected in the container trade to North America and Japan.