Union lends to Harbour Board

Press, 19 December 1981, Page 6

Union lends to Harbour Board

The Lyttelton Waterfront Union yesterday subscribed $lOO,OOO to the Lyttelton Harbour Board from the Waterfront Industry Superannuation Fund towards redemption of the board’s Swiss loan.

The secretary of the union, Mr M. E. Foster, presented the cheque yesterday to the chairman of the board, Captain A. R. Champion, saying that the subscription showed the union’s confidence in the port.

The board is raising a redemption loan which will be used to provide funds to repay the Swiss loan. Captain Champion said that the board was delighted to receive such generous sup-

port from the union and hoped that other Canterbury interests would also be moved to offer substantial support.

The loan was raised from Swiss banks in 1976 by New Zealand’s four major harbour boards when major expansion was taking place and new facilities, such as container cranes, were being installed.

Although the nominal interest rate on the loan is low, currency exchange losses brought about by the devaluation of the New Zealand dollar have added to the effective charges and will

result in an increase in the amount which has to be repaid to Switzerland when the loan falls due on July 15 next year.

To help protect the board’s financial stability and assist in holding port charges at the lowest level possible, $6.45 million domestic loan money is being sought to minimise the continued exposure to exchange losses.

The board’s general manager, Mr J. A. McPhail, said, “This generous move on be? ) half of the watersiders further demonstrates the close and harmonious relationship which has been maintained over the years between workers and employers at the port.”