BRITISH EXPORT CREDITS

Dominion, Volume 33, Issue 2, 27 September 1939, Page 8

BRITISH EXPORT CREDITS

M.P. Seeks Information

ASPECTS OF LICENSING SCHEME

Further information relating to the British export credits of £4,000,000 and certain aspects of import licensing was sought by Mr. Wilkinson (Independent, Egmont) in urgent questions addressed to the Minister of Finance, Mr. Nash, in the House of Representatives yesterday. Mr. Nash said that he had already made two statements concerning the subjects raised by Mr. Wilkinson, but he would be prepared to elaborate further if the questions were placed on the order paper. Mr. Wilkinson asked if it was a fact that importers desiring to avail themselves of the British export credits would have to deposit in „a New Zealand bank the full value of goods covered by such an arrangement, and if so, did the Minister realize that this stipulation would be a difficult one for many importers to comply with, and would also load the price of the goods with heavy interest charges resulting in considerable increases in landed costs.

In his second question, Mr. Wilkinson asked if the Minister was aware of the present unsatisfactory position regarding payments for American, Canadian and other imported goods, which were ordered and in some instances shipped before the present system of control of foreign credits by the Reserve Bank, for a period as far ahead as June, 1940. Was the Minister aware that importers would have to pay double interest on the unpaid portion of drafts covering such goods, and also take the risk of a further fall in sterling exchanges as against dollars or other currency? Mr. Nash was also asked if he would instruct the price-fixing tribunal to take these factors into account when determining the selling prices, and if he would instruct the collectors of customs to increase the value of American and Canadian import licences by the amount of the additional exchange, between the date of placing orders and the date of clearance of sueh goods at customs houses. After suggesting that the questions should go on the order paper, Mr. Nash said he was keen to give members any information on the subject. Mr. Coates (Opposition, Kaipara),: When will they be answered? Mr. Nash: They .will be answered tomorrow if the questions are forthcoming.