FRUIT GUARANTEE

Evening Post, Volume CXIX, Issue 32, 7 February 1935, Page 12

FRUIT GUARANTEE

DETAILS OF NEW

SCHEME

GOVERNMENT CONTRIBUTION

Details of the proposed new scheme for a Government guarantee on export fruit are now available. The proposals are tentative, but it is expected that they will be adopted without material amendment. The scheme is as follows:— Position between Board and Government. 1. The Government will assist the board towards building up a central fund so that the board • may be enabled, without Government assistance, to (a) arrange for the financing of export fruit; (b) continue to assist fruit growers financially. 2. Early in 1935 the Government, irrespective of claims, will contribute to the board's fund, on a £ for £ basis with the industry, up to £12,500 3. In 1936, and again in 1937, where a grower's average return is below the average rate determined by the Fruit Board, the Government will pay to the board's central fund 50 per cent, of the shortages provided the agreed upon rate does not exceed 9s New Zealand currency per case c.i.f. overseas destinations,, and provided the fruit has been exported in accord with the Government's export requirements. The liability of the Government under this arrangement not to exceed £12,500 for each year. 4. Government assistance to the central fund to cease with the payment made for the year 1937. 5. That the market guarantee for 1935 and subsequent years for fruit exported to established markets, be given' by the board and the liability of such guarantee be met by the board's central fund. 6. The Government's contributions' mentioned in paragraphs 2 and 3 will be. free grants, and in the event of it being necessary for the Government to extend further assistance, this will be provided by way of loan to the board on proper justification being shown and upon, terms to be arranged: security, for such loans 'to be the board's export guarantee fund. 7. In return for overdraft facilities, the Fruit Board will instruct Treasury to pay to the bank all" moneys due to the board. Should market proceeds plus the board's Export Guarantee Fund not be sufficient to liquidate the overdraft, the Fruit Board to receive the necessary money, as a loan, from Treasury. > ■ POSITION BETWEEN BOARD AND THE GROWER. 8. Each grower will contribute to the board's Central Fund a fixed sum per case on all fruit exported to established market? and/or new markets. The contribution per case to be determined annually by the board, and to be regulated so as to provide a yearly aggregate contribution of £12,500 for the years 1935, 1936, and 1937. . 9. Records will be kept showing the contributions received from, loans made to, and repayments effected by, each grower. 10. The present credit balance of'the Government Guarantee Reserve Account to be transferred to the credit of the board's Central Fund. 11. The Fruit Board will annually determine a c.i.f. rate per case in New Zealand currency, and where an exporter's return from established markets does not average this rate, the deficit will be advanced from the Central Fund to him, as a loan free of interest. The rate to be determined by the board must not exceed 9s New Zealand currency per case. 12. When the market returns of a grower exceed the current c.i.f. rate determined by the Fruit Board, sUcb surpluses will be retained by the board to repay to the Central Fund any loan or portion of a loan owing by the grower. Where a grower has no indebtedness to the Central Fund all market proceeds will be paid to him. 13. The Fruit Board has the right in any year to reduce the c.i.f. rate for any particular grower, or any particular variety or grade of apple or pear. . 14. Before a loan is granted to any grower, his claim for a loan will, during the first three years, be certified to by the accountant of the Department of Agriculture, and in subsequent years by the accountant of the Fruit Board. Further, before a loan is granted, the grower must give to the Fruit Board satisfactory assurance that he will continue to export quantities and varieties that give reasonable prospect of the loan being repaid from market surpluses in subsequent years. . 15. When a.loan has remained unpaid for a period of three . (or five) years the board will give special consideration to the grower's position with a view to safeguarding.the interests of the Central Fund, and enabling the grower to attain a more satisfactory financial position. 16. No grower can establish a claim for the repayment of his; contributions, but the board may effect repayment (less any benefits received) in necessitous cases, or in exceptional circumstances such as sale of orchard or death of contributor. The board at all times to conserve vthe interest of the Central Fund. .

17. The board to-endeavour to'obtain interest on money lying to the credit of the Central Fund and all interest so gained to be paid to a reserve account and be utilised so far as may be necessary for the writing-off of unpaid loans.