OVERSEAS DEBT REDEMPTION POLICY ATTACKED

Greymouth Evening Star, 12 March 1949, Page 6

OVERSEAS DEBT REDEMPTION POLICY ATTACKED

A CHRISTCHURCH, This Day. Criticism of the present policy of repaying New Zealand’s overseas debts when the country was crying out for capital replacements of equipment” was made by the Leader of the Opposition (Mr S. G. Hol ~ land), in an address to National Party members last evening. The present Minister of Finance (Mr Nash), because of certain experiences he had in London about 1936, was determined at all costs to pay off overseas debts, Mr Elplland said. Since 1945 New Zealand’s indebtedness in London had dropped from £l99m to £lo4m. That money, Mr Holland contended, should have been used to buy the goods Britain was eager to sell us. “Instead, I teel we are deliberately being committed to indefinite rationing,” he said. Britain would prefer to keep her overseas investments, said Mr Jdoiland, and use the interest from them to buy her food. What was happening however, was that machinery 0.l all ’descriptions in New Zealand was approaching the. scrap-heap stagecars, railway rolling-stock, trucks, all included—and although replacements were available New Zealand was not buying them. “There is a buyers market now in Britain. Britain has th£ goods and is keen to sell them to us. Once we had the money to buy them, but now it has gone—in debt repayment,” said Mr Holland. , , . Railway engineers were at their wits’ end to keep rolling stock on the lines, thousands of cars and trucks were ready for scrapping, but replacements could not be bought. Farms in the North Island were going back because machinery, fencing, and the rest needed replacing. “Britain is searching for customers. Once we could have bought what we wanted. We cannot do it now,” added Mr Holland.