EXPORT CREDITS

Otago Daily Times, Issue 20901, 16 December 1929, Page 11

EXPORT CREDITS

THE GUARANTEE SCHEME. EXTENSION FOR FIVE YEARS. (Britlsli Official Wireless.) -) (United Press Association ) (By Electric Telegraph—Copyright.) RUGBY, December 13. An extension of the export credits guarantee scheme for a period of live years—namely, until September 8, 1034, is recommended by Sir Otto Niemeyer, Colonel Sidney Peel and Sir William Plender, who were appointed as a committee to consider generally the administration of the scheme.Sir Otto Niemeyer was, until recently, controller of finance at the Treasury. Colonel Peel was -formerly financial adviser to the Foreign Office and Sir William Plender is an eminent accountant. The committee, however, advocates that the extension of the scheme shall be on ordinary commercial lines, without the trammels or shelter which Government administrative action may afford, and it suggests that with this object an executive committee of three business men be appointed immediately, with powers analogous to those of a board of directors, ■ including appointment and remuneration of the staff. Hitherto development of the export credits scheme has been due to the Department of Trade, which saw the advantages of long credits extended by foreign competing countries. The scheme, briefly, is that on payment of a very low premium British exporters can insure against the risk of bad debts in export trade up to 75'per cent, of the transaction or group of transactions overseas. The trade department at present covers up to this percentage, which is fixed in each case on the whole of the exporter’s business done in any particular country.