SURPRISE AT DELAY

Waikato Times, Volume 125, Issue 20887, 19 August 1939, Page 10

SURPRISE AT DELAY

EXPORT CREDITS PLAN EXTRA CHARGES ENTAILED (Special to Times) AUCKLAND. Friday Discussing the new export credits plan today, the president of the Auckland Importers’ Association, Mr Hugh Thomson, expressed surprise at the delay in issuing particulars. “The statement now made by the Government assures importers that the funds to cover the whole of the licenses for the second period will be available,” said Mr Thomson, “although the complete coverage may not be obtained until the end of June, 1940. "The customary method of financing imports is by means of drafts, and the method outlined in the cable news of arrangements made with the Export Credits Department in Britain, while providing for the negotiation of drafts, will entail insurance-premium and interest charges, which will be added landing expense on goods, although the former will be offset to some extent by delayed payments. 75 Per Cent Coverage “Under the system, coverage to the exporter of 7.'» per cent only is provided, and smaller importers and those establishing new business connections will undoubtedly lind this a difficulty hard to overcome. Larger importers with established connections will no doubt seek accommodation through the trading banks to tide them over until funds can be remitted. “The whole system now disclosed provides some foundation upon which merchants can negotiate their finance, and will allay the anxiety which lias been felt among importers for some Lime. It is difficult to understand why a similar policy statement to the present one was not released earlier. "The Auckland Importers’ Association has been urging for some time that the situation be clarified, it is now nearly a month since overseas funds were held up, and it has been a time of worry for importers, while our reputation overseas has been affected.”