COMMERCIAL CREDITS SYSTEM

Evening Star, Issue 23384, 29 September 1939, Page 2

COMMERCIAL CREDITS SYSTEM

IS AGREEMENT WITH BRITAIN WORKING ? STATEMENT BY MINISTER WAR DISORGANISATION A POSSIBLE FACTOR [From Our Parliamentary Retorter.J WELLINGTON, September 28. The fact that there was a credit of £3,000,000 in reserve in the United Kingdom for defence and other Government purchases was revealed by the Minister of Finance, Mr Nash, in the House of Representatives to-night when replying to the second reading debate »on the Customs Amendment Bill. The whole of that sum, he said, was at present unused. Answering Opposition criticism, Mr Nash traced the circumstances leading up to the imposition of the import restrictions in December of last year. He contended that the Government had done what it could to prevent any disorganisation of business, even to the extent of allowing £3,600,000 more credits than were provided in the licenses so that the Dominion’s reputation would be unimpaired. It was incorrect to say that material for defence had been held up because of the Government’s policy. Not a gun, not any piece of equipment, nor any ammunition had been delayed on account of a shortage of sterling funds. The Government’s difficulty was obtaining delivery. While at Home he made an arrangement that there should be £5,000,000 made available for defence and other Government purchases. Mr Hargest: Too late! Mr Nash: No, paymentsfor defence materials were provided immediately they were required. We have £3,000.000 in reserve in the United Kingdom specially earmarked for defence and other Government purchases. Replying to points raised by Mr Wilkinson, the Minister said any member of the House could see the agreement made regarding th e £4,000,000 commercial credits. Mr Wilkinson: Can we get a copy? The Minister: I do not know; whether 1 should make available copies of a document sent me by the British Government. The agreement was dated August 1. , . , . n Mr Wilkinson: Is it working? The Minister: The agreement w'as made. , ' He went on to say that there was one clause in it that would have created great administrative difficulties, as Britain wanted the payments made in chronological order. It would have meant setting up an administrative machine that would have been almost impossible to work. He had had an alteration made on August 25. If there were delay, he did not know wdiat was causing it. He had cabled to find opt. Up t(T the present, something like £2.000 000 had been paid out of the Wilkinson: From the £5,000,000 credit ? The Minister; Yes. r lhc other agreement was made at the same time. I have made inquiries to see why the commercial agreement is not. w'orkiug. I think it likely that there will bo an explanation. Mr Nash, in further explanation, said it was possible that, owing to tho war, there had been conservation of sterling which had possibly affected tho export credit account. If the agreement was not working fully, some new' arrangement was no doubt being made, hut New Zealand should have been informed. Referring to tho licenses folv, tho third period, the Minister said they had all tho details available on September 1 as to the prooortion of money to be allocated, but the war had changed tho whole picture, and alterations had now to he made. The Government had to make sure that the money was being expended on essential goods. Some of tlm goods which might be required in New Zealand might bo articles not allowed out of Britain. The whole procedure would have to be reorganised “ We am engaged on the work now, and will it up as soon as possible,” lie added.