EXPORT TRADE

Hokitika Guardian, 19 December 1929, Page 7

EXPORT TRADE

CREDITS GU A RANT EE SCHEME. RUGBY, December 13. Extension of the exports credits gmiraiiU'o scheme for a period of five years, namely, until September 8, 1934, is recommended by Sir Otto Nicmeyer, Colonel Sydney Peel and Sir William Plendeir, who were appointed as a committee to consider generally the administration of the scheme. Mr Otto Nicmeyer was, until recently, Controller of Finance at tlie 1 reasury; Colonel Peel was formerly Financial Adviser to the Foreign Office, and Sir William Blender is an eminent accountant. The committee, however, advocate that the extension of the scheme shall be on ordinary lines, without trammels or shelter which Government administrative action may afford, and they suggest that./ with this r/biect. an executive committee of three business men should be appoint? cd immediately to have powers analogous to those of a board of directors, including choice of appointment and remuneration of staff. Hitherto the development of the export credits scheme has been due to the Department of Trade, which saw the advantages of the long credits extended by foreign competing countries. The scheme briefly is that, on payment of a very low premium, British exporters can insure against risk of bad debts in the export trade up to 75 per cent, of any transaction, or group of transactions. The Overseas Trade Department at present covers up to this percentage fixed in each case on the whole of the exporters’ business done in any particular country.