BRITISH EXPORT CREDITS.

Taranaki Daily News, 15 November 1922, Page 6

BRITISH EXPORT CREDITS.

THE SCHEME EXPLAINED. The Officer-in-Charge of Hi.s Majesty’s Trade Commissioner’s Office in New Zealand has received the following particulars with regard to the Trade Facilities Act 1921, which it has been decided to amend in certain respects:— (1) Section 1 of the Act enables the Imperial Treasury, subject to a total limit of £25,000,000, guarantee the payment of interest or principal of a loan, the application of which is calculated to promote employment in the United Kingdom. The Act was devised to relieve, to some extent, the unemployment "which arose in the United Kingdom in 1921'. and was expected to continue throughout the winter o/ 1921-22. It has been of substantial utility, for up to June 30th, 1922, guarantees were approved to the amount of £17,000,000 sterling, and it is estimated that unemployment amounting to 870,000 menmonths will be given on work set going under it. It has been decided to amend the Act on the following lines, and it is proposed that the necessary legislation should, be introduced this- year:—(a) To enable the Government to meet for the first three years of the career of undertakings the' whole or part of the interest charges on loans to be raised. by Statutory Authorities and Companies in the United Kingdom or by Colonial Governments. (b) As regards undertakings of local authorities, the form of assistance suggested in (a) will be treated as an alternative to the present scheme for assisting the revenue producing works of local authorities with parts of interest charges, (c) The limit of the amount for guarantees and loans will bq increased from £25,000,000 sterling to £50,000,000 sterling, and the time limit for the operation of the Act will be extended by 12 months, (d) Power will be taken to create an insurance fund to compensate for impossible loans by, charging a premium or otherwise.