XN000022-1975-06-18 — Page 8

WEDNESDAY, JUNE 18, 1975

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GOVT GIVEN GO-AHEAD TO BORROW 6.5 MILLION POUND STERLING

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THE LEGISLATIVE COUNCIL TODAY ADOPTED A MOTION AUTHORISING THE GOVERMENT TO CONCLUDE AGREEMENTS TO BORROW THE EQUIVALENT OF 6.5 MILLION POUND STERLING FOR GENERAL REVENUE PURPOSES.

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IN MOVING THE MOTION, THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE, EXPLAINED THAT THE PROCEEDS OF THE LOANS WOULD BE APPLIED TO EXPENDITURE FOR WHICH THE FINANCE COMMITTEE HAD APPROVED VOTE PROVISION.

SUBJECT TO THE SATISFACTORY CONCLUSION OF THE NEGOTIATIONS, 5 MILLION POUND STERLING OUT OF THE 6.5 MILLION POUND STERLING WOULD TAKE THE FORM OF A SHOPPING LIST CREDIT. A SHOPPING LIST CREDIT, HE EXPLAINED, WAS A BUYER CREDIT WHICH COULD BE USED TO PROVIDE FUNDS FOR THE PURCHASE OF A VARIETY OF GOODS OR SERVICES.

THE BALANCE OF 1.5 MILLION POUND STERLING, HE SAID, WOULD TAKE THE FORM OF A BANK LOAN WHICH WOULD BE USED TO COVER THE COST OF THE $2 AND 20-CENT COINS WHICH WILL BE PUT IN CIRCULATION FOR THE FIRST TIME IN AUGUST.

MR. HADDON-CAVE-SAID THAT WHEN NEGOTIATIONS BEGAN WITH THE BANK CONCERNED. HE HAD HOPED TO USE PART OF THE SHOPPING LIST CREDIT TO FINANCE THE PURCHASE OF THE NEW COINAGE, BUT THIS PROPOSAL HAD TO BE DROPPED.

HOWEVER, THE BANK WITH WHICH THE GOVERNMENT WAS NEGOTIATING THE SHOPPING LIST CREDIT OFFERED TO PROVIDE A SEPARATE US DOLLAR LOAN TO COVER THE COINAGE COST.

THE FINANCIAL SECRETARY SAID HE COULD NOT GIVE MORE DETAILS UNTIL THE NEGOTIATIONS WERE COMPLETED.

HOWEVER, HE ASSURED COUNCIL THAT THE GOVERNMENT WOULD NOT CONCLUDE THE AGREEMENTS UNTIL IT WAS CERTAIN THAT THE TERMS WERE THE BEST THAT COULD BE OBTAINED.

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