P.M. Appeals For Loan Support

Press, Volume C, Issue 29682, 28 November 1961, Page 18

P.M. Appeals For Loan Support

(New Zealand Press Association)

WELLINGTON, Nov. 27. During the last year New Zealand had overspent its income “to the tune of £79 million.’’ said the Primo Minister (Mr Holyoake) in a broadeast this evening. He urged the public to support the Government’s £lB million loan which closes on Friday. “The need is urgent," said Mr Holyoake. The money was needed to pay for Government works now in progress, works that could not be curtailed without bringing disruption or hardship to the lives of many people now and aggravating the country’s problems in the future. The must be found to pay for these essential services, to keep the economy rolling and to keep people in employment on important public works. The New Zealand income had fallen sharply recently, said Mr Holyoake. Eighteen months ago butter was selling at 333 s a hundredweight For most of this year it had been earning only 2505. The price had now risen to 2705, but even at this level the country was earning £175.000 a week less from butter than it had been getting 18 months ago. During the last year, New Zealand’s earnings overseas had not only been reduced by about £2O million, but spending on imports had increased by £5O million. “And so we've overspent our income to the tune of £7O million,” said Mr HolyUp to today subscriptions to the loan amounted to just less than £7 million, leaving more than £3 million to get by Friday night The Government efforts to

avoid increasing taxation to meet the present difficulties was a challenge and a responsibility to everyone, he said. The success of this policy and the loan depended entirely on public response to the call for voluntary restraints and savings as a means of holding inflation and financing essential Government works.