P.M. Claims Government Policy Getting Results

Press, Volume CII, Issue 30094, 30 March 1963, Page 10

P.M. Claims Government Policy Getting Results

(New Zealand Prese Association)

WELLINGTON, March 29. Economically and financially the barometer in New Zealand was “set very fair,” the Prime Minister (Mr Holyoake) told the Dominion council of the National Party in Wellington today. “There is much more confidence abroad today than there was a year or two ago,” he said.

“When we assumed office, we took a line of policy and we stuck to it. The result is that the country has achieved a very good balance, both internally and externally,” said Mr Holyoake. "Our overseas funds are building up well. Earlier, we hoped that by the end of June they would be around £75 million or £7B million, as compared to about £5O million at one stage. Now, however, the trend is such that these funds could run considerably higher. “Internally, the situation is also extremely heartening,’ ’ the Prime Minister said. “In the Government sector, our finances will be in balance, and in the private sector, stability has been achieved which is now showing up in increased production and business activity and general expansion. “The labour situation is in

perfect balance. There are less than 1000 unemployed, and many of these are, for different reasons, unemployable. Even at the peak, there were only about 1500 unemployed. “Overdrafts came down from their excessive level and this situation is now quite healthy. People are saving, with the amount of small savings particularly high, there has been no difficulty in filling Government loans.

“There is ample liquidity and the banks now control their own lending policies. No commercial bank is indebted to the Reserve Bank “We are holding costa of living and of production fairly well, and the position should be even better this year than it was last year. “Altogether, there is every justification for expansion in the economy. The basis is unquestionably there.",