Budget To Take Account Of Monetary Report

Press, Volume CII, Issue 30154, 11 June 1963, Page 14

Budget To Take Account Of Monetary Report

(New Zealand Press Association)

WELLINGTON, June 10,

In considering proposals for the Budget the Government would be giving attention to. specific policy recommendations in the Monetary and Economic Council’s latest report, the Prime Minister (Mr Holyoake) said today. “The Government fully appreciates the warning given by the council to guard against an inflationary upsurge this year and, indeed, the Government has given similar warnings,” he said.

“I am greatly heartened by the improvement in New Zealand's economic situation which is noted by the council ” Mr Holyoake said general objectives outlined by the council—such as a higher rate of growth, stimulation of exports and avoidance of 'stop and go” policies—were fully in accord with the Government's own thinking and policy. “CM course, I am unable to comment at this stage on the reports of policy recommendations as these are matters which come within the scope of the Budget.

"However, the Government generally sees eye to eye with the council on the objectives we ought to aim for although there is still room for argument over how best these can be achieved .” Mr Holyoake said a very close watch was being kept on developments ’ in the economy There was no intention of letting the situation get out of hand again “I do not wish to make any

further comments at the momeht except to compliment the council on the clear and concise form of its report.”

As visualised the council was making a very useful contribution to democratic government by keeping the public informed on economic matters as well as giving the Government the benefit of its advice, he said. Mr Holyoake also referred to the council’s separate report, released last Thursday. dealing with export incentives.

He recalled that early in February he had written to the council inviting it to study more fully proposals made in its third report, released on January 28 “I'm glad that this report was available to last week’s export development conference for its consideration,” he said.

“When drawing up this year’s Budget, the Government will take account of the council's recommendations and the resolutions of the conference concerning export promotion.”