Mr Kirk Replies To Mr Walker on N.Z. Economy

Press, Volume CIII, Issue 30389, 13 March 1964, Page 15

Mr Kirk Replies To Mr Walker on N.Z. Economy

The member of Parliament for Lyttelton (Mr N. E. Kirk) in a prepared statement, yesterday said: “Although the statement of Mr H. J. Walker, member for St. Albans, will do nothing to allay the widespread concern felt about the way in which his Government is allowing New Zealand to drfit into a dangerous economic position, it does at least demonstrate his fervent dedication to passive Micawberism. “This is highlighted by his complacent and inaccurate assertion that interest on New Zealand’s overseas debt amounts to £6j million and makes only a small dent in export receipts. “Reference to the latest report of the Monetary and Economic Council, a body of expert economic advisers set up by Mr Walker’s Government, shows that ‘New Zealand’s dependence on overseas borrowing has increased while the net cost of servicing private and Government overseas debt has continued to rise and in 1962-63 totalled £26 million as compared with only £8 million, seven years ago.’ “Further than that, the council reported, 'that net overseas borrowing both Government and private is likely to amount to some £36 million in 1963-64, in spite of record export income.’ “The council rightly states that this is unsatisfactory, especially because of the serious doubt as to whether overseas borrowing has been matched by a comparable increase in over-all investment and particularly investment in the most productive sectors of economy. “Thus, it will be seen that the findings of this expert body, unhampered by consideration of political expediency, virtually contradict Mr Walker's claim,” says Mr Kirk. "The fact is that, in spite of record income and massive overseas borrowing over the last three years, we are not producing enough exchange to pay for all the things that New Zealand wants and consequently imports are strictly rationed. “When record income, plus massive borrowing, . cannot meet the nation’s needs, it is idle to imply that all is well

with the economy. To safeguard our standard of living and maintain full employment, New Zealand needs to do much better. Our exchange earnings must be substantially increased. “There seems to be little appreciation of this vital fact in Mr Walker’s statement, and it would seem unlikely that the drive and leadership necessary to build up our national economy will be found in the passive Micawberism of the ‘steady-does-it’ policy,” concludes Mr Kirk.