Attack On Govt. Borrowing

Press, Volume CIII, Issue 30454, 30 May 1964, Page 1

Attack On Govt. Borrowing

(New Zealand Press Association)

WELLINGTON, May 29. The worst feature of the public account was “greatly increased borrowing,” said the Leader of the Opposition (Mr Nordmeyer) this evening.

A summary of the public accounts for 1963-64 was released by the Minister of Finance (Mr Lake) today.

“Mr Lake had estimated in his 1963-64 Budget that net borrowing would amount to £79.5 million,” Mr Nordmeyer said. “He has, in fact, borrowed £95.4 million.”

The Opposition Leader said Mr Lake took some pride in the reduction by £lO million in indebtedness to the Reserve Bank.

“There is no special virtue in reducing Reserve Bank indebtedness by further borrowing. Such action merely adds to the interest burden the taxpayer must carry.”

Other "unsatisfactory” features noted by Mr Nordmeyer

Only by drawing on the reserve fund to the extent of £5 million and by spending the whole of the reserves in the Social Security Fund had Mr Lake been able even to make a pretence of balancing the budget.

The increase in payment of interest by more than £5 million—from 35.8 million the previous year to 40.9 million last financial year. (Public Accounts, Page 17)