"Reckless Spending By Govt.’

Press, Volume CIV, Issue 30811, 24 July 1965, Page 3

"Reckless Spending By Govt.’

(N.Z. Press Association) WELLINGTON, July 23. The Leader of the Opposition (Mr Nordmeyer) said today that “this profligate Government is showing a reckless, spendthrift attitude that is certain to land this country in disaster.” He was commenting on the country’s £22,200,000 deficit

on overseas exchange transactions for the year ended June 31. “The really significant figure concerning overseas trade in the year just closed is the alarming deficit on current account of £27,100,000,” Mr Nordmeyer said. “This deficit was created notwithstanding the very high income from exports last year. “It is worth while noting that though exports fell by only £l4 million, the over-all deficit on current account was £27,100,000. This means that imports and other payments were at too high a level. “The worst feature of the

situation is that this year, while there is little prospect of export prices increasing, import licences have been issued to an extent that will mean a deficit at the end of this year substantially in excess of last year’s. “The estimate of the Monetary and Economic Council of a possible deficit this trading year of £4O million may not be far out. This is a figure which the Government may look upon with equanimity. “It is a figure which every thoughtful New Zealander must regard with dismay. “The only way in which such a deficit can be financed is to run down our overseas balances to a dangerous level and to borrow extensively overseas.”