Mr Kirk Urges Caution

Press, Volume CIV, Issue 30947, 31 December 1965, Page 3

Mr Kirk Urges Caution

(N.Z. Press Association) WELLINGTON, Dec. 30

The Leader of the Opposition (Mr Kirk) warned today that until New Zealand could get exchange earnings up to a more adequate level, greater care must be taken in spending abroad. Mr Kirk, in his New Year message, called for production of an even larger range of goods for internal consumption and export, and urged development of a greater variety of markets.

He again attacked the Government for allowing the economy to drift into “a precarious situation” —a situation marked by increased expenditure. mounting imports and depletion of overseas funds. Mr Kirk asked for a redoubling of efforts to persuade France to abandon plans for nuclear tests in the Pacific. He repeated a suggestion he had made to the Commonwealth Parliamentary Association conference that the supply of uranium might be controlled by an international authority under United Nations’ auspices. The text of Mr Kirk’s message is: “On this, the first occasion that it is my duty and privilege to address a new year message to the people of New Zealand, may I express on behalf <rf the Labour Party our determination to do all that we can to ensure that the coining year will see improving prospects for peace and

will indeed be a happy and; prosperous one for everybody. Rising Costs “The year past, like others under the present Administration, have been characterised by increasing family costs. Rents have risen steeply and interest rates have risen and are still rising, thus increasing the cost of home ownership. Increased Government charges for telephones, rail fares and electric power are a matter of history. “Projected for the future as a result of recent legislation is the promise of even higher electric power charges. As unpalatable as it may seem, there is unlikely to be any change in this general trend of rising costs before November next. “International affairs in the last year have been a dominant concern and one expresses the hope that 1966 will see a reduction of the tensions and conflicts which have plagued many parts of the world. Tests Deplored “New Zealand, as a signatory to the test ban treaty, has signified her opposition to the continuation of nuclear tests. We deplore the continued testing of nuclear devices by China and the extensive preparations being made by France to join in the nuclear race “Because they are closer, the French tests are a major preoccupation for New Zealand. One hopes that in 1966 we will redouble our efforts to find a way to persuade France to discontinue her dangerous intentions. “One useful step could be an endeavour to promote interest in an international control authority under the aps-

1 pices of the United Nations to control the supply of uranium in such a manner as to exclude access to any nation that was not a signatory to the test ban treaty. “Nearer at hand, economic problems are uppermost. The past 12 months have shown no improvement in the economic situation which has bedevilled this country for the past four to five years. Expenditure has increased, imports have mounted, and our overseas funds have been depleted. Warned by economists, businessmen and farmers alike, the Government has carried on complacently. The problem is admitted, but the solution is lacking. “Finally taking some action, the Government, as its answer, has introduced the present financial restrictions. These came after a period of record income rather than a period of adversity. Imports, Loans “It has enjoyed successive years of record and nearrecord income, yet it complains of economic difficulties. The economy has been allowed to drift into a precarious situation as a consequence of the woeful inadequacy and improvidence of National Government policies. “During the last year, too, we have had the Minister of Finance not only saying he would borrow every penny he could get, but actually carrying that policy into effect We have, on the one hand, the Minister of Finance borrowing to build up overseas funds while his colleague, the Minister of Customs, allows more and more imports to deplete them.

“The Minister of Agriculture calls for more and more production, while the Minister

of Finance has made it more difficult for the farmer and others to obtain the money they need.” “May we also add a Minister of Trade who talks on the need for new and expanded markets and yet does nothing to establish more trading posts in Europe. Replying to representations made by meat interests, he said, *Jt might help a little to expand trade in agricultural products —but the emphasis should be on the word little.’ Such •push-me pull-you’ policies do not serve the best interests of our country. “The over-all prospects for the coming year must be related to the likely trend of our export income, and to the essential need for our spending abroad to be more closely aligned with our actual earning power. The aim should be to protect and increase our overseas funds. “Sooner or later, and preferably sooner, New Zealand must live within her export income, and until she can get her exchange earnings up to a more adequate level, greater care must be exercised in our spending abroad. More Markets “The United Kingdom market, vitally important to New Zealand, is unlikely to be able to absorb all the increased production necessary to achieve adequate exchange earnings. The search for additional markets must be prosecuted with vigour both on the Continent and in Asia. “We must produce an even greater variety of goods for our own use and for export. We must find and develop a greater variety of markets. We must try, all of us, to produce the most and do the best for our country.”