Social Credit View Of N.Z. Economy

Press, Volume CV, Issue 30965, 22 January 1966, Page 16

Social Credit View Of N.Z. Economy

(New Zealand Press Association)

WELLINGTON, Jan. 21.

Events affecting the national economy last year had been far from encouraging, the leader of the Social Credit League (Mr V. F. Cracknell) said when addressing a Social Credit convention at Rotorua.

Prices and costs had risen, both internal and overseas borrowing had increased, individual liberties had been whittled further away, and there was yet another credit squeeze, he said. “In 1960, when National went in, the cost of living was 15.4 per cent above the base of 1955,” he said. “Last year it was 32 per cent higher.” In spite of record exports totalling f375.5m £66.1m more than was spent on imports the balance-of-pay-ments deficit was £28.3m. Of the 170 stocks listed on the share market, only 45 showed gains, and 117 showed losses for the year, he said. “Contrast this with 1964’s 131 gains and 33 losses, and it can be seen what rising costs have done and are continuing to do to business profits.” Mr Cracknell said that the Government had immediately rushed to the I.M.F. for money and had applied a credit squeeze. Although the Government claimed the money was borrowed at eheap rates, it had to pay the charges in gold . Mr Cracknell asked where the gold would come from. “Not by sending someone overseas to arrange another loan to buy the gold to pay the charges on the old loan, I hope." Already servicing debts cost more than was spent on de-

fence, health, or education, he said.

“People must realise that unless there are basic changes under either a Labour or National government this year, the spiral of tax-borrow-ing costs will go up and up. “We must stop this selling out to overseas interests, stop piling debt on debt, start to give our real wealth of primary produce the urgent and long-term incentives really to move into increased production, and begin to use our own credit intelligently and on a planned basis," he said.