Mr Kirk Wants Action

Press, Volume CV, Issue 30983, 12 February 1966, Page 1

Mr Kirk Wants Action

(N.Z. Press Association) f WELLINGTON, February 11. The Leader of the Opposition (Mr Kirk) today demanded an immediate statement from the Government on the measures it proposed to adopt to put New Zealand’s finances on a more businesslike and sane footing.

He said the Opposition wanted to know how the Government intended to produce extra exchange to maintain full employment. Mr Kirk, speaking after a meeting of the Labour caucus, said the present low balance in New Zealand’s

exchange reserves had come about during a period of record, and near record, exchange earnings. “If the Government is not able to manage the affairs of the country under these circumstances it will not be able to cope with problems of adversity,” he said. Mr Kirk said extra exchange reserves were necessary to repay the Government’s heavy borrowing when the payments fell due. “This is a vital question in a year of near-record earnings,” he said. “The Government has sold more than £8 million worth of securities, has borrowed £22 million from the International Monetary Fund, £lO million in London, £6.9 million in the United States, and has negotiated a £22.3 million loan from the World Bank. “On top of this, the Govern-

ment has passed legislation to enable it, in connexion with certain defence requirements, to acquire equipment now and pay for it later,” said Mr Kirk.