“In Serious Trouble”

Press, Volume CVI, Issue 31247, 20 December 1966, Page 1

“In Serious Trouble”

(N.Z. Press Association) WELLINGTON, Dec. 19. The Prime Minister (Mr Holyoake) said tonight that although the New Zealand economy could carry financial losses sustained by one of its basic industries, it was now faced with the ” combination of the three basic industries receiving lower export prices than last year. “We have run into quite serious trouble with the drop in prices for wool over the last

three weeks,” he said, “and, unfortunately, the signs are not bright for our meat exports.

“It is known of course that there will be a substantial deficit in the dairy account this year because the guaranteed price is higher than the market realisations.” The Cabinet today spent a considerable time discussing the economic position.

Mr Holyoake said he and the Minister of Finance (Mr Lake) were dis-

cussing whether a statement on the economy should be made before Christmas.

Although the country’s economy had been running “a little too fast” for about 18 months, it had slowed down in recent months, he said. “Our financial policies which we implemented about 12 months ago are certainly having some effect, and our studies

now are to determine whether this effect is adequate.”