Commission To Study Economy

Press, Volume CVI, Issue 31277, 25 January 1967, Page 1

Commission To Study Economy

JNew Zealand Press Associaiion/

WELLINGTON, January 24.

The Cabinet is giving urgent consideration to general lines of policy on the country’s economic situation and has set up a committee to tackle the question, the Prime Minister (Mr Holyoake) said this evening.

He said the Cabinet concentrated on economic reports at its meeting this afternoon and will return to them at its session tomorrow morning. The committee set up by the Cabinet is composed of Mr Holyoake, the Deputy Prime Minister (Mr Marshall), the Minister of Finance (Mr Lake), the AttorneyGeneral (Mr Hanan), and the Minister of Labour (Mr Shand).

Mr Holyoake recalled that since the Cabinet last met on December 19, there has been “a very serious fall” in the price of wool. Moreover, the Wool Commission has been buying heavily, which means a drop in New Zealand's expected overseas earnings. “Serious Situation” “This reveals a considerably more serious situation than existed at the time of my New Year report,” said Mr Holyoake. He said that, arising out of preliminary discussion, some general lines of policy had evolved.

“We are giving urgent consideration to these,” he stated. “This consideration I would expect to develop almost certainly into preparation of further papers and policy designed to correct the situation.”

Questioned at his press conference on other matters, Mr Holyoake said the Cabinet

did not have the new Import licensing schedule before it today and had no indication of when it might be ready for consideration.