“Tightening” Curbs

Press, Volume CVI, Issue 31319, 15 March 1967, Page 1

“Tightening” Curbs

(N.Z. Press Association/ WELLINGTON, Mar. 14. The Minister of Finance (Mr Muldoon) said tonight any move in the Government’s building restraint programme would be towards tightening restraints rather than relaxing them particularly in the field of Government expenditure.

“It is vital that only work of an essential nature should be commenced at the present time.” he said. Addressing the annual conference of the Master Builders’s Federation in Invercar-

gill. Mr Muldoon said: “In spite of building programming, there has been a continual increase in the value of permits issued and at this stage there has been no decrease.”

Under its building programme policy the Government has to approve all contracts worth £30,000 or more. Mr Muldoon said that since building programming was introduced in June, 1965, it had eased the pressure on the building industry by curbing the peak load of excessive demand.

The Government had repeatedly stated that the programming regulations were a temporary measure and would be relaxed or removed as soon as circumstances permitted. “With its original objective largely achieved, the industry could, in normal circum-

stances, justifiably expect this to be done. “In the current economic situation, however, with the need to restrain internal spending on capital works and reduce the drain on overseas funds for essential building materials, plant and equipment contained in modern construction, a combination of measures is necessary and building programming at an appropriate level of restraint, must be continued in the meantime,” said Mr Muldoon. Wider Review The effect of the programming would be kept constantly under review and adjustments would be made as required to ensure the maximum possible level of building activity consistent with the over-all objectives of Government economic policy. The commencement of new Government building and construction works would be heavily restricted as at least 75 per cent of the works vote for the coming year consisted of work already in progress, the Minister said.