Substantial Drop In Deficit Forecast

Press, Volume CVIII, Issue 31657, 18 April 1968, Page 10

Substantial Drop In Deficit Forecast

(New Zealand Press Association)

AUCKLAND, April 17.

The Minister of Finance (Mr Muldoon) said in Auckland tonight that New Zealand’s current deficit could be as low as $2O million by the end of the financial year. A year ago the deficit was $132 million. ,

“This is what all the agony has been about in the last 12 months,” the Minister told North Shore members of the National Party. “We have made very considerable progress but we are not out of the wood yet.” The deficit reduction had been brought about by a fall in imports, an increase in exports and a cut in invisible payments. Surveying export prospects. Mr Muldoon said there were butter and cheese surpluses all over the world —and prices were under attack. "The outlook for wool seems to be a gradual move up in prices but I emphasise the word gradual,” he said.

“The Institute of Economic Research predicts that it will go up to 28c a pound next year but I very much doubt if it will go as high as that.” Meat had been bringing high prices, but Mr Muldoon did not think the same prices could be held next year. Production was increasing, however. Subsidised Jobs Unemployment was much too high for this time of the yeer, Mr ■ The Government was taking steps to provide jobs such as forestry and maintenance,

and if there was not sufficient employment he would ask local bodies to find jobs on a subsidised basis. Mr Muldoon said Government action to overcome the economic difficulties were proving effective. “I can see light at the end of the tunnel,” he said.

“We’ve got a little way to go yet, but if we carry on the way we are going, giving stimulus in areas where it is required and exercising restraint where it is needed, we'll get to the end of the tunnel.”