Mr Kirk Criticises Economic Report

Press, Volume CIX, Issue 31941, 19 March 1969, Page 26

Mr Kirk Criticises Economic Report

(New Zealand Press Association>

WELLINGTON, March 18.

The Monetary and Economic Council’s report on the economy, released yesterday, had come down heavily on the side of present policies, the Leader of the Opposition (Mr Kirk) said today.

“No-one knows better than the public that the present policies are policies of rising prices, high costs, inadequate pensions, unemployment, and credit squeeze, all of which have gone to make life more difficult for the average person and which have created substantial hardships for those on the smallest incomes,” Mr Kirk said in a statement

When the council endorsed the continuation of those policies, all those in the 55-60 age i group must be concerned! about their future. “An unabated continuation of present policies means that they face discouraging retirement prospects, the prospects of falling money values and constantly rising prices."

On the other end of the scale, the younger people striving to obtain a home must look aghast, in view of the present cost of living, at the council’s recommendation of increased interest rates. Mr Kirk said.

“Recovery, as it is called, is achieved in these circumstances by cutting into the living standards of wage and salary earners. This seems a poor encouragement to people to work harder and produce more.

“Such policies are open to serious question, for, since the middle 19505, each successive round of credit squeeze and

financial restriction has been a little more severe than that which has gone before and has accomplished a little less," Mr Kirk said. “Each round of credit squeeze and financial contraction has inexorably led to another.

“There is no guarantee that continuing on this course will not simply lead to more taxation, more financial restriction, higher prices and lower money values.”