ECONOMIC POLICY

Press, Volume CIX, Issue 31981, 7 May 1969, Page 9

ECONOMIC POLICY

Country Party Critical The Government’s aim was to create a favourable image to fool enough people so that the power clique could continue to rule, the president of the New Zealand Country Party (Mr T. F. Taylor) said in a prepared statement. “But the disillusionment will come after the election,” he said. “The harsh facts cannot be long hidden." Farmers knew that the big problems of the country had not been solved but only papered over, he said. New Zealand now and for a long time would depend on agricultural products to earn 90 per cent of its foreign exchange. The Country Party did not agree that whatever was favourable in New Zealand should be attributed to the wise actions of politicians and all that was bad to overseas factors beyond their control. Dangers to the New Zealand standard of living arose from the economic squeeze which threw 8000 men out of work while pleasing international and domestic moneylenders, Mr Taylor said. The squeeze merely checked rising prices and laid the foundation for the next round of inflation. It reduced production and led to higher interest rates. The increased costs of the squeeze must eventually be recovered in higher prices, but the Government urged farmers to work harder while charging higher interest rates. Farmers were now using their wives and children as unpaid labour to try to keep costs down, Mr Taylor said.