Chamber Discusses N.Z. Inflation

Press, Volume CIX, Issue 32313, 3 June 1970, Page 18

Chamber Discusses N.Z. Inflation

Present inflation in New Zealand was due mainly to a failure by the Government to take corrective measures, the president of the Canterbury Chamber of Commerce I (Mr J. M. Tocker) said -last evening.

“A few days ago," be said, “the Minister of Finance (Mr Muldoon) criticised what he called weak employers for granting substantial wage increases and thus buying industrial peace at any price. “1 would agree that some! employers have been weak “But if employers generlally are buying peace at any I price this is mainly the result 'of a situation of the Governiment’s own making The Can'terbury Chamber of Commerce and many other groups -have been saying for months past that we have an infla!tionary situation in New Zealland. with demand for nearly all goods and services outl running the supply, and as a result a strong upward pressure on prices and wages “One of the first duties of I any Government must surely I be to maintain balance in the (economy, to see that we retain stability without stagna- : tion and growth without inflaI tion. This is a delicate task which calls for constant attention and small early ad(justments to avoid much bigIger subsequent adjustments “In the last few months," Mr Tocker said, "the Government has signally failed to make the relatively small adjustments that would have

gone a long way towards redressing the balance. It has certainly decided to bring more new cars into New Zealand, then to impose building controls and now to raise interest rates to the trading banks.

“But this is too little and too late. The effects of the car imports will be too slow to have the immediate effect needed, the building controls seem to have made little difference yet. and the banking restrictions are the wrong kind of measure, though they could have had a greater moral effect if introduced three months ago.

“What is needed now is to have either more goods or less money available to New Zealanders. "More goods could easily be provided by a substantial easing of import restrictions. Here again it is nothing new for the Canterbury Chamber of Commerce to advocate this. Naturally reasonable tariffs would first need to be imi posed where necessary to pro'tect New Zealand manufacI turers.”