Govt’s proposals welcomed

Press, Volume CXI, Issue 32531, 15 February 1971, Page 14

Govt’s proposals welcomed

(New Zealand Press Association)

AUCKLAND, February 14.

While some trade-union officials expressed concern as aspects of the Government’s weekend decision to impose restriction on wage increases, the Auckland Chamber of Commerce and the Auckland Manufacturers’ Association welcomed it as an inevitable but sensible step.

The president of the Auckland Manufacturers’ Association (Mr D. O. Walker) described the proposed wagerestraint guidelines as “a forward s‘ep in the attempt to slow down the rate of inflation in this country.” Mr Walker said that thinking people in New Zealand should welcome the Government’s plan to impose restraints in all fields of the

economy. Many manufacturers had been adversely affected by fixed prices over the last few months, while experiencing increasing wage costs. Nobody actually wanted restraints on the freedom of economic activity, Mr Walker said, but enough people realised that the country’s economic health depended on a slowing down and eventual control of inflation. Federated Farmers reacted to the proposals with a plea for no further price increases. Mr W. R. Martin, president of Auckland Federated Farmers, said that since it had indicated approval of wage increases of up to 8 per cent, the Government must automatically approve price increases by manufacturers and increases in all consumer services. “The present high coststructure in New Zealand has already placed an almost intolerable burden on the fanning community,” Mr Martin said. “Any further cost increases will put some farm-

ers out of business, and reduce many others to a marginal state where a bad season or dry spell could prove quite disastrous.” Mr R. W. Haworth, president of the Auckland Chamber of Commerce, described the Government’s attitude as “one of compromise.”