Overseas debt ‘highest ever'

Press, Volume CXII, Issue 33093, 7 December 1972, Page 2

Overseas debt ‘highest ever'

(New Zealand Press Association) WELLINGTON, December 6. The heavily-defeated National Government was desperately trying to cover its tracks as it prepared to leave office on Friday, said the Labour spokesman on finance, Mr R. J. Tizard, the member of Parliament for Otahuhu, today.

"In a series of state-of-the-nation statements, spokesmen are claiming great achievements for their Government,’’ said Mr Tizard. “The statement today by the Minister of Finance (Mr Muldoon) typified the emptiness of these.”

Mr Muldoon had ignored the social and economic mess that his policy had produced, Mr Tizard said.

“In fact, the real health of the economy is not what it was when the second Labour Government left office in 1960.

“He has failed to control inflation, to deal with unemployment, to expand productivity, cope with rising crime rates, or even maintain the level of health services,” Mr Tizard said. The overseas debt had increased more than S4oom since March, 1961, to $653.5m. RATE OF INFLATION “In September, 1959, prices were going up at 2.1 per cent a year, and a year later at 02 per cent,” he said. “In September this year, they were going up at 6.5 per cent and the March, 1961, dollar was worth only 58c. “In November, 1960, the outgoing Labour Government left 276 registered unemployed; there were none on relief work. The National Government leaves 5362 registered unemployed, and another 1979 on relief work." He added that vacancies in November, 1960, at 8760 were 156 per cent higher than the number at November 17, 1972, at 3414, in spite of a widened industrial base. In the year ended Decern-

ber, 1971, productivity was increasing by 0.7 per cent, but in the year ended March, 1961, as Labour left office it was going up at 3.8 per cent. Production rose only 1 per cent in the year ending December, 1971, compared with 6.2 per cent in the year ended March, 1961. In 1960, 9.5 per cent of the national income was spent on social security. In 1972-73, the expenditure was 8 per cent. “Tax per head has risen from $280.10 in 1960-61 to $655.42 in 1972-73. Building costs on a national average are up 74.9 per cent since 1960,” said Mr Tizard.