State-of-nation report by Mr Marshall

Press, Volume CXII, Issue 33094, 8 December 1972, Page 2

State-of-nation report by Mr Marshall

(New Zealand Frets Association) WELLINGTON, December 7. The National Government was handing over the administration of the country with the economy buoyant and with good prospects for the future, provided inflation could be kept in check, said the Prime Minister (Mr Marshall) today.

"For the first time in our history, New Zealand this year became a creditor nation with our overseas reserves exceeding our overseas debt,” he said.

“The New Zealand dollar is now a strong currency. At the end of October the overseas funds stood at sB2lm. The figure for November will show some fall, reflecting the repayment of a £2om loan in London. But the trend is for a steady increase and if this continues the reserves could reach slooom. EXPORT GROWTH “Export earnings are high with good returns for primary produce, and receipts from exports of manufactured goods are at record levels and growing steadily,” said Mr Marshall. The E.E.C. agreement for continuing trade with Britain, the N.A.F.T.A. agreement with Australia, and the diversification of export products and markets provided a firm base for the expansion of overseas trade. "Within New Zealand we have emerged from a long period of economic difficulty beginning in 1967 with the fall in wool prices, followed by the recession and devaluation, followed in turn by rampant world-wide inflation which hit New Zealand severely. "From the beginning of this! year we have steadily reduced inflation and have now reached comparative stability,” Mr Marshall said. STILL FEARS "The excessive price and wage increases have been reduced to manageable proportions. This is still a sensitive area and further inflation could be triggered if stabilisation policies are not firmly held.”

Policies introduced during this year to stimulate economic growth had been effective. Taxation reductions, the release of finance for housing and for development, improved export incentives, higher investment allowances, and greater purchasing power from increased social security benefits, had all combined together to bring about a strong recovery in business activity. In the three months to September, retail trade had enjoyed the largest rise in 12 years, reflected in turn in greater activity in manufac-

taring, servicing and wholesaling.

“In the Government sector, revenue and expenditure are very close to the estimates presented in the Budget and the Supplementary Estimates.

"The deficit before borrowing is expected to be between s24om and s2som. This degree of deficit has been justifiable in terms of stimulating the economy to a higher level of activity but further expansionary action through the Government sector in the present buoyant conditions would not be prudent,” said Mr Marshall. “If present policies were to continue, the country could look forward to a period of real prosperity and rapid arnwtn ” The National Government had completed the first thor-

ough review and up-dating of social security. The accident compensation scheme should begin by October 1 next year, and legislation for equal pay for women for work of equal value would take effect on April 1 and would be phased in over four years. EDUCATION The percentage of the nation’s income now devoted to education had increased from 3.3 per cent to 5.2 per cent. The teacher shortage had been eliminated and progress made in reducing class sizes. "The great majority of people in New Zealand are well housed. There are some who are not, but the availability of finance to build or buy a home is adequate for most people and at present the building industry is fully committed. The rate of house building is now at a record level.” The defence force was well equipped and ready to carry out the collective security and treaty commitments to which New Zealand was a party.

LOSS REGRETTED tiny "supporting what we be- “ One of my deep regrets in lieve to be for the good of this change of Government,” New Zealand and opposing said Mr Marshall, "has been vigorously what we believe the loss of Mr Maclntyre and to be against the best interI believe that this regret is ests of the people,” Mr Marshared by many people. I do shall said.

not think his work for the environment has been fully appreciated. “The constructive policies initiated by the National Government over many years for the protection and preservation of the environment have been overshadowed by the Manapouri controversy. On that issue the Government followed what it believed to be an honourable and responsible course in refusing to break contracts in the face of popular pressure. PLANS MADE “The over-all planning for New Zealand’s development for the next 10 years, not only economically but socially and culturally as the National Government saw it, has been set out in the national development programme and in the detailed plans and tergets of the sector councils under the supervision of the National Development Council.” For the next three years the National Party in opposition would subject the actions and policies of the Gover~.;..ent to the closest scru-