Opposition hits price rise

Press, Volume CXIV, Issue 33435, 17 January 1974, Page 16

Opposition hits price rise

(Neto Zealand Press Association! WELLINGTON, January 16. It was now apparent that none of the 27 sets of price regulations passed by the Government during 1973 had been effective, the Deputy Leader of the Opposition (Mr Muldoon) said today.

He was commenting on the consumer price index figures for the fourth quarter.

“The fourth-quarter increase of 2.4 per cent is the same as that for the first quarter of 1973 and twice the rate of increase of the fourth quarter of 1972,” Mr Muldoon said. “The ‘dynamic new policy to contain inflation’ which Mr Kirk promised prior to the election has produced price increases of 10 per cent in his first year as Prime Minister —and there is no sign of slackening—with widespread price increases predicted for 1974.” In addition the taxpayer was now paying over sloom in subsidies to hold prices this year, Mr Muldoon said. “Furthermore, the predicted surge in private import payments for the May, 1974, year just announced will turn the surplus of slBsm on our overseas current account for the November, 1973, year into a deficit of about s2oom for the year ending May, 1974, unless export receipts increase sharply —which appears unlikely,” he said. “The cost in overseas funds of the increase in oil prices and imports from the petro-chemical industries is likely to be in excess of sloom a year in addition.

“A rate of deficit of this magnitude in our overseas reserves—which are now under $9OOm —would raise the question of further overseas borrowing or a devaluation of the New Zealand dollar before the end of 1975,” Mr Muldoon said.

The Leader of the Opposition (Mr Marshall) said: “This massive 10.2 per cent increase in the cost of living for 1973 is undeniable evidence of the failure of the Labour Government to deal effectively with inflation. “They knew all the answers to inflation in 1972 and promised the country stable prices if elected,” he said. “They were elected with a mandate to do that; but they have not only failed to produce their promised stability, they have produced a rate of inflation almost twice as high as the previous year under a National Government,” Mr Marshall said.