PANIC BUYING DEPLORED

Press, Volume CXIV, Issue 33514, 20 April 1974, Page 2

PANIC BUYING DEPLORED

(N.Z. Press Association) AUCKLAND, April 19. Balance - of - payments problems caused by high oil prices could be worsened by other factors, said the Minister of Defence (Mr Faulkner) in Auckland.

He was speaking from i notes originally prepared for delivery by the Prime Minister (Mr Kirk). Mr Faulkner said that one of these problems was the possibility of further falls in prices of primary exports. ‘‘Here we are very much at the mercy of circumstances overseas.” he said. The other problem was

that investment might fall, thus inhibiting progress.

“We are much more dependent on our own efforts in averting this prospect, and the Government’s stabilisation policies are clearly aimed at oing so,” he said.

New Zealand was well: • placed to maintain good i economic momentum over the next year, and beyond.; It had built an expertise in; handling balance-of-payment problems. It would be unrealistic to expect the same order of expansion in the near future as there was last year when industry was taking up the slack, but there would be substantial increases in production. "Given present international trends and the im-

[pact of higher oil prices on domestic inflation—an impact adding 2 to 3 per cent to the general rate of inflation—it would be unrealistic to expect that we can significantly improve on last: year’s inflation patterns." Mr Faulkner criticised a; tendency toward “panic buy? ing,” and also the unre-l stricted building of office! space as investment. Panic buying of some consumer products had wor-; sened the situation. He had; heard of one housewife who! bought more than 80 packets • of a well-known brand of' soap powder. This would l supply her for four years. • As with oil, there was a ' shortage of building resources, particularly labour and materials.

“We need more houses,) schools and hospitals and fac-i . tories. Can we afford, there-; fore, to condone the unrestricted building of office: space, often built as an investment?"