'No major change in policy'

Press, Volume CXIV, Issue 33671, 22 October 1974, Page 18

'No major change in policy'

(New Zealand Press Association) HAMILTON, October <2l. Wednesday’s Government announcement on the economy will not herald any major retrenchment in economic policy.

Speaking in Hamilton, the Minister of Trade and Industry (Mr Freer), said that although some Government expenditure would be restricted, it would certainly not be such as to stop the continued development of the country. He told the Waikato branch of the Economic Society of New Zealand that the next 12 months would be difficulty for the nation. “There are some things we may have to do without,” he said. “But we cannot put such • a restraint on the economy that the development of future export markets will be restricted.” Referring to'the impending statement on the economy, Mr Freer said that the policy would still be one of careful studied adjustment to the economy rather than sweeping bank measures. These, he said, were too common overseas and were frequently disastrous in their effect on our economy in the past. “I can say that the GovI emment will continue to re- - strain purchasing of goods j with a high overseas content,” he said. This does not mean that there would be a reimposition of import licensing. Licences issued under the present schedule would be continued, and the only variation would be in areas where

goods at present exempt from import licensing were being imported in excessive levels. Discussing economic stabilisation measures, he said that the Government had no intention of allowing itself to be panicked. “We cannot survive any major economic challenge by closing the factory door and putting people out of work,”; he said. “This is the time to im-j prove productivity. We are determined to maintain full employment,” he said. “The growing army of unemployed overseas would do nothing to assist a country’s; economy.” History had recorded this approach to an economic problem as having failed, he said. The old measures of increased taxes, slashed exports and rising unemployment had failed, he said. It was vital to look for new solutions to the problem, and New Zealand, with a low unemployment figure, was attempting to do this. “The rate of inflation is deplorable. It satisfies none of us and there are few nations in the world more seriously affected by the impact of overseas prices than New Zealand,” he said. Mr Freer said he felt that compared to the soaring inflation rates in America, Japan, Canada and Australia. New Zealand was faring well.