Portugal plans mixed economy

Press, Volume CXV, Issue 33775, 22 February 1975, Page 15

Portugal plans mixed economy

(New Zealand Press Association—Copyright)

LISBON, February 21.

The Portuguese Government today released an emergency three-year economic plan designed to modernise the country’s outmoded society and set it on the road to a mixed economy, United Press International reported.

The plan envisions a major land reform programme to break up the big farming estates and Government intervention in key industries. By the same token, it offers the welcome mat to local and foreign private investment that would boost employment and exports. “We are not seeking a reform that is produced in a brusque and violent form, but that does not mean it is any less revolutionary,” the 184-page document said. The plan offered extra [social benefits, such as the i creation of an unemployiment compensation pro'!gramme, but gave a warning 'that the public would have to tighten its belt and work harder for less in the near future. “It is necessary to commence with pragmatism, taken into account the existing realities and giving us time to realise certain experiments before farreaching institutionalised (schemes can be definitely [consegrated.” it said. To achieve success, the! plan said, the public must j I co-operate with the Govern-! ment in the effort and not; expect too much too 500 p,.. It also asked the popu-; latten to ignore “the | demagogic and extreme Left!

tendencies that have been revealed and have caused instability and loss of confidence in the private sectors that sincerely want to help construct a new society,” To counter this loss of confidence, the Government said that existing private investment would enjoy the [same benefits as it received [under the old regime and [that new investment would receive guarantees. .It said the Government plans to take 51 per cent control of several key industries, but that the current owners would be compensated for any loss. These included mining, petroleum, basic steel works, petrochemicals, electricity, tobacco and the manufacture of weapons. The State also plans to create a public company to handle all imports of consumer goods and the sale of basic foodstuffs.

In the agricultural sector, the plan said that the State would either force the big : landlords in the south to (rent out their farms to 1 smallholders or expropriate ;them unless they were adequately cultivated. Ownlership of the more profitable (irrigated farms would be restricted to 15Q*hcres.