Recovery ‘in distance'

Press, Volume CXV, Issue 33818, 15 April 1975, Page 1

Recovery ‘in distance '

(Xew Zealand Press Association) WELLINGTON, April 14. Any dramatic recovery of the economy still appeared to be some distance off. the Minister of Finance (Mr Tizard) told the conference of community leaders today.

The main issues facing the nation were the balance of payments, unemployment, wages, and the “rising problem of energy.”

The development hoped for late last year at the Government’s last “state of the nation” conference had not taken place, Mr Tizard said.

He told about 100 leaders from all sectors of the

economy in the Legislative Council chamber of Parliament House that there were some signs inflation overseas was moderating. For New Zealand, export returns were the key to economic recovery. There was some optimism That export prices might be len the increase, but not enough to bring the economy back into line.

Deflationary policies by some overseas nations had caused unemployment, said Mr Tizard.

New Zealand might need sorpe adjustment to dampen inflation, but the longer-term trading pattern did not justify harsh measures. Even if the downturn in the economy persisted. New Zealand had reserves of ssoom and opportunities for further borrowing. But these opportunities were not unlimited. and neither was the • country’s capacity to repay the loans.

There were some signs that The situation was improving, although the country was not yet out of trouble. “We have hit the bottom of the hole anyway,” he said. Restraints were needed, 'but solutions would be impossible if some parts of the community refused to accept restraints.

There was no doubt that farmers were being asked to shoulder a burden, perhaps unreasonably, while some were not taking their share of restraints, said Mr Tizard.