Reply made to economist

Press, Volume CXV, Issue 34012, 28 November 1975, Page 18

Reply made to economist

“I would agree that we have an economic situation “of Great Depression dimensions’.” says Mr Wayne Coffey, economist to the New Zealand Manufacturers* Federation, in a 2500word reply to the Macarthy Professor of Economics at Victoria University, Prof B. P. Philpott. Professor Philpott had; criticised an address given: by Mr Coffey at the annual convention of the federation. The structural chaos, i sharp drops in output and! employment, etc., which oc-| curred in the 1930 s and again in 1967-68 as the re-; suit of inappropriate econ-’ omic policy seems to have! been avoideo largely as a re-< suit of an effective counter-) cyclical economic policy, Mr’ Coffey says. Another major factor* which has allowed us to avoid the circumstances of the Great Depression has been the tremendous change in the structure of the economy, particularly as regards the development of both more intensive and extensive secondary industry and the lessening of our dependence; on imports: principally be-' cause of import substitution. It may be a simplification;

to cite stagnant production; in agriculture as the cause* of our present plight. 1 would have thought protection against out primary ixports by overseas buyers and the collapse of the commodity price boom may also have had something to do with it. says Mr Coffey. Mr Coffey says that Pro-1 fessor Philpott, in his criti-I cisms, was "defending the! wrong fort.” Professor Phil-| pott had been defending the “Victoria model” of the Newj Zealand economy, whereas j Mr Coffey’s original com-! ments had been directed at the Lincoln model.