More than needed — Labour

Press, Volume CXV, Issue 34030, 19 December 1975, Page 1

More than needed — Labour

IN.Z Press Association) WELLINGTON. December 18. The Government’s increases in postal, rail, and electricity charges "ere tonight called savage by the deputy leader of the Opposition (Mr Tizard). He said the increases were well in ex-' cess of what was needed. Mr Tizard, the former Minister of Finance, said that the Government had been politically motivated in attempting to link the Opposition with a need to make such large increases. The Labour Government would probably have raised' mail charges two cents, rail charges 20 per cent over all,and bulk electricity charges 37.2 per cent Coastal shipping com-. panies would soon seek approval to lift their charges 34 per cent in line with the

rise in railway freight 1 charges, he said. Mr Muldoon would balance the books of the country closer to nought than for a long time. The Government might in. the process make sure that it would reduce the demand for Government capital expenditure by reducing the need for a replacement ferry for the Aramoana and the need to buy more railway waggons. The increased charges would indirectly add to the ‘cost of living, as they were ■ reflected in higher retail prices because of the higher freight and electricity charges. “PROFIT FOR GOVT” The former Minister of Railways and of Electricity, Mr R. L. Bailey, said that when the Government was asking wage and salary 'earners to hold back on wage claims the increased charges would bring considerable profits to the Govern-1 ment. The 60 per cent increase' in bulk electricity charges

would bring in a profit of'r 'more than s3om a year. '? “Then add on the 5 per‘a cent plus for supply author-; t ities and we will see added Ip just on 1 per cent to our I a cost of living. a “I was proposing to f recommend to a Labour! c Government that we in-i r crease rail charges at a flat s

rate of 20 per cent in the New Year. My recommendation for power charges was to bring the Electricity Department account into balance. This would have meant an increase of just over 37 per cent — which is a far cry from the 60 per cent now announced,” Mr Bailey said.