The economy

Press, Volume CXV, Issue 34031, 20 December 1975, Page 14

The economy

Sir, — Criticisms by Messrs Rowling and Tizard of the new Government after only four days in office, suggest a keen sensitivity to revelations on the state of the economy. The economic report from the Trea-

sury showing a likely deficit of $l2OO million this financial year and urging immediate remedial action makes nonsense of Mr Freer’s claim that Labour would have reduced petrol tax to lessen the present increase. In less than three years Labour doubled the price of petrol and raised the tax from 21 cents to 42.4 cents a gallon. It is little wonder that it chickened out on the last increase before the election. The state of the economy was known to Mr Rowling before the election yet he allowed it to slide. Now, when the new Government moves to correct it, he and his deputy assume the role of doomcasters. — Yours, etc., J. F. GARVEY. December 19, 1975.

Sir, — 1 pick up the discussion, extracting a portion of your editorial in today’s paper: “Provided that higher charges are not used to justify a new round of wage increases, the results must be a dampening of the rate of inflation.” C.A.R.P. thinks otherwise. The new Minister of Trade and Industry had two pertinent things to say soon after election. The article printed in your paper on December 3 had the heading, “Profit Margins likely to rise,” and said that the new Government would review the pricing procedures of the former Government and that manufacturers, wholesalers and retailers are likely to get bigger profit margins. The Minister seems to gleefully announce the axing of the M.R.P. scheme so the stage is set for hefty price rises and the consumer cops it again, when other factors are considered. How about a bit of belt-tightening from the manufacturers and company? — Yours etc., R. A. COOK. December 19, 1975