P.M. sees 'light' for economy

Press, 15 September 1976, Page 15

P.M. sees 'light' for economy

PA Wellington The Prime Minister (Mr Muldoon) said he could see a “light at the end of the tunnel” for the country’s econo|mic situation. “But we’ve still got to get ithrough the tunnel,” he said I at a press conference. i Economic measures taken by the Government earlier in [its term were now working, jand his major area of con-! 'cem was private importing. | Analyses of this indicated: (that there was a good deal' iof forward ordering of oil; and oil-based products, probjabiy as a hedge against a, (possible price increase about) the end of the year Basic-i [ally, however, volume was| about normal but value was! up. 1

Mr Muldoon said he had expected a rise in the price of industrial imports as a result of increased oil prices, but he thought there would be some delay in the industrial price rises taking effect. He referred to what -eemed to be a price rise in the general level of prices received for farm exports. Mr Muldoon predicted that the consumer’s price index would be down over the third [quarter of this vear. and [down again in the fourth [quarter. He believed the index for the first three month-, iof next year would be ' not Itoo bad." , But the Prime Minister I would not rule out a further imim-Budget before the end of this year. The Govern ment would take things as 'they came.