P.M. accused of manipulation

Press, 12 October 1976, Page 6

P.M. accused of manipulation

PA Wellington The Opposition spokesman on finance, Mr R. J. Tizard (Otahuhu), yesterday charged the Prime Minister (Mr Muldoon) with manipulating the official figures on inflation by timing price increases to make sure that they were not. immediately reflected in the official figures.

This was done so that wage-earners would be given the smallest possible wage order, Mr Tizard said. Mr Muldoon’s record for accuracy in predicting inflation rates was abvsmal, he said.

“Earlier this year he said that inflation in the second half of the year would be less than 5 per cent, but already it is 3.2 per cent, and we are only half way through that period,” Mr Tizard said.

“The important point about | the September inflation figures was that they showed the underlying rate, without ’any Government-inspired price hikes, to be much the same as it has been all year — about 3 to 3J per cent. “The 2.7 per cent increase in food prices in the month of September showed how effective the so-called price freeze is — a point also glossed over by the Prime Minister,’’ Mr Tizard said.

The Government could take no credit for any rise that might have taken place in New Zealand’s credit rating, which had always been good. If it had gone up this was caused bv the boom in exports, and not by any action of the present administration, he said “Its internal deficit before borrowing, at SB47M, is much greater than last years budgeted deficit.”