The leaders say ...

Press, 31 August 1977, Page 28

The leaders say ...

The Prime Minister (Mr I Muldoon) was inted to give! his views on the state of thei economy, but was not able to comment as he is at present overseas.

■I have a structural imbalilance w’hich makes it virtually impossible to resolve i our balance of payments problem in the immediate [future.

What we have to do is substantially increase the volume and value of our exports and at the same time maintain a tight hold on importing. I believe we should be placing the emphasis on further processing of our agricultural products.

| Governments can devise j an y number of incentives for the i business and farming worlds ’ but until the wage and sai lary earner is motivated to i make that extra effort | those incentives won’t be ■ fully effective. The best pos- ' sible incentive for the wage and salary earner is tax relief. Many are in the position where it’s just not worth working longer, hours for extra income. ’ The tax system must be ’ overhauled. ' I believe if New ‘ Zealanders were presented ' with a programme to get us out of the mire they would respond, provided they are • shown clearly that they will ! share in the result. Messages

of gloom and despondency |are not the way. All that is doing is depressing the population and causing tens of thousands to pack their bags and leave. We will not produce the necessary extra wealth if many of our best (workers depart from the | country. They must be given isome hope for the future, and additional reward for their efforts now. The Government can give the lead with personal tax relief. Industry can act to give workers a genuine sense of involvement.