More inflation unemployment — Sir Thomas

Press, 28 December 1978, Page 2

More inflation unemployment — Sir Thomas

PA Auckland The Government’s policy of “borrow or bust” would have its day of reckoning, san' Sir Thomas Skinner, president of the Federation of Labour, yesterday. He forecast more unemployment and double-figure inflation for 1979, saying New Zealand had suffered a longer recession than any other country in the developed world. Living standards were lower now than they were in 1973, and real incomes were well below all other countries in the O.E.C.D. “Is it any wonder that technicians and skilled workers continue to leave New Zealand permanently and in greater numbers than ever before?” Sir Thomas asked. It was difficult to estimate how many people were unemployed, he said, but no jobs were available for 100,000 people who were willing to work.

Sir Thomas said it was not sufficient to say that some unemployed did not wtnt to work, for they were products of the system. If people were able to draw the dole when work was available then the whole system needed restructuring.

He suggested that a bureau of employment, not a department of unemployment. was what New Zealand needed. Such a bureau should have research facilities and be able to create jobs ir. areas where these were needed. It would have to be satisifed that no work was available before unemployed could draw the dole. Sir Thomas said that this year 27,000 school-leavers would be thrown on the

employment market, and there seemed little hope for them. The Government had a greater rate of borrowing than any previous government.

Nc platitudes or excuses could justify the economic mess that New Zealand would face in 1979, Sir Thomas said. Terms of trade, which should be an indication to the Government of the steps to be taken, showed no signs of early improvement. “Internally, we can look forward to a massive debt which will lead to further unemployment and doublefigure inflation,” he said. “There is no way we could talk our way out of the mess.” Sir Thomas also criticised the Government’s action in initiating an 11 per cent oncall Government savings stock which, he said, would only stimulate interest rates and keep them high. It might have withdrawn some money from circulation, but most of the money invested in the stock would have been transferred from other investments.

Sir Thomas suggested that a top-level conference be called urgently to try to pull together the various sections of the nation. He suggested that Federated Farmers, the F.0.L., the Employers’ Federation, the Public Service Association, manufacturers and freezing companies, along with the necessary Government and departmental backing, join this conference.

The Government should stop intimidating the tradeunion movement and get dowr to the basis of present problems, he said.