Market economy is ‘key to N.Z. ills’

Press, 22 January 1979, Page 2

Market economy is ‘key to N.Z. ills’

: PA Wellington ; The President of the New; (Zealand Chambers of; (Commerce (Mr J. R.i (Greenfield) has described the [pronouncement by the!; i Organisation of Economic] (C o-o peration and; Development on the New/ Zealand economy as! “undoubtedly a valuable!, contribution to our thinking.” It must be closely studied with the respect it deserved, he said. But Mr Greenfield described New Zealand reactions to the report as providing “a bolthole down; which everyone dives to!' avoid facing the truth.” The ' statements provided an! opportunity to criticise and 1 to generalise sectional! 1 views, he said. “But don’t we have to! (face up sooner or later to;' (some fundamentals and: (decide a longer-term ' (strategy and philosophy? I “In the economic world: (everything is started and/ (kept going by individuals. (As machines are kept going [by fuels, human beings are (kept going by incentives, j “The sickness of the seventies goes to the roots/ of our industrial civilisation; — the market economy. We i

should all know that the unprecedented wealth and living standard so many enjoy today is a product of! the industrial system. The’ prime mover has been the; (market system in an air of! freedom, a system now (threatened by suffocation for ——————

lack of freedom,” Mr Greenfield said. “If it remains our ; philosophy to retain a ■ competitive economy with individual rights of choice and reward, then it remains; lin our hands, without! overseas help or advice, to i secure that freedom.” Mr Greenfield said the ; structural requirements to achieve this included: — — The need to haul back ' the level of public spending from the present 40-plus cents in the dollar of every worker’s earnings, to something like 30 cents,; which the public could live with. — To take the shackles! off business by removing!,: unnecessary and i unjustifiable controls by ' central government and ‘unfair competition by the ! State. — To persuade those who! controlled the source of labour that it was in the interests of their members ; :to stimulate profits so that, ! they could share a larger, and not an ever-diminishing, ■ cake. — To allow the private sector to create and retain ; sufficient profit to finance the costs of inflation so that it could invest in an ,expanding future.