Inflation still big. N.Z. problem

Press, 16 July 1980, Page 11

Inflation still big. N.Z. problem

PA Wellington •New Zealand has entered the 1980 s with “severe inflation and historically very high unemployment,” the Planning Council has said in its annual report tabled in Parliament. It emphasised the need to reduce the rate of inflation and the level of unemployment if New Zealand is to return to stable growth and improve the standard of living. “It is vital' that the collective efforts of the Government, unions, and employers should be directed to the urgent objectives of reducing the rate of: price.- increase and the level of. unemployment. A continuation of rapid inflation, and with it

high interest rates, business uncertainty and poor industrial relations, will prejudice the prospects of renewed and stable growth for New Zealand and improved welfare for New Zealanders,”, the report said. “How to manage conflict is .one of the important issues to be faced in planning. The mere existence, of conflict is not in itself a cause for concern. Our aim must be to make it as creative as possible, not destructive.”

The Planning Council is chaired by Sir Frank Holmes;, its members include the Minister of National Development (Mr Birch), the secretary to the Treasury (Mr N. V. -Lough) and an economist Dr Donald Brash.