Warning given on spending

Press, 9 December 1980, Page 6

Warning given on spending

PA Auckland The Prime Minister (Mr Muldoon) hopes banks and other financial institutions will restrain their lending policies; during the next year or so. ' ' ’ Opening the new $6 million Bank of New Zealand building in Queen Street, Auckland, yesterday, Mr Muldoon said restraints were needed if the Government was not to tighten its monetary policy. He warned that the Government was watching the situation closely and would not hesitate to adopt a tighter approach if circumstances made it necessary. Mr Muldoon said he was pleased with the recent, report of a team of experts from the International Monetary Fund who had visited New Zealand. They had given the New Zealand economy the best report he had seen since he had been Minister of Finance. As outsiders, he said, they had perceived that the Government’s policies were working and that there had been considerable restructuring of the economy. Mr Muldoon said that New Zealand’s balance of payments was good by comparison with other countries of its type. “The New Zealand position, in the eyes, of these independent experts, is in good shape,” he said. The medium to long-term outlook was better still, he added.