Big-project warning

Press, 31 March 1981, Page 7

Big-project warning

™ Wellington, No-one in his right senses could believe that a few big projects would put the New Zealand economy right, the chairman of the Planning Council, Sir Frank Holmes, told agriculturists in Wellington. s

Speaking at a press seminar run by Agrow, an information organ of the producer boards. Sir Frank said the big energy projects would help to reduce New Zealand's dependence on overseas liquid fuels, but the projects Would produce few benefits in the early part of this

He said the essential strategy was balanced expansion of competitive industries and services over a wide front.

The biggest contribution had to come from agriculture, but farming confidence was important. Many farmers feared that the’capital they needed from expansion would be drained off into

energy and industrial projects.

“A drop in agricultural output can wipe out the benefits of growth in other areas,” Sir Frank said. “You will know that rapidly rising costs are threatening the foundations of farming's important contribution to the nation s future expansion.”

Sir Frank said New Zealand should have the resources and market opportunities to enable an average of 2 per cent a year growth in the gross domestic product in the early 1980 s and 4per cent a year on average at the end of the decade.

For that growth to occur, New Zealanders must see pastoral farming as an important and growing factor in the economy, and not as a remnant of the past that could be left to die off' gradually while the real effort went into energy projects. forestry, and electronic, technologies.