Quarter deficit estimate $382M

Press, 9 March 1982, Page 2

Quarter deficit estimate $382M

PA Wellington Figures released by Jhe Department of Statistics yesterday show a deficit of $382 million in New Zealand’s balance of payments on current account for last year’s Octo-ber-December quarter. This figure, a provisional estimate only, compares with a deficit of S27IM for the corresponding quarter in 1980 and follows deficits for the'l9Bl September and June quarters of $532M and $247M and a surplus in the March, 1981, quarter of SI3M.

Goods worth $1616M (valued f.0.b.) were exported in the latest December quarter, up 16 per cent on the December, 1980, figure. Imports (valued f.o.b. in the exporting countries) rose 26 per cent in the December quarter ,to $1683M, leaving a deficit in the balance on merchandise trade of S67M. In December, 1980, there was a surplus of $59M..

New Zealand’s earnings from services supplied to other countries in the latest quarter were $442M, up, 39 per cent from the corresponding 1980 figure. Services supplied to New Zealand during the December quarter were up 9 per cent at $572M. This left a balance on services in December of SI3OM, down from the December, 1980, figure of S2IOM.

The Opposition finance spokesman. Mr R. J. Tizard, said the rapidly expanding balance-of-payments deficit was now well in excess of the Labour administration’s 1975 figure. The Government Statistician’s figures showed that the deficit for the 1981 calendar year was estimated at SII4BM, well above the Labour, figure of SIOOOM, which the Prime Minister was so scathing about, Mr Tizard said. A total S9I4M of the deficit had been “chalked up” in the last six months, he said. The Government had allowed the balance-of-payments situation to “explode for its own election year benefit, and now expects wage and salary earners and other low-in-come earners to bear the cost of the rescue operation.”

“As in the past, these will be designed to help the wealthy and hurt the needy.”