Imports push payments deficit to $179M

Press, 4 June 1982, Page 1

Imports push payments deficit to $179M

PA Wellington New Zealand’s balance-of-payments deficit in this year’s March quarter was $179 million, compared with a surplus of sl3 million in the corresponding quarter last year.

The latest quarterly, deficit was the fourth in' a row. according to the Statistics Department yesterday. The figures were labelled by the Leader of the Opposition (Mr Rowling) a further damning indictment of the Government's economic abilities.

"It is the worst March quarter performance since 1977 and again highlights the complete inability of the Government to come to grips with any single problem facing the’economy," he said. “Exports returns have increased only 13 per cent since last March while imports costs have risen 35 per cent."

The Social Credit leader (Mr Beetham) said the figures showed New Zealand was "fast approaching a

position of permanent deficit, in its trade. "The illusion of a boom created for election year purposes has proved to have no substance." he said. "The gap between the value of exports and imports is narrowing rapidly and leads to the inescapable con-

elusion that all the money which the Government has poured into export incentives has been unwisely spent.” Deficits for the" June. September. and December. 1981. quarters, were S2SOM, 5534 M. and 5408 M respectively. On a f.o.b. basis New Zealand exported SI7OBM worth of goods, up 13 per cent on the March quarter of last

year, but imports jumped 35 per cent to 51638 M. The Statistics Department said the balance of mer-

chandise trade in the latest March quarter was a surplus of S7OM but the surplus was $294M in the comparable period of 1981. The merchandise surplus of S7OM was the smallest for the March quarter since 1977. Earnings from services supplied to other countries.

and from investment incomes. was ahead 40 per cent to SS4OM. but payments made for services to other countries, and investment pavouts. went up 21 per cent to SB23M. . ' ' The balance on invisibles in the March quarter was a deficit of S2B3M, compared with a deficit of $295M for the corresponding period last

year. Mr Rowling said there were clear reasons for the "critical situation.” They included the “totajly irresponsible" pre-election boom; the unprecedented surge in the money supply which the Minister of Finance (Mr Muldoon) now admitted had “got the better of him"; the first round of the ‘think big’ bills; and the inflation rates, "far above our key trading partners which continue to undercut our export performance." Other factors were "the shambles in the investment market, which sees unacceptably low rates of investment channelled at very expensive rates into inappropriate areas," said Mr Rowling.