Jobless rise forecast

Press, 31 January 1983, Page 5

Jobless rise forecast

Parliamentary reporter Economic issues will dominate the 1983 political landscape, predicts the member of Parliament for Lyttelton, Mrs Ann Hercus, an aspirant for the Labour deputy leader's post this week. It now seemed certain that unemployment figures would continue to rise, she said. The 1984 Budget deficit was likely to top $3OOO

million if current trends continued, and inflation would move up in late 1983, even if it dropped temporarily during the freeze. Public expenditure levels would pass $12,000 million in 1983-84, unless there was a devaluation. New Zealand’s international “triple A” credit rating was under review and might be revised, Mrs

Hercus said. Overseas borrowing would be inhibited, and the Prime Minister, Mr Muldoon, would continue to blame the world for New Zealand's problems. It was also possible that, there would be an increasing level of cynicism towards politics and politicians as people became more and more trapped in their economic circumstances.