Big projects earn foreign exchange

Press, 21 April 1984, Page 8

Big projects earn foreign exchange

PA Wellington Foreign exchange earnings from the “think big” projects were leading New Zealand into sustained economic growth and decreasing unemployment, said the Minister of Energy, Mr Birch, yesterday. Mr Birch told the Young Nationals conference in Queenstown that the oil shocks of the 1970 s caused a considerable deterioration in New Zealand’s balance of payments, low economic growth, and an increase in unemployment. New Zealand was now entering a period when con-

siderable foreign exchange would be earned by the big projects, the rate of economic growth would increase, and the level of unemployment would drop. “The Planning Council has forecast that the growth in gross domestic product will be about 5 per cent real a year between 1985 and 1988,” he said. “During this time 108,000 new jobs will be created and the growth in the workforce will be 87,000. This will result in a decrease in unemployment of 21,000. “The decrease in unemployment of 6099 at the end

of February and 9246 at the end of March this year is evidence that the economy is picking up and the growth predictions are being met.” Mr Birch said the foreign exchange benefits of the Maui and Kapuni projects would rise to $lOOO million in 1987 and $ll5O million n 1992. The projects would increase self-sufficiency in liquid fuels from 10 per cent in 1979 to 60 per cent by 1987. Expansion of tourism was seen as a key element in earning foreign exchange and providing jobs.