N.Z. 'in a gross loss situation'

Press, 4 May 1984, Page 4

N.Z. 'in a gross loss situation'

PA Hamilton New Zealand is in “a gross loss situation” and may have only two years to get its economy working properly before the creditors move in, says the chairman of the Industries Development Commission, Mr Ted Tarrant. If New Zealand did not get its economy moving in the right direction, creditors

would tell New Zealanders what to do, he said. “That time is getting rather close. 11l give it two years. “I don’t think there is any escape ... a company can’t forever spend more than it earns.” Mr Tarrant said that if the country was a company or a household budget something would have to go. A lower standard of liv-

ing was one of the remedial treatments for the economic problems, he told the annuall conference of Waikato Federated Farmers. Tax incentives and S.M.P.s could not be sustained for too much longer by people with no production base, be said. New Zealand had borrowed $6OOO million in 10 years, but could not borrow overseas’ for ever.

After studying half of New Zealand’s manufacturing sector, Mr Tarrant said that all industries seemed to need improvements in distribution and transport; there were too many elements in the chain. Citing Air New Zealand and the Railways Corporation as examples, Mr Tarrant said there was the suspicion that much of the country was overmanned.