’Devaluation endangered’

Press, 9 November 1984, Page 6

’Devaluation endangered’

PA Wellington The president of the Manufacturers’ Federation, Mr Earl Richardson, said the Government saw the reduction of its Budget deficit as its priority, but at the expense of production and employment. “With the Budget’s increase in Government charges I believe the Government has endangered its opportunity to make the devaluation stick," he said.

“Manufacturers now will have to contend not only with imported cost increases but a savage rise in electricity and coal charges and increasing transport costs.”

The Opposition spokesman on Social Welfare, Mr V. S. Young, said that an-

other. 300,000 income-tested beneficiaries would be created as a result of Labour’s tax package. Commenting on the family care package, Mr Young said the single income earner and those married without children, saving for a home or to travel overseas, had been ignored. The chairman of the Bankers’ Association, Mr G. P. Thompson, said that the banks were encouraged by the emphasis which had been placed on getting the fiscal deficit under control.

“This will reduce the inequitable burden which has been borne by monetary policy in the past. Although the reduction in the deficit is fairly small in this financial year, the measures in

place suggest there will be considerable reduction next year,” said Mr Thompson. He said the Government would find widespread support for its undertaking to assist the disadvantaged. However, concern must be felt for some sectors of agriculture already suffering from the effect of restocking after the drought and over-commitment resulting from low prices for most of the last decade. The chairman of the Milk Board, Mr Brian Kimpton, reacted positively to the announcement that the milk subsidy would be ended early in 1985. “The milk industry accepts the reality of the need for firm fiscal pruning from Government. Since the introduction of the subsidy

during World War 11, the town milk industry has received significant finance input from the Government,” said Mr Kimpton. “Now that the cost-plus days are clearly over, it is imperative that the Milk Board becomes self-con-trolled and self-regulated.” Kindergaten teachers were pleased with the Government’s decision to improve staffing, said Ms Jeanie McCafferty, president of the Free Kindergartens’ Association.

There had been no general improvement in kindergarten staffing since the 19405. In most kindergartens, two teachers still worked with 80 children and families in one day, divided into two sessions of 40 children.