Income decline predicted

Press, 30 January 1986, Page 2

Income decline predicted

Canterbury’s income would fall this year because, like other regions, it had been living beyond its means, according to an Associate Minister of Finance, Mr Caygill. He was addressing a meeting of local body members and staff organised by the Canterbury United Council yesterday on the Government’s economic policies and their impact on Canterbury.

“The day of reckoning has arrived when we must return to living more within out means,” said Mr Caygill.

“We now have to set about improving our income which cannot be done through Government assistance.

Canterbury’s export earnings from farming could fall about 20 per cent this year because the country’s terms of trade continued to decline, said Mr Caygill. “This is mainly due

to a decline in the world’s demand for the kinds of agricultural products we produce. The Government is not expecting a collapse of rural land prices and security this year.

“We face a serious situation but not a collapse of land prices and security. Many financial institutions are leaving their investments in properties that are being farmed well and will produce an economic return in the long run.”

The Mayor, Sir Hamish Hay, said that local authorities would have difficulty meeting their wages bill this year. Local authority staff wages were linked to State wages which had an increase of up to 30 per cent during the last wage round, he said.

In reply Mr Caygill said that the local authorities had chosen to link their staff wages with State wages.

“As employers some of you should be reviewing that choice,” he said.