Rural areas in severe state of depression

Press, 13 August 1986, Page 33

Rural areas in severe state of depression

Wellington reporter . The South Island’s rural economy is undergoing a severe depression, according to the Leader of the Opposition, Mr Bolger. He told the Oamaru Rotary Club that this depression had hit the regions where much of the country's real productive wealth was produced or manufactured. The urban economy had been affected by high interest rates and increased costs, but until now had maintained its momentum largely as a result of the cash flows generated by the extremely active money and stock markets, with their

corporate raiders and takeover specialists. Unfortunately, all the activity in the finance and sharebroking sector did not produce the tradeable goods which New Zealand had to sell overseas to maintain its standard of living, Mr Bolger said. . Centres . like Oamaru knew the full implications of the downturn in agriculture and the flow-on impact on small businesses. Small businesses were essential for a healthy commercial community, yet they had been ignored by Government policy, he said.