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Salient: Victoria University Students' Paper. Vol. 30, No. 10. 1967.

MP scorns imprudence

MP scorns imprudence

"Failure of the Import Control System relates more to machinations of politicians than to inherent weaknesses in the scheme," said Mr. Bill Rowlings, Labour MP for Buller.

"WE face a situation which is the result of the Government's longterm imprudence," he told a meeting at Victoria. "The situation as regards wool prices is really incidental."

Using a statistician's pen to draw a black picture this Labour Party spokesman on Economic Affairs said "We are faced with the prospect of having to increase export earnings by $l20m over the next five years to maintain the living standards we have been enjoying."

One of the factors he saw contributing to the "very real economic problem at this time" was the "extensive" intraduction of foreign capital into New Zealand.

"This is good if it is aimed at advancing the economy, but a considerable amount of the foreign capital has come in as an effective takeover of existing New Zealand concerns. Nothing is added to the production of the country and dividends that were paid in New Zealand are now paid in overseas currency."

Avocating changes with regard to Hire Purchase Finance Companies he said 'They would be forced to divert some of their funds into more productive channels if they could no longer get more than a reasonable return on their investment."

Other groups of investors came under attack when he blamed high land prices largely on speculators, or as he called them "people regarding land as having a quick return on cash investments."

Commenting on New Zealand's underemployed resources in general, and seasonal farm machinery in particular. Mr. Rowlings said, "We must rethink our attitude to excess capacity and find ways to use it to the full." "Machinery in factories

should be used on a two or three shift basis. This would so raise profits by reducing overheads that wages could be increased to such a level that an eighthour day would once again provide a living wage."

Mr. Rowlings expressed approval of Mr. Muldoon's Savings Bonds which were so "unenthusiastically introduced" in the last budget, but he criticised Government's pricing policy. "Government controlled costs such as electricity, and to a large degree freight rates, have been raised and this is not the way to encourage extra production from industry."

Attacking Government's attitude to the present economic situation he said of a recent statement by the Minister of Finance. Mr. Muldoon, "To speak of governing a country on a day to day oasis is the height of political nonsense."