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Country did not slow down quickly enough

"Three years ago New Zealand discovered that she was trying to do too much too quickly. She had to slow down but did not do so quickly enough," said Mr E. Holland, Government M.P. for Fendalton, speaking recently on the economy.

If it had not been for the sharp deterioration of the economic situation, the public may have accepted a slower rate of growth. It was necessary that we must correct the economy, though, not too quickly with too drastic action.

The government has decided that the economy needs a "gentle lift" to build up an air of confidence but must not throw away gains that it has made.

"As a result of the conservative policies of the National Party over the past twenty years this country had gone ahead fast and everyone was better off because of this", he said.

Part of the answer to a sounder economy was to ensure increased investment, leaving as much as possible in the hands of the people, to lift the standard of living and retain the welfare state.

Encouragement of investment by the general public, in industry, would considerably step-up production.

"It is the duty of the government to give full reign to private enterprise," he said.

The overall policy of the government was designed to meet "normal circumstances". The government, however, did believe in long-term planning, but there may be unexpected change in the state of the economy.

Over the past twelve months we had accepted a lower standard-of living and it was the policy of the government to ensure that it did not rise too quickly which, he said, contained a certain amount of risk.

This was lessened as the Minister of Finance could make use of the "mini budget".

If circumstances changed more restraint of freedom could be applied to the economy.

"Nevertheless the government realises the need for long-term planning."

Mr Holland said the New Zealand could not achieve satisfactory growth unless we made use of the available tools—manpower and machinery.

But it did not matter to what extent industry could be stimulated, there were still many who could not find employment.

Unemployment was a social problem, an off-shoot of the economic situation. Such people must be trained for jobs they were capable of doing.

Finally, on the subject of tertiary education, Mr Holland said that this branch of education was very costly, particularly in building and that university education should be restricted to those who would make use of it.

"There must be some sort of weeding-out process," he said.