Irresponsible

The present Budget, in fact, continues an irresponsible fiscal policy which has been evident for some time. When export prices rose rapidly in 1963 Government policy should have been aimed at restraining internal spending and building up overseas exchange reserves to act as a cushion against future export price falls.

Instead, because of Government reluctance to take any really strong measures, such as increasing taxes, a policy of spending all of New Zealand's extra earnings was followed, and an internal boom allowed to develop. Quite predictably it led to the present situation.

Several main features stand out in the Budget and in the economic policy statements contained in it.