Credits

Having criticised the Budget for its overall weakness a few good points may be noted.

Top of the list is the increase in bursaries and hostel subsidies for university students. Masters bursaries are up £50 to £150, boarding bursaries up £45 to £125 and cash allowance in the third year of a fees and allowance bursary up £20 to £80. Mr. Lake is apparently becoming the students' friend.

Secondly, Mr. Lake should be congratulated for abolishing the "gift" provision for no-remittance import licences. This was one of the biggest avenues for dishonesty in the country. Unfortunately, he slightly soured the high moral note by extending the eligibility date for ownership of overseas funds. The big boys will still get their cars, apparently.

Thirdly, the taxation incentives granted to farming, fishing, mining, forestry and research are welcome and should help stimulate development. So will the Development Finance Corporation being set up, and the Export Guarantee Office. These are all positive steps.

However, despite some good points, the Budget as a whole is an unsatisfactory and inadequate one. Ever since 1958 and the "black budget," New Zealand Ministers of Finance have lacked the courage to increase taxes when such an increase became necessary, Mr. Lake's 1965 Budget falls clearly into this category.

This time, though, Mr. Lake might just get away with it. Falling export income will eventually cut internal demand, and overseas funds can be shored up by borrowing from the IMF. This won't do New Zealand's long-term development any good, but it will mean that the Government will win the next election.—Special Correspondent.