The Press FRIDAY, JUNE 10, 1966. The Economy

Press, Volume CVI, Issue 31082, 10 June 1966, Page 10

The Press FRIDAY, JUNE 10, 1966. The Economy

The annual survey of the economy in the Economic Review, released for publication today, is a sombre document. The deterioration in the balance of payments “ which began in 1964 has become more “ marked in the past 12 months and is the most “ serious economic problem facing the country at the “ present time ”, it says; “ proper balance in the •* internal economy and in the external accounts will “ not be achieved without firm economic policies to “ diminish excess spending and to control the supply “ of credit ”. The review is usually a pointer to the Budget which closely follows it; this year’s review holds out no hope of major election-year concessions to taxpayers.

The retention of building and import controls is mentioned in the review as evidence that the Government is “ doing something ” about the economic situation. Still more convincing would have been fiscal and budgetary restraints rendering these Inefficient and costly controls superfluous. Sound planning of the economy can achieve this end, and the Government’s acceptance of the need for planning is welcome. With some justification, it could be claimed that this need was not recognised until the country was threatened with an economic crisis; but if the threatened crisis initiates sound planning, more balanced development, and fewer fluctuations from one year to the next, its long-term effects can only be salutary.