Advice to Govt ‘misplaced’

Press, 9 April 1979, Page 4

Advice to Govt ‘misplaced’

PA Wellington!’ The Public Service Associa-j t lion has advised the Govern-it ment against “any wholesale; move to free the market” in t its attempts to restructure:\ the economy. "A blind faith in the plan-h ning power and perceptive-; t ness of unregulated market A forces — which underlies T the recommendations of the ( Planning Council and other; I organisations — is mi.s-!< placed,” says the P.S.A.’s president (Mr D. 11. A /Thorpe) in his organisation'sA pre-Budget submissions. s “It is misplaced because! 1 the criterion of efficiency un-i der this mechanism, the dol-A lar return on investments, is A inadequate under our pre-! I sent circumstances,” he says.: Due credit must be given ii to the values of maintaining!? full employment, of saving |c foreign exchange, of preserv-l ing a stable regional balance r of economic activity, of en- \ vironmental protection and. f above all, of- creating a so- [ ciety in which all people are f given the opportunity to de-is

velop their potential and live rewarding lives, Mr Thorpe says. The P.S.A. opposes further tinkering with the tax and, welfare systems. “We are facing a sustained round of massive price rises that do not have ant' apparent policy link.” says Mr! Thorpe, “it is clear that the' Government, is reverting to the tried and failed policy ■if economic, retrenchment.” He says the Government is concentrating its. restrictions on public services in general and on the health and welfare systems in particular. Wage and salary earners are bearing the brunt of the Government's restrictive policies. says Mr Thorpe. The recent electricity price, rise should be explained and a public inquiry made into electricity pricing. The P.S.A. hopes that any, restructuring of the economy! will be fully co-ordinated,l and it. looks forward to the presentation of a Budget “of purpose and vision” in 1979; says Mr Thorpe.