Govt borrowing 'double that of Labour’

Press, 20 April 1979, Page 4

Govt borrowing 'double that of Labour’

PA Wellington The National Government had borrowed $1.78 for every dollar of gross overseas borrowing by the last Labour government, said the DeputyLeader of the Opposition (Mr Tizard) yesterday. In net terms, the ratio was $1.22 borrowed by National to $1 borrowed by Labour. Gross direct official overseas borrowing by the present Government since January 1, 1976, including equipment credits totalled $2426. IM. compared with Labour’s total of $1295.2M for 1973-75.

National had arranged almost twice as much direct official borrowing as Labour had.

Official overseas borrowing from January 1, 1976, to February, 1979, recorded by tne Reserve Bank, amounted to $2248.3M gross or $1148.2M net.

The corresponding figures under Labour, from January 1, 1973, to December 31,

11975. had been $1260 814 (gross and $944.8M net. j When increases due to the exchange rate were included, the overseas public debt had increased by $938.5M under two years of National. com* pared with 5899.2 M for three years under Labour. “When the latest statistics become available, it is likely that this National Govern* ment will have doubled New! Zealands overseas public debt: doubled in three years the figure which it took New 1 Zealand 115 years to reach, * said Mr Tizard.

National had always claim* ed to have inherited the big overseas debt from Labour. The greatest single drain on overseas funds was energy purchases but the Govern* ment had done nothing sine® 1975 to rectify that. Labour had regarded bor« rowing as a temporary mea* sure to overcome a crisii when New Zealand’s over* seas earnings had fallen.