Govt M.P. pessimistic

Press, 13 October 1983, Page 12

Govt M.P. pessimistic

PA Hamilton The Government’s moves to counter inflation have came under criticism by one of its own members of Parliament. Mr S. D. Upton (Waikato), speaking to a Waikato Federated Farmers’ dairy section meeting in Hamilton, expressed doubts that the Government’s moves would keep the inflation rate down. Mr Upton said the economic outlook was very uncertain. “It has to be when the Government runs the country through regulation and price freeze,” Mr Upton

said. He expected to see inflation get out of control again, in spite of the Government’s efforts to reduce the rate. “I think there will be strong inflationary pressures,” he said. These could be attributed to the Government's need to finance its deficit. However, he predicted the Government would try to keep very close control of the economy after the end of the wage-price freeze, next year. The Government was “not going to take the lid off,” he told the meeting. There was talk of a 5 per

cent wage round and Mr Upton said there would have to be “some form of price surveillance.” But he did not know what form it would take. Such decisions were not made by caucus members, he said. Mr Upton said that when the Dairy Board’s 1 per cent credit was removed, “most of us found out about it in the papers.” “People assume caucus is where decisions are made — they are not,” he said. Mr Upton said he had heard about the price freeze on television after giving a speech about freeing up the economy.