Short-term economic problems—while urgent and important in
themselves—are symptomatic of some underlying weaknesses within
the economy. Perhaps the most startling evidence of this is that in the
decade ending in 1974 the rate of increase in our national income per
head was less than that in every other developed country. The
Government is determined not to let the need to overcome short-term
difficulties overshadow the search for solutions to the more basic
problems.

The permanence and extent of the problem suggests that fundamental
changes will be required over the next few years in most areas of the
economy. Already the Government has instituted measures such as
the energy pricing policy, the promotion of industry development
plans and the stimulation of export industries to encourage the efficient
use of resources. But it is clear that further measures will be needed.

Ministers therefore attach special importance to the proper co-
ordination of priorities in all spheres of public and private planning;
they recognise that the social and regional aspects of national
development require considerable attention so that planning for
economic growth and stability can be undertaken on a much broader
basis than in the past.

The establishment of the New Zealand Planning Council should
provide a catalyst and a focus for co-operative endeavours by
Government, local and regional authorities and private agencies and
individuals to plan for improvements in New Zealand's economic,
social, and cultural life, with due regard for the environment. The
Government will give priority this session to the introduction of a
Bill to define the status and functions of the Planning Council.

A further major economic measure for consideration this Session is
the Public Finance Bill which will contain some important new
measures designed to enhance parliamentary control over the
expenditure of public money.

The severe inflation experienced over the last few years, coupled with
historical cost accounting, may have distorted investment patterns and
discouraged productive investment. Ministers are studying submissions
made on the report of the Committee of Inquiry into Inflation
Accounting.

New Zealand's future prosperity will continue to depend on the vigour
of its primary industries and their ability to compete for export markets.
The Government's commitment to increasing agricultural production
is evident from the successful establishment of the Livestock Incentive
Scheme to accelerate increase in livestock numbers. The Rural Bank
will continue to be provided with adequate funds by the Government
to meet the reasonable needs of the agricultural sector, particularly
for farm development.

Among other measures aimed at increasing production and efficiency
the Government will introduce a Noxious Plant Bill to improve noxious
weeds administration, a Potato Growing Industry Bill to bring the
industry under a reconstituted Potato Board, and a Wool Industry
Bill to merge the Wool Board and the Wool Marketing Corporation.

While continuing to encourage the export industries based on forest
resources and to maintain a substantial afforestation programme, the
Government will examine the future contributions to the economy of