‘Secret’ group talks set up by Mr Kirk

Press, Volume CXV, Issue 33912, 4 August 1975, Page 2

‘Secret’ group talks set up by Mr Kirk

(From CEDRIC MENTIPLAY) It seems that the modern, and rather puerile term “thinktank,” and the vision of a group of highly placed persons sitting round a table in a coffee-shop off Featherston Street in Wellington have combined to give many people a completely misleading idea of events which took place last year.

It appears that the then Prime Minister (the late Mr N. E. Kirk), deeply concerned about the economic, and monetary problems in a developing world situation, sought advice outside tlie usual “official” channels (the Treasury, the Reserve Bank, the other advisers available, and his own Minister of Finance).

Either personally, or through Mr J. G. O’Brien, M.P. for Island Bay, he was able to contact, and to get the views of such specialists in their fields as Sir Henry Kelliher, Dr W. B. Sutch, Mr T. E. Skinner and Mr J. Lewin. These four have been named, and all have admitted consultation of some kind — but there might have been others. The main thought in Mr Kirk’s mind in those days — late 1973 to early 1974 — could well have been to brief himself thoroughly, firstly in international monetaryeconomic trends, and secondly in the elements of internal economics.

Mr Kirk was largely a selftaught man. He was well aware of his limitations in the economic field, and at times showed some embarrassment when confronted with problems he found difficult to grasp. His pattern at such times was often to appear to turn away, while seeking information elsewhere. One subject which was very much on his mind during his six-nation trip of December 1973-January 1974 was whether New Zealand could be insulated from world trends, as it had been during World War II years. War measures

This was accomplished 35 years ago by means of a series of controls on prices, wages, imports and other aspects of economic life. It was highly successful in those years of crisis, but entailed a difficult post-war adjustment period. The question to which Mr Kirk sought the answer was: Could it be done again, at a time of monetary and economic crisis — perhaps in 1974-75? In today’s tense political situation, certain points tend to be emphasised in any discussion involving an

internal stabilisation and exchange. If, for "nationalisation,” one substitutes “control,” this is similar to what happened in the war years. But in 1975 any group talking along these lines could well be branded “socialist” or even “communist.” On the evidence so far gathered, however, there was no such thing as a “thinktank” of authorities, sitting round a coffee-table and enunciating theories for the economic “take-over” of New Zealand.

There was a group, of indeterminate size, the members of which were possibly unknown to each other, but who individually offered opinions. From these opinions, and from the “hard evidence.” produced by the Treasury, and by other official advisors, Mr Kirk might have evolved a plan, which he would have taken to the Cabinet. ' Unfortunately his ill-health and untimely death prevented such a result. It is worth remembering, however, that when Mr W. E. Rowling took over as Prime Minister, he and his Minister of Finance (Mr Tizard) made their economic “state of the nation” disclosures to a “leadergroup” of .manufacturers, bankers businessmen and economists.

They sought views and opinions, so this, and subsequent “leader-group” discussions could have been branded a "think-tank.” They never were. The inelegant, cacophonous phrase was not then popular. Mr Kirk had died on August 31, less than two months previously, and his shadow still loomed large over the nation. One question remains: If Mr Kirk was so deeply involved in plans adding up to national stabilisation, why was not Mr Rowling, as Minister of Finance, fully briefed? This could merely have

been a matter of presentation. Mr Rowling could be depended upon to bring together all the “official” information, and to present the “official” view. As Prime Minister under what passes for a New Zealand constitution, Mr Kirk had ultimate control of all portfolios. It must be remembered that the roles of Prime Minister and Minister of Finance have been closely linked. Sir Sidney Holland held the Finance portfolio throughout much of his term of office, designating the late Mr C. M. Bowden as associate Minister. This abrasive situation did not entirely end when the late Mr J. T. Watts became Minister of Finance in 1954. What happened in 1974 was closely related to the state of Mr Kirk’s health. Many of his briefings on economic and other matters might have been carried out by inviting those concerned to the Prime Minister’s rooms (actually the old War Cabinet rooms) at the top of Parliament Buildings. Cross-section Other Prime Ministers used to do this. Callers on Sir Sidney Holland, Sir Walter Nash, Sir Keith Holyoake and Sir John Marshall would have represented a broad cross-section of New Zealand life. But there were drawbacks. Prime Ministerial visitors are subject to “sighting” by members of the Press Gallery and also by members of the Opposition party. A certain desire for secrecy could be understood. Some speculative writers have been known to get uncomfortably close to the mark on political subjects, merely by observation. Mr Kirk chose to receive some of his information using Mr J. G. O’Brien (Labour, Island Bay) as his courier. As Mr Kirk said of another matter, it is a tangled skein. But the greatest danger in this election year is that it will be swept into the whirlpool of party politics. This, and the snap visual presentations we are receiving, could lead to some unjustified conclusions.