Developer advises on economics

Press, 7 September 1976, Page 3

Developer advises on economics

PA Wellington:! h The Wellington property! developer and National Party supporter, Mr Robert Jones, ' yesterday added to his words reported on Saturday in which he attacked National Party policy. In the Saturday report Mr Jones called for the removal of “the maze of controls currently inhibiting people’s liberty and productivity.” Mr Jones said in an interview yesterday that his remarks were made in a privately circulated journal and

had not been lor public con-, (sumption. !' He insisted yesterday that : the present Government was! “unquestionably better than] the Opposition.” “I think that Mr Muldoon j is going to be the greatest: Prime Minister we have ever] had.” said Mr Jones. “He is not a Right winger. He is the most Left wing of the last three National Prime Ministers,” he said. His criticism of the Government was hpt inconsistent! with his praise for the Prime; Minister, he claimed.

, Renewing his attack on (Government policy, Mr Jones .said: I “For example, rent controls |don’t work. They never have.Any economist will tell you

his. They have the effect of tausing shortages. “1 am not attacking Muiloon, just his approach—.vhich is to cure all economic Ils by legislation 11 just does rot work. “If it did, they would be i ninging in laws to stop canter.

“The Government has been Jan enormous improvement over its predecessors and we are all benefiting from it," said Mi Jones. But, he went on: “All Governments have had a policy of inhibition and control. “To reduce inflation, they are trying to cut activity, but is it worth the pain?” Comparing the economy with the performance of an athlete, he said it was ludicrous to get rid of the pain by running slow all the time. Carrying his analogy to ultimate lengths, he said: “You could solve the problem of inflation by -dropping a bomb on New Zealand.” He insisted that the Government should encourage activity in its fight against inflation. “They argue that as soon as ybu have increased activity, you have increased imports, and they say we canInot afford this. “But it is silly to reduce activity, as by increasing productivity, our exports increase as well,” he said. Mr Jones said that he had not yet received any comment from the National Party or Mr Muldoon on his earlier comments.