Challenge and prayer in P.M.’s address

Press, 18 October 1976, Page 1

Challenge and prayer in P.M.’s address

From

CEDRIC MENTIPLAY

Wellington A challenge and a prayer were contained in the first major address given by the Prime Minister (Mr Muldoon) since his return last Thursday from international financial discussions.

The challenge was more an appeal for economic nationalism in all walks of life. The prayer had elements of warning to those who seek variations in the Government’s declared wages policy. Strongest of all, however, was the analogy Mr Muldoon drew between the economic policy under Labour which had reduced Britain to its present financial straits, and that followed by the New Zealand Labour Government before the 1975 General Election.

Mr Muldoon spoke on Saturday evening at the opening of the Bay of Plenty Industries Fair at Tauranga.

“Fewer than two days, ago, I returned from international conferences concerned with finance and economic matters, where I rebriefed myself at first

hand on events in these fields elsewhere,” Mr Muldoon said. “The position of the United Kingdom probably interests us most because of ties of kith and km, of the Commonwealth bond, and mutual trade. “1 take no joy from the economic straits of the United Kingdom,” he said, “yet things were looming up the same way here, except that with the change in Government in November last we took immediate steps to- implement the very policy which the British Government is now compelled to take as conditions of international finance call for rescue operations.

“We have substantially reduced public expenditure with a view to diversion of resources to the private sector, we are concentrating on investment for export, and we have a wages policy,” Mr Muldoon said. “Those who oppose this policy need only look to the United Kingdom to see the results of failure of a Labour Government to act earlier. Those who would try to wreck our pay policy should look to what happened in the United Kingdom until a crisis situation brought the trade, unions face to face with reality.

“Likewise, we here cannot afford the continuing drain of industrial stoppages of the type which played so big a part in reducing the United Kingdom to its present desperate position. I pray that those to whom these remarks are addressed pay heed.

“I see also that during my absence, the president of the Federation of Labour (Sir Thomas Skinner) has been giving warning of a likely exodus of skilled labour. Anyone who considers his views in this direction as a tip to try their luck elsewhere should pause to consider that Australia has almost 300,000 unemployed, the United Kingdom 1,500,000, and many other countries comparably high figures. “I say to those skilled men who may be frightened into leaving our shores that my Government is pledged to stabilise the economy, and that while this cannot be done overnight — and I have never pretended that it could be other than an operation lasting perhaps the full term of this National Government — it is definitely an attainable objective, given relative industrial peace and the individual appreciation of the duty of every man and

woman — wage-earner, professional person, and employer alike — to make the necessary effort, that is to make a reality of economic patriotism.”

In an earlier interview since his return, Mr Muldoon said he believed that New Zealand could still trade her way out of trouble. He admitted that imports at present were costing too much, and that 1977 projections were “too high for comfort,” but said definitely that there would be no “mini-budget” in the next few months to correct the position. Mr Muldoon maintains the view that corrective measures already made will ultimately adjust the position to the advantage of the New Zealand economy — but he has not denied that any movement in that direction is taking longer than expected. The import problem has proved more difficult than he predicted, this stemming from the fact that many of the imports were related to items partly manufactured or processed in New Zealand for the export trade. Mr Muldoon now says that projections for imports in the next financial year (from April 1, 1977), show a level which he regards as acceptable.