‘Abdication of leadership’ shocks Mr Rowling

Press, 17 January 1979, Page 3

‘Abdication of leadership’ shocks Mr Rowling

Mr Rowling last evening described Mr Muldoon’s speech as “total abdication of the leadership of the country.” “Everyone with the slightest concern for our economic future will be shocked at this document,” Mr Rowling said. “When I spoke on Monday I called on the Prime Minister to show political courage and place the reality of our critical economic situation clearly before New Zealanders.

“He has shown he has no understanding of what that means. There is no analysis of the true state of the New Zealand economy. More im-

portant, there is not one single policy statement or direction for any sector of the economy.” Mr Rowling said it was the speech of a tired, confused man who had run through all his options and now had no clue where to go. Mr Muldoon’s speech gave rise to several aspects of concern.

“It is clear from the vague comments that Mr Muldoon is definitely looking at a devaluation. Meanwhile, he remains paralysed against any action to control the coming import boom. “There is still a refusal to face reality and admit that

the internal deficit is too high and out of control, as can be confirmed by virtually all independent economic authorities,” Mr Rowling said. “Worse, Mr Muldoon is talking about the deficit’s remaining at its present impossible level on into the next year. The implications of that for inflation and for interest rates are very serious,” he said.

Mr Muldoon apparently was so lacking in confidence about his ability to check interna] inflation that he was not even able to make a firm prediction on the likely inflation rate for this year. “Certainly there is no more

talk of single figure inflation,” Mr Rowling said. A good deal of Mr Muldoon’s speech was devoted to replying to areas in which he was under attack from within his own party. “The bluster about tough action against trade unions seems to indicate that any return to progressive and workable industrial law will be shelved for political considerations,” Mr Rowling isaid.

He urged others with an interest in New Zealand’s economic survival to speak out. “It is clear the so-called Government has turned its face to the wall,” he said.