‘Think big’ full of holes — Labour

Press, 17 November 1981, Page 6

‘Think big’ full of holes — Labour

National’s “think big" strategy “is so. full of holes you could take..it home and strain the peas through it,” the Leader of the Opposition (Mr Rowling) told an election meeting in the Christchurch, Town Hall last evening.

Mr Rowling received a tumultuous welcome, with foot-stamping, cheering, and a standing ovation. With an estimated audience of 2400, it was the biggest campaign meeting held by any of the three leaders so far. He launched a concentrated attack on the Government’s record and its growth strategy policy in his hourlong speech, as well as outlining Labour’s five-year programme for economic improvement. Six years ago National had inherited an economy which was a “going concern,” said Mr Rowling. Since then it had been responsible for the wastage of 250,000 lives — 100,000 “on the scrap heap of unemployment,” and 150,000 who had gone overseas.

The third Labour Government had managed a growth rate of 4.3 per cent in its three years of office. But for the last five years New Zealand had zero growth and in the last year the growth rate had reversed:

The present Government’s growth strategy would use New Zealand’s resources, but would create only a “handful” of jobs at a time when 300,000 jobs were needed. The Prime Minister (Mr Muldoon) was trying to .“grab every dollar” and put it in a handful of high-risk industries.”

Mr Rowling attacked the National Party for failing to produce a manifesto for this year’s General Election. “It is just asking for a blank cheque, so it can hang round for 10 years and something might happen,” he said.

He had watched Mr Muldoon’s opening campaign address and had heard only about jobs “for children yet unborn.”

“How can you talk about jobs for children yet unborn when the parents of the children yet unborn are in the dole queue right now? Unless we do something about it, either those children

will not be born at all or they will be born Australians,” he said. . ■'* •

For a fraction of the cost of the “think big” projects, Labour would get New Zealand going again, he said. Even Federated Farmers agreed that' if the same amount of money went into agriculture and- horticulture there would be 15 times the amount of export earnings and 50 times the number of jobs than at present. The elements -of Labour’s five-year plan were integrated, well researched, and carefully costed. The -plan included a set of priorities which would be brought in step by step. Small businesses provided the bulk of jobs for the best value. Under National they had been starved, yet they paid more tax than big businesses. It was necessary to restore confidence so these businesses would develop. The Development Finance Corporation, the Small Business Agency, freight concessions, a fairer tax structure and, where necessary, protection, would help small businesses, particularly those in the South Island. Regional development had been “tremendously successful” under the last Labour Government and would be used again to “build the region’s economy with the strengths and resources that lie within the region itself.”

Labour was determined that the South Island would benefit from its energy resources. Electricity prices had increased at double the rate of oil prices. Labour would introduce a 25 per cent across the board reduction in power charges for the South Island.

Labour would also bring in a suitable Lyttelton-to-Well-ington ferry service, which would complement the Picton ferry service. On taxation, Labour would put more dollars in people’s pockets. This would increase confidence in business. But confrontation had to be taken out of the wage round, he said.

Labour’s’ income tax proposal, which would provide ?860 million of relief in the income tax area, was

“dramatically simple.” The first $6O would be tax free, $72 for workers with a dependent spouse, $l3O for families with one dependent child and $lO for each other dependent child. Rebates on overtime and • shift work would be revised.

Money to finance the proposal would come from cracking down on tax evaders, a surcharge on foreign exchange, and a target of 3 per cent growth in the economy.

Mr Rowling denied Government assertions that the proposed foreign exchange surcharge was against’ the G.A.T.T. agreement. If it was, import licences and export incentives would also be against G.A.T.T.’ “Even if it was I would put the interests of our people ahead of some rich men’s club on the other side of the world,” he said. Mr Rowling said it was essential to have policies that tackled inflation “headon.” Labour would control interest rates, put Government charges on a “breakeven” basis, and would impose a tough anti-monopoly law.

Mr Rowling also criticised the Government’s record in housing. It had “presided over the strangulation of the Housing Corporation, seen open slather on the housing market, and had seen families driven into a corner where they pay a third of .their income in rent.”

The Post Office had just changed its rules on second mortgage finance. Where 10 people had qualified for a loan, now only one person would, he said.

Labour would ensure that mortgages were available at reasonable rates, housing prices were reasonable, that speculators were kept out of the housing area and that people on lower incomes would get better treatment from the Housing Corporation.

Mr Rowling said that this month’s General Election was the most momentous New Zealand had faced.