Labour attacks hold on interest

Press, 26 November 1981, Page 6

Labour attacks hold on interest

The leader of the Labour Party (Mr Rowling), has attacked the Government’s regulations introduced yesterday, restricting interest rates.

He said yesterday that one of Mr Muldoon’s first moves in his six years as Minister of Finance had been to decontrol interest rates. “We have all. taken the consequences in the meantime,” he told about 800 people at Blenheim. But now, after six years,, and days before an election, Mr Muldoon was reinstating regulations.

Repeating his assertion that the Government had to lower its own interest rates, Mr Rowling said, “He can regulate until he is blue in the face but unless he and the Government lead in critical areas like this, the people will continue to do the paying.” Mr Rowling said .that every day that went by Mr Muldoon did something to add to his own self-destruc-tion.

“Last week he was on about some ‘think big’ reports he said did not exist. Then when they did exist he did not want to know what was in them. At least, he did not want anyone else to know. “This week we have got on to the interest rate situation. “He (Mr Muldoon) was the Minister of Finance in 1976 who decided he would take controls off interest rates in this country. “There is not a New Zealander who has not suffered as a consequence of that in the intervening years.” Mr Rowling said that a few days ago he had said that, on the best of information he could get, interest rates were about to increase again, and two of the finance houses had already taken action.

“That was initially denied., The denial has since been modified. “I said in Auckland this morning (Wednesday) that in fact the commercial banks would follow the finance

houses. At lunch-time, the Prime Minister, who all through the election campaign has been telling the people of New Zealand that the finance houses and the banking structure were listening to him and responding to his exhortations, announced he is reimposing regulations on interest rates.”'

Mr Rowling's speech contained statements on Safe Air and the implications of reintroducing the Lyttelton ferry service.

Mr Rowling promised that under a Labour government Safe Air would keep its own identity and its own management structure.

On the ferry question, Mr Rowling denied assertions by the chairman of the Marlborough Harbour Board, Mr W. Horrey. Although the Lyttelton ferry would be revived, said Mr Rowling, it would not be at the expense of the Picton ferries.