N.Z. left ‘in a state of drift’

Press, 13 January 1982, Page 1

N.Z. left ‘in a state of drift’

PA Wellington The Prime Minister's New year economic analysis left New Zealand “in a state of continuing drift.” said the Leader of the Opposition (Mr Rowling). In'a sharp-attack on Mr Muldoon’s address to the Rotary Club at Orewa. Mr Rowling said the message was “a far cry from the days of the economic miracle." For the first time it contained "some sort of grudging admission of defeat... of the fact that things in the economy have been bad." Mr Rowling said. There was no mention of “the light at the end of the tunnel routine. "What concerns me is that on the basis of this speech the situation will not improve." Mr Rowling said. “There is no plan or strategy that I can find anywhere there to deal with, for example, the question of inflation. There is nothing there to deal with the still worsening job opportunity

question. There is nothing there that shows any scheme to come to grips with the worsening deficits both externally and internally. There is nothing there that would suggest that interest rates can be brought back.” Mr Rowling said that Mr Muldoon was still asserting that the financial institutions had heeded his call for interest rates to be pegged — "each time he has said this the interest rates have gone up” — and the inevitable credit squeeze would pressure interest rates up further.

Attacking Mr Muldoon’s statement that the lack of growth in the economy was a result of deliberate Government policy, Mr Rowling said: "How any country can get itself out of difficulties ... by adopting a no growth stance. I would think would be beyond the comprehension of anybody who has thought about" it at all."

Mr Rowling challenged Mr Muldoon to produce figures

to back up his assertion that the greatest part of the expenditure on the expensive energy sector projects in the Government’s growth strategy would be spent inside New Zealand.

He should also explain to the country how the skilled labour required for the projects could be attracted in competition with the higherpaid Australian skilled labour market without producing a damaging flowthrough effect on the New Zealand labour wages, he said.

Mr Rowling attacked Mr Muldoon for avoiding any estimate of the total cost of the supplementary minimum price scheme and avoiding any explanation on how the tax dollar would be best safeguarded in the S.M.P. scheme.

"I had hoped that he would come up with a coherent plan for the economy," he said.