Top banker to resign

Press, 10 February 1982, Page 6

Top banker to resign

PA Wellington Mr Len Bayliss, one of the most outspoken critics of the Prime Minister’s handling of the economy; will resign next month from his post as chief economist at. the State-owned Bank of New Zealand. Mr Bayliss confirmed his resignation last evening, but deelined to comment on his reasons for leaving the post, He is aged 54. Mr Bayliss said that his resignation would take effect from the end of March. He had not had the opportunity to think much about the future, but said that he planned to open an economic consultancy on April 1.

"I am not sure how it will go," he said. “But 1 hope to find customers who will wish to avail themselves of my services. So far, I have done nothing about seeking out any business contacts.” Mr Bayliss has long been the subject of speculation that the Prime Minister (Mr Muldoon) and the bank had played pressure on him to stop; .commenting on the state 1 of the economy.

He declined to discuss this last evening, saying:' “L have no particular;' continent; to make on that-‘particular 1 subject. It would be? improper.” In a big raw in..Pariiament last October; yprovoked bv the .Labour Barty asking whether reports' that /Mr Bayliss had been “gaggdd” were true, the Minister' of Labour (Mr Bolger) said that the “management and chairman of directors of the bank

had told Mr Muldoon that they deeply regretted Mr Bayliss's comments.”

Mr Bolger went on to reply to a question saying that he did not know "whether it was Mr Muldoon's precise intention" to silence Mr Bayliss altogether. Mr Bolger said: “It could be presumed overseas that Mr Bayliss had some authority. That would not be helpful to New Zealand.”

In September, Mr Muldoon called into question the reliability of forecasts by Mr Bayliss. He accused him of "injudicious” comments about devaluation of the New Zealand dollar and said that his calls for devaluation had led to extra costs for New Zealand. Mr Bayliss was one of the first men sought by Mr Muldoon when he set up his economic think-tank in 1976. Mr Bayliss was in the thinktank until 1977. He was with the Reserve Bank from 1951 to 1961, followed by a 15-month spell with the Bank of England. He then joined the Treasury, and the Monetary and Economic Council, a post he held until joining the Bank of New Zealand in 1966.

The Bank's general manager, Mr W. J. Shaw, confirmed Mr Bayliss's impending departure last evening saying: “His resignation was made and received in a completely amicable fashion. I wish him well in his new enterprise."