Mr Douglas calls for Labour rethink

Press, 10 May 1982, Page 6

Mr Douglas calls for Labour rethink

PA Wellington The Labour Party might .'have to support a less egalitarian society in the short term to achieve its long-term goals, according to the Opposition member for Manurewa, Mr R. O. Doug--las. Mr Douglas made the comment in a “state of the Labour Party” statement leading up to the Labour Party's annual conference, which starts today. He said the need was urgent for Labour to put forward positive proposals because the party had lost the 1981 General ’ Election because not enough people believed it could deliver on its promises. Mr Douglas, Labour's spokesman on trade and industry. took a swipe at members of the Labour ‘Party whom he described as “limousine liberals or Remuera radicals” who “steadfastly avoided" studying economics and advocated protection and subsidies.

“That this puts them in the same camp as the conservative forces of the National Party does not seem to have occurred to them, in spite of their claim to be on the Left wing of the, party." he said. Some of'the questions that needed to be answered were:— © “Are we prepared to advocate a reduced rate of growth in public expenditure and transfer payments so that more resources could be made available for the private sector? 0 “What is our attitude to really changing the taxation system? © "What is our attitude to restraint in growth in money incomes per person?" . Mr Douglas said this last question was particularly difficult. as it demanded restraint by trade unions and might alienate some Labour Supporters. • Mr Douglas, who was sacked from the Shadow Cabinet in 1980 after releasing an “alternative budget,"

said he did not believe there was anything in his latest statement which required discussion beforehand with the leader of the party, Mr Rowling. The. economic reforms he recommended were along the same lines as his alternative budget, except in the area of tax reform, in which he was now “more radical." Mr Rowling has declined to comment on Mr Douglas’s comments.'He said he would leave it to the party caucus to discuss, but he might issue a statement in due course. Labour’s spokesman on finance. Mr R. J. Tizard. said Mr Douglas's ideas for economic reform were “unworkable.” “It is a typical manifestation of his attitudes, I think his ideas are unworkable." he said. “We have an established system of relativities in this country, and if he wants to upset them he does not know' what he is talking about."