Union defiance on freeze may lead to snap poll: P.M.

Press, 30 June 1982, Page 1

Union defiance on freeze may lead to snap poll: P.M.

PA Wellington The possibility of a snap General Election was raised by the Prime Minister (Mr Muldoon) yesterday.

Mr Muldoon told the dairy farmers' annual conference in Wellington that any attempt to beat the Government's wage-price freeze through strike action would lead to an election “which the Government will win." "I would have no hesitation in going to the public if the Federation of Labour were foolish enough to try such tactics." he said. Mr Muldoon, speaking to the dairy section of the Federated Farmers lambasted “rotary circuit economists" for their criticism of the freeze, imposed by the Government last week/ He warned that the economy would not suddenly have the controls removed when the freeze ended in 12 months. Mr Muldoon did not mention his own previous statements which have been harshly critical of price controls, but was scathing about economists who had been "shocked at this heretical disregard of their textbook theology.” “There is not one of them who has ever had to be elected,” he said. “Most of them totally fail to understand that in a democracy a government remains in office because the people wishes to see it there. “This means that any economic policy must be seen by the majority of the people to be fair.” It had become clear in the last week that the people were backing this move, Mr Muldoon said. Further progress toward

; deregulating the economy ? would be slow, he said. "There is no way that it - would be possible simply to j move from a state of total 1 control to total freedom." i How the transition was accomplished would depend ■ on how the freeze worked ' during the next year. “It will be the object of the Government to put in place during that time policies that will hold the ground that has been gained, while at the same time ensuring that those who attempt to break the line, whoever they may be, do not succeed," Mr Muldoon said. The Federation of Labour will announce its policy in opposition to the wage-price freeze after next Tuesday’s executive meeting. The F.O.L.’s president (Mr W. J. Knox) said yesterday that the policy would not be forced on the trade union movement by the Prime Minister. Mr Knox would not elaborate on what type of action the federation was likely tb take but he did say that it would be on a national basis. Commencing on Mr Muldoon’s threat to call a snap election, Mr Knox said that this was a.diversionary tactic designed to take attentionaway from the Government’s economic inadequacy and failed “think big policy.” “As far as I am concerned the people of this country must face the reality that the Government- is not up to ruling,” Mr Knox said. The Drivers’ Federation advocate, Mr R. J. Campbell,

said that in associating the FOL. with a pledge to take protest action against the wage freeze. Mr Muldoon was “reacting hysterically to a moderate stance." "All that the Drivers' Federation and I. as its advocate. have said is that we intend to use the legal machinery available to us to negotiate' on all of our claims, including the $35 a week wage claim." Mr Campbell said. Because the drivers' agreement did not expire until September 10. it would be premature to threatenindustrial action until the federation had met and negotiated with employers, he said. The Labour leader (Mr Rowling) reacted by challenging Mr Muldoon to go into a snap election at any time on the issues of the economy, the “think big” growth strategy, and the conduct of the Government. The Labour Party and "the vast majority of New Zealanders are just waiting for a chance to get rid of the last remnants of a totally bereft, confused, and failed administration,” Mr Rowling said. The Labour Party’s president, Mr J. P. Anderton, said in Auckland yesterday, “the sooner Mr Muldoon goes to the country the better,” and warned that he would fight an election on the wage-price freeze. ■ ' < “Tomorrow would not be soon enough for New Zealanders to have the chance of getting rid of the present Prime Minister and his mis-

erable apology for a Government.” Mr Anderton said. "They have broken every promise and commitment in the . book and have shown themselves to be bankrupt'of both ideas and principles. "The Labour Party has been preparing vigorously for just this eventuality and is ready in every way to face the country as soon as the Prime Minister steps out of the Beehive." Mr Rowling said the threat of a snap election confirmed that the wage-price freeze was motivated by political rather than economic factors. “Last year the Prime Minister was threatening snap elections over the Springbok tour," Mr Rowling said. “Now he is threatening a snap election if there is any attack on his totally inadequate wage-price control measures. "The ploy is as obvious now as it was then.” The prospect of an early election was also welcomed by Social Credit’s deputy leader Mr G. T. Knapp, who called Mr Muldoon’s threat “a classic case of Muldoonism.” “Confrontation and division have been the hallmarks of his Prime Ministership,” he said. The threat was no surprise. The Social Credit League was in "great shape for a .fight” and would welcome the chance to increase its representation in Parliament.