Call to cut Govt controls

Press, 20 November 1982, Page 6

Call to cut Govt controls

PA Wellington Worsening:- • conditions overseas have increased the need for New Zealanders to recognise the limits-to Government . capacity to meet expectations, says the chairman of the Planning Council, Sir Frank Holmes. He was commenting on the release of the council’s latest report, “The Public Sector - An Overview.” The report summarises highlights of four recent papers on the role of government. Sir Frank said the council’s view was that central

government should devote more of its energies to improving the general climate for economic and social advancement. There should be fewer controls, regulations, incentives, and concessions. “Such detailed intervention has often put excessive emphasis on maintaining the status quo, raised costs, and impeded necessary adaptation to changing circumstances.” At the same time, the council says, economic constraints make it necessary to adopt a more selective approach to social assist-

ance. Need should be a more prominent criterion and a more systematic determination of Government priorities is essential to a better system for the allocation of public funds, it says. The council is concerned that procedures to control spending take too short a view and may lead to unplanned shifts in priorities as seem to have occurred in welfare areas. Sir Frank said he hoped the Government would implement a 1978 promise to improve and publish forward

estimates of spending and use of manpower. Improvements were also required in measuring the cost-..0f government, he said. Hundreds of,, millions of dollars Of tax revenue were forgone each year through special assistance tb individuals and business. “The costs of pursuing policies in this .way are often now known, let alone monitored and publically debated. Changes are essential if government performance is to be properly evaluated and accountability improved,” said Sir Frank.