Dr McCann stands by party’s policy

Press, 29 May 1984, Page 2

Dr McCann stands by party’s policy

The chairman of the New Zealand Party’s economic e committee, Dr Ewen in, says he stands by the party’s economic policy, in spite of errors in the draft budgets published with it last week. The party’s former Tamaki candidate, Mr Gordon Dryden, yesterday resigned from the party after he disagreed with the party leader, Mr Bob Jones, over the economic policy and the draft budgets. He had intended to seek the post of deputy leader. Mr Dryden said in Auckland yesterday that large areas of New Zealand industry would be bankrupt if the party accepted the economic policies of Dr McCann. Dr McCann, a senior lecturer in economics at the University of Canterbury and the New Zealand Party’s economic adviser, would not comment in detail yesterday on his role in formulation of the economic policy and the draft budgets. He had prepared a statement which would be submitted jto the “New Zealand Times,” the Sunday newspaper which he writes for. Although he agreed that his reputation as an economist might be damaged by the argument over the policy, he said he still stood by it. “The principles that the policy was based on I certainly do support and I am prepared to argue for them. It is a very sound set of principles,” he said. The main problem with the policy was the figures included in the draft budget. Earlier, Dr McCann said that Mr Jones had prepared the draft budgets and that he had advised against publishing them. “Mr Jones was strongly advised not to publish the numbers that were eventually published,” he said.

“There was a certain amount of scepticism about the numbers themselves.” He assumed Mr Jones had gone ahead with the publication of the draft budgets because “I suppose he felt the numbers were reasonable.” Since the draft budgets were released, Mr Jones has admitted they contained errors and said “we made a botch.” Dr McCann said it was unfortunate that attention had been focused on “a set of numbers” rather than the principles of the whole economic policy. “The’ principles are unaffected by these numbers. The proposals to float the exchange rate and to use that to replace subsidies and protection and also to reduce income , tax to add to people’s incentives are extremely important. “The Government would be well advised to follow them. The fact that these numbers have been published, while it is an embarrassment, in no way affects the approach, which is basically sound.” ; The draft budgets’ figures were no longer credible and should be forgotten. Asked about Mr Dryden’s comment that his economic policies would bankrupt large areas of New Zealand industry, Dr McCann said that if the remark was reported correctly it was based on economic thinking that is “so weak as to be insubstantial.” ' The economic policy would lead to a substantial depreciation of the currency. “That will stimulate local manufacturing. The stimulus to local manufacturing would replace the tariffs and import quotas that the industries currently receive,” he said. Mr Dryden’s resignation came after he released a

two-page statement under Mr Jones’s name on Friday, admitting errors in draft budgets included in the party’s economic policy. Mr Jones said the statement differed from one they had agreed to at an earlier Auckland meeting. Mr Dryden said yesterday he hoped the members would rally around their leader, NZPA reports from Auckland. “By my being out of it, they can get on with debating their economic policy,” he said. “The party has some excellent policies and people — but it won’t go anywhere until it gets its economic facts right. “If the party accepted the economic policies of Dr McCann, large areas of New Zealand industry would be bankrupt. “I told the council at

Easter that I could not fight an election on that policy.” Mr Jones said, “Dryden grand-standed. He saw it as an opportunity — a chance to take over. “When Dryden was selected for Tamaki, I thought we had scored a coup, but I did not realise the depth of ill-feeling against him. “Since his resignation, I’ve had calls from all over the country from members saying how thrilled they are, that we can now get on with it.” Mr Jones said the public row between him and Mr Dryden might harm the party, but only temporarily. He said that he and other senior members last week devised a plan to get rid of Mr Dryden. Mr Jones said the plan centred on Mr Dryden’s expected bid for party deputy leadership. Mr Dryden would have been encouraged to . stand but would have been crushingly rejected. That rejection, he said, would have demonstrated to the public and to Mr Dryden his standing within the New Zealand Party. “Now he’s done it for us and we’re thrilled — he has done us an enormous favour.” The Tamaki electorate committee chairman, Mrs Adrienne Teape, has received nominations for two men and two women to contest the Tamaki candidacy. The party will choose its deputy leader on June 24.