Labour would devalue—claim

Press, 21 June 1984, Page 3

Labour would devalue —claim

PA Wellington A Labour government would devalue the dollar at least 25 per cent, the New Zealand Party leader, Mr Bob Jones, said last evening.

“Almost certainly they will thereafter float the New Zealand dollar as the

New Zealand Party has been advocating since its formation,” Mr Jones said, in an address at Masterton. However, a New Zealand Party government would not stop at a currency float. “Simultaneously it would instigate its major taxation reform of a shift in tax

emphasis from direct to indirect as urged by the McCaw report,” Mr Jones said.

A flat tax rate of 10 per cent would apply to all incomes over ?10,000, with incomes under that exempt. Deficits would not exceed 10 per cent with the balance funded by indirect taxes.' “This is sensible economic management that will make this country prosperous again.” Mr Jones said there would be a change of government this election.

“The whole situation is a tragedy for the nation and in many respects, albeit self-induced, a personal

tragedy for the Prime Minister. Until 1981 his economic management was sensible and appropriate for the circumstances.” But since then, the illthought “think big” projects, the “insane” economic freeze, and perhaps most of all the exchange rate, had all brought New Zealand to the brink of disaster and financial collapse, Mr Jones said.