National ‘hesitant’ on economy

Press, 20 July 1984, Page 4

National ‘hesitant’ on economy

OLIVER RIDDELL

in Wellington The outgoing National Government had moved too hesitantly to redirect the New Zealand economy, according to the director of advocacy at the Employers’ Federation, Mr Max Bradford. The mood of the General Election had shown a surprising consensus about the desirable direction of change for the economy, he said. This redirection had been started by National four or five years ago. It had rightly been cautious given the very strong pressure groups ranged against dismantling the awesome array of protectionist devices which had favoured New Zealand industry, agriculture, and commerce. “In the end, though, the Government moved too hesitantly,” Mr Bradford said. Business and agricultural interests had become impatient for a more rapid adjustment process, without asking for Government financial help in many cases. Most business sectors had found that a competitive environment was not too

bad in practice, he said. Growth with profitability was far better than no growth and stagnation. Government regulations and control had come to be seen for what they were — significant inhibitors to economic recovery as well as to growth in living standards and employment. Impetus for change was shared by most groups in the community, Mr Bradford said. That provided fertile ground for obtaining the consensus that formed such a crucial part of Labour’s approach to government. If the stated direction of Labour in economic matters was followed, there would be a good match between the business community’s attitudes for change and Labour’s own economic policies. Events of the last two days had shown that the incoming. Government was prepared to take decisive action in crucial areas of policy, he said. Labour had been associated traditionally with policies of State interventionism, subsidisation of industry and agriculture, import licensing protection for

industry, and heavy State involvement in such areas as export marketing and new product development. Mr Bradford said that the policies and statements of the incoming Labour Government, however, suggested strongly that the traditional approach had been dropped in favour of liberal economic policies. The only policy which had not followed this new pattern was its prices and incomes policy, he said.