National alleges Govt con trick

Press, 29 August 1984, Page 1

National alleges Govt con trick

By

MICHAEL HANNAH

in Wellington

A Labour Party memorandum was released by the Opposition yesterday to back up a claim that the Government’s plan to “open the books” on the state of the economy is a “massive con trick.” The memorandum advises the incoming Labour Cabinet and particularly the Prime Minister to “be projected as individuals genuinely shocked by the deceit of the outgoing Administration, but doing their personal best to rescue the situation.”

It appears over the name of the Labour Party’s publicity director, Mr Simon Walker. However, Mr Walker said yesterday that he could not confirm or deny that he had written the memorandum, and he regarded all memoranda be-, tween himself and the party Leader, Mr Lange, as private.

The Associate Minister of Finance, Mr Prebble, also issued a disclaimer, saying that the decision to “open the books” arose from a Cabinet memorandum he had prepared, and he denied having seen Mr Walker’s memorandum before yesterday.

According to the Deputy Leader of the Opposition, Mr McLay, however, the memorandum showed that the “opening of the books” planned for tomorrow was r ‘part of a massive Labour Party publicity con trick carefully devised by the party’s publicity director.” The memorandum advises the new Government to achieve a “climate of realism — which means prevailing economic gloom,” as did the Australian Prime Minister, Mr Hawke, after he assumed power. “Hawke showed that the Liberals had deceived the public, enhancing his own Government’s credibility and, most importantly, dampening expectations of tax cuts, jobs, and massive welfare increases. “We should aim to achieve a similar climate of realism — which means prevailing economic gloom — over a very brief period,” the memorandum says. Mr McLay said it was clear that the Labour Party was following Mr Walker’s “master plan.” “The carefully orchestrated opening of the books is designed (to use Mr Walker’s own words) to put ‘blame... on the outgoing Administration and to pro-

ject the Prime Minister and his Cabinet ‘as individuals genuinely shocked’ by the situation,” Mr McLay said. The memorandum begins with the statement that it is known the economic outlook is bleaker than the Government had revealed. “We know that the Labour Government will have to take steps which will make it electorally unpopular. We know that the expectations of the party faithful may need to go unfulfilled, while our political opponents consolidate against us,” it says. It then blames previous Labour Governments for having a poor record in marketing themselves, and

being "squeamish” about using Government resources. It advises the Labour Government to set up a Government information unit which “in the interests of open government” would outline the incoming Government’s over-all strategy, reveal “the true current situation,” and “exploit the potential of that information.”

Warning the incoming Government that “expectations must be lowered,” it refers to the Australian experience after the election of the Hawke Government. It suggests the “whole image of the incoming Government should be one of total openness, even if, in

reality, your approach is quite guarded. “You have nothing to lose: faults and misjudgments will be-blamed on the outgoing Administration. You have a great deal of journalistic good will to gain (and you may need to stockpile it!). “You should be similarly open about your own economic intentions which should be projected modestly but with an overriding aura of ‘responsibility’,” it says. Mr Lange is advised not to hesitate to use television time to address the nation “on the realities of the economic situation,” and it says that there is potential to use TVNZ and the

National Film Unit for putting across the Government’s programme.

“The electorate doesn’t want to be patronised,” the memorandum continues. “It will only take painful treatment if it is convinced the. patient is in a critical condition.”

The Government is advised to “keep opinionmakers and, in particular, the business community onside, convinced of our capability and determination. “We need a Government marketing strategy which constantly sells the Government’s. inherited difficulties and the policies it has had to implement to overcome them.”