Govt has strayed —claim

Press, 18 March 1985, Page 1

Govt has strayed —claim

PA Gisborne The Labour Government has not lived up to its preelection economic promises, according to a Labour Party council executive member, Mr Rob Campbell. Speaking at the party’s regional conference at Ruatoria, Mr Campbell said the party had disappointed many in the economic area and angered quite a few. Instead of following up its pre-election proposals, the Government had strayed in another direction. Its policies seemed to be a reliance on export-led growth, removal of controlling or protective mechanisms with no replacement devices, and a rapid change of pace in all areas, particularly finance, he said. This was often done with a high degree of risk and at least short term cost. Mr Campbell said such a process was clearly visible in currency handling, removal of import controls, increased Government

charges, reduction of subsidies and removal of rent controls. The adoption of such policies and practices was a matter of real concern. “First, it is not what we said we would do and this can cause a loss of support,” he said. “Second, there are real doubts as to whether the strategy will work.” Such policies depended on too many variables to be assured of success, Mr Campbell said. “Right now the impact on our people of the various measures is too high, far higher than can be accommodated by a few extra transfer payments from the State to ease the pain.” Mr Campbell said Labour had to have willingness to stop free market experiments where the cost to the people was too high. This meant getting back to basic principles that included jobs for all, a sound domestic economy.