Sir Robert draws 2000 at Town Hall

Press, 16 May 1985, Page 5

Sir Robert draws 2000 at Town Hall

New Zealand had been damaged by an economically incompetent Government, the former Prime Minister, Sir Robert Muldoon, told an audience of about 2300 at the Christchurch Town Hall last evening.

Treasury theorists with no practical experience were leading the Government with bad advice, he said. The resulting damage was “immense” and would take years to repair, regardless of who was the Government.

The meeting resulted from an advertisement in Christchurch newspapers asking Sir Robert if he would address a meeting of 1000 people. It was placed by a Christchurch businessman, Mr Qui Van der Veer, on behalf of “lost, embarrassed and angry” National Party members.

The audience filled the auditorium and another 50 people watched the proceedings on video screens in the James Hay Theatre.

Sir Robert said that the standing ovation, raucous applause, and streamers which greeted his arrival reminded him of election meetings in 1975.

“But it is not me. It is the fact that we have a Labour Government that will make

people want to come to National Party meetings,” he said. In an hour-long address which attacked the Government’s performance of the last 10 months, Sir Robert said Labour had misled the people of New Zealand about national superannuation and A.N.Z.U.S. The Government had tampered with national superannuation although it had promised not to. It could be restored to what it was although the Government said it could not afford to do so. The Prime Minister, Mr Lange, had been told by the American Secretary of State, Mr George Shultz, that A.N.Z.U.S. could not exist without ship visits. “And yet for month after month, he pretended you could have both,” Sir Robert said.

New Zealand had lost good will among other Western alliance countries because of the Government’s stand on nuclear-ship visits. The good will was needed for trade relations, he said. New Zealand’s external debt had risen 44 per cent since the General Election and State corporation debts had increased 63 per cent — "and they said we had too

much debt,” said Sir Robert. The internal deficit had increased from $lOOO million last year to $2200M this year. Inflation, as measured by the consumers’ price index in June, was 4.7 per cent, several months after the price freeze had been lifted. It was now 13.4 per cent. Sir Robert predicted that inflation would reach 20 per cent when the goods and services tax was introduced. “Inflation from 4.7 per cent to 20 per cent in less than two years — I don’t think any Government has ever done that before in New Zealand,” he said.

He also predicted a “schmozzle” at the next wage round, forcing the Government to bring in wage and price controls. Labour had said at the election that New Zealand had a nil growth rate. “At June last year there was a 9.3 per cent growth rate for the year. It was the highest figure of any country of our type in the world,” said Sir Robert.

The estimated growth rate for this year was 0.5 per cent. “Now we do have a zero growth rate, though I think we will do better. That is a Treasury estimate and I am not keen on Treasury estim-

ates,” he said. Treasury policies had also forced up interest rates. Sir Robert predicted that today’s Government' stock tender would break the 20 per cent barrier. The lowest cost of a first mortgage would soon be 20 per cent, he said. Interest rates would be higher for other finance. “Everyone will be hurt. Some will be damaged beyond repair.” Sir Robert criticised the decision to implement GST because it would be so expensive to administer. About 1000 people and $2O million to $3O million would be needed to collect the tax. “They are trying to mop up unemployment by putting people on the State payroll,” he said.

National had rejected GST two years ago because it was the most expensive tax to collect. Sir Robert ended his address by saying that he intended to remain a member of Parliament “for a few more years yet.” He would dedicate himself entirely to getting rid of a “disastrous” Government and then ensure that the National Party pursued policies that would keep it in power.