Counter-attack by Mr Douglas

Press, 4 December 1985, Page 3

Counter-attack by Mr Douglas

PA Wellington The Minister of Finance, Mr Douglas, yesterday attacked a joint Manufacturers’ Federation and Federated Farmers’ statement that Government spending was still “a major growth industry.” Government spending as a percentage of gross domestic product had been higher for three successive years under National than it had been under Labour, said Mr Douglas. “We have cut Government spending in proportion to G.D.P., which is the only sensible way to measure it, and cut it quite significantly,” he said. Government spending had been 38.2 per cent of G.D.P. in 1981-82, 39.2 per cent in 1982-83 and an all-time record of 40.8 per cent in 198384, Mr Douglas said.

Labour had cut those figures to 37.9 per cent in

1984-85 and the projected figure for 1985-86 was 38.1 per cent. Mr Douglas said he expected the president of the Manufacturers’ Federation, Mr Keith Tyrrell, and the president of Federated Farmers, Mr Peter Elworthy, to be aware of those figures. The joint statement released by the two industry groups on Monday commended the Government for its longer-term economic objectives, but expressed concern about the Government’s “apparent reluctance” to recognise that considerable pain was being experienced in both farming and manufacturing.