Mr Bolger predicts economic ‘crash’

Press, 16 April 1986, Page 9

Mr Bolger predicts economic ‘crash’

Timaru reporter

The Minister of Finance, Mr Douglas, will have to go if a “crash” in the economy is to be prevented, the Leader of the Opposition, Mr Bolger, told a public meeting in Fairlie on Monday evening.

“There is no reason that the person who created the economic mess should not be forced out of his job as Minister of Finance,” Mr Bolger said.

“Mr Douglas has no credibility left, and should go.”

Mr Bolger told the crowd of over 100 that the Government’s policies on inflation, the exchange rate, interest rates and taxation had produced dismal results so far.

If the present interest and exchange rates continued for much longer, thousands of farmers

would crash together with the industries, towns and cities that service agriculture, he said.

A National Government would repeal the proposed livestock tax and GST. The latter was too complex and too time-consum-ing for small businesses and farmers, said Mr Bolger, and National would replace it with a simpler alternative. Speaking at the opening of an administration building for Dan Cosgrove, Ltd, in Timaru earlier in the day, Mr Bolger predicted that inflation. would be at or near 18 per cent after the introduction of GST on October 1. This would result in industries retrenching, bringing job losses, lower profits and a lower standard of living.

“Inflation will rise again in the next three months as the effects of

the high wage round and increased Government charges for electricity and postage flow through,” he said.