N.Z. economy

Press, 17 December 1986, Page 20

N.Z. economy

Sir,—The new rises in interest rates show that the Government’s policies must be modified. A businessman who recently visited England says that Liverpool is like a ghost town, with huge factories all closed down and vandalised. We must not sit back and let Rogernomics do that to us. Our factories and farms must be kept going. The most practical alteration to present policies would be to replace Government borrowing from banks which raises interest rates by a certain amount of compulsory saving at a lower interest rate by those with incomes above a certain level. The resulting fall in interest rates would assist New Zealand exporters and import substitutes by keeping the value of our dollar somewhat below what it rises to when interest rates go up. As Christmas approaches, we should think of those whose livelihoods have been destroyed by unreasonable policies and resolve to support justice in the New Year. —

Yours, etc., MARK D. SADLER. December 15, 1986.

Sir,—Mr Rosenberg gave an incredibly clear, excellent analysis of the frightening extent of New Zealand’s overseas debt (December 13). Recently someone approached me and said not to worry, Rogernomics would work but he was against my suggestion that people and organisations making a business of trading shares should be taxed like everyone else. Because he could possibly lose money, he felt entitled to all gains tax-free. He had total faith in Rogernomics. I said I did not want to spoil his fun, but his attitude of profit without work was why New Zealand society is increasingly orientated to speculation not productivity. Some share traders do not even have time to get their scrip before their “profit-taking.” With 40 per cent of households involved with shares, it is now a political hot potato. These are complex issues on which Mr Rosenberg could perhaps comment. — Yours, etc., W. J. C. ROYDS. December 15, 1986.