Democrats hope to hold balance of power

Press, 23 July 1987, Page 23

Democrats hope to hold balance of power

By

BARBARA AGNES

NZPA political reporter Wellington If the Democratic Party’s dreams come true on election night, it will win at least five seats and hold the balance of power in Parliament. As well as the sitting members, Mr Neil Morrison, the party leader, and Mr Garry Knapp, both in suburban Auckland electorates, the Democrats have hopes for the former party leader, Mr Bruce Beetham, in Rangitikei, the deputy leader, Mr Alasdair Thompson in Coromandel, and the former party researcher, Mr Terry Heffernan, in Wanganui. In the face of a 3 to 4 per cent approval rating in the polls, down from 30 per cent less than a decade ago, this could seem unreasonable optimism.

But Mr Morrison said the Democrats, formerly the Social Credit Party, had come up from under before. They had a sense of "ongoingness” not shared by rival minor parties, and a “vision” that carried them through the bad times. That vision was based on the economic philosophy of an English struc-

tural engineer, Major Clifford Douglas. In the 1920 s he postulated that the cure for spiralling inflation was to introduce universal “dividends” to all citizens in measure with increases in output. As technology replaced human labour, these dividends would gradually replace wages and salaries as the main source of income for all citizens.

He called the system Social Credit. Its detractors called it “funny money.” The Democrats still hold the Major Douglas’ basic tenets, but they are aware a complex economic theory is hard to sell to the voter.

“The tragedy (of Douglas and his concepts) was that his own disciples ... did the man irreparable harm by mumbling a lot of boring detail, jargon and buzz-words and missed the over-all philosophy,” Mr Morrison said in a recent speech. Now painting the policy with a broader brush, the Democrats believe people have a right to part of the wealth of the nation, but that it should not come through State-controlled benefits. It would instead be delivered in lower taxes, slashed interest rates, and the fostering of local in-

dustry to create more employment Socred/Democrat leadership has been a stormy area since 1960, when Mr Wilfred Owen, a foundation member of the Social Credit Political League and leader in two elections, quit in a row over economic policy. In 1970 a further leadership battle over monetary policy saw the league's first member of Parliament, Mr Vern Cracknell, lose to Mr John O’Brien. After two years as leader, Mr O’Brien broke away to establish the New Democrat Party, which collapsed soon after the 1972 election. • His successor, Mr Beetham, was ditched as party leader last year. Embittered by this abrupt end to a 14-year reign Mr Beetham called his former deputy, Mr Morrison, a “puppet leader” in the hands of a clique. He threatened to form a break-away party, but has since been endorsed as the Democratic candidate for Rangitikei, the seat he lost in 1984.

A 2.8 per cent swing his way would win the seat back from National’s Mr Denis Marshall.

Mr Knapp, former deputy leader, is the party’s longest-serving member of Parliament,

having upset National in a surprise by-election win in East Coast Bays in 1980. The seat is fairly safe, according to analysts, with a majority of 1908 under the new boundaries, although he may suffer from the party’s falling support. Mr Morrison’s hold on Pakuranga is not so secure. He won it from National in 1984 with a majority that on paper, with minor boundary changes, has been pared to only 44. In Wanganui the former parity researcher, Mr Terry Heffernan, intends to give the Minister of Education, Mr Marshall, a run for his money. Mr Heffernan came second, comfortably ahead of National last time, but would need a swing of 11.7 per cent to pull ahead of Labour.

Another runner-up in 1984 was the police spokesman, Mr Stuart Perry, in Waitotara. The incumbent of this safe National seat is the former Cabinet Minister, Mr Venn Young.

In the old Hauraki electorate, Mr Thompson, aged 38, a motelier and the party’s finance spokesman, also ran second. On paper in the new Coromandel seat, however, he lags to third place behind Labour.

At the party’s annual conference in Lower Hutt last month, Mr Morrison urged New Zealanders to give the Democrats the mandate to form the Opposition in the next Parliament.

Off the rostrum, however, Mr Morrison admits the party has some image problems. The name change in 1985 left behind a lot of voter identification. It used to be, he said, that everyone was related to someone who was involved with Social Credit or knew about it

"It did have an image, some kind of historical context” he said. “We should have spent $20,000 to get the transition across. We didn’t have the money.” Mr Morrison, however, felt it was important to do the “difficult boring things” that did not pull profile, such as putting the party back on a sound financial basis. After the election, come what may, the Democratic Party is in for an overhaul. Branches and membership will be built up, and a “big, well-oiled party machine” constructed.

Because the Democratic Party is here to stay. "It only thinks in terms of: ‘When’s the next opportunity?’,’’ Mr Morrison said.