Worker takes Mr Bolger to task over economic policy

Press, 23 July 1987, Page 6

Worker takes Mr Bolger to task over economic policy

By

BRENDON BURNS

in Kawerau

Workers in small factories in the shadow of Kawerau’s giant paper mill yesterday provided the Leader of the Opposition, Mr Bolger, with his first taste of 1987 election campaigning. In the process, Mr Bolger got cold-should-ered, was searchingly questioned on devaluation, monetary policy and Sir Robert Muldoon, and ended up with the accolade of being “a decent sort of bloke.” The East Cape electorate, surprisingly taken from National at the last General Election by Labour’s Anne Fraser, was Mr Bolger’s first true electorate visit of the campaign. After launching National’s Maori policy at the Rautahi marae, Mr Bolger was whisked ahead of schedule to the Kawerau Enterprise Agency. The party then moved on to a clothing factory making protective garments for industry. Mr Bolger was invited to wear a white-hooded hat. He declined but hanjted it to National’s East Rape

candidate, Wira Gardiner. The photographers angled for a shot, but Mr Gardiner shuddered and mumbled something about the hat would make him look like a member of the Ku Klux Klan. '

Not a good image when you hope your Maori heritage will help pick up votes in strongly Maori Kawerau.

Mr Bolger’s next point of call was a Tasmanowned factory making the cardboard cores on to which bulk paper is wound. It was smoko time , and the dozen workers provided a warm welcome.

The workers expressed concern about being dragged into strikes by the Tasman plant, one declaring, “Any Government that will do something about it, they will get my vote.” Mr Bolger said that as a Minister of Labour he had used compulsory conferences to end damaging strikes.

He suggested that the Minister of Labour, Mr Rodger, could have played a role to end last year’s damaging Tasman strike.

Another worker questioned Mr Bolger on

whether National would devalue the dollar. He said, in response, that the Government was deliberately holding interest rates high and this was maintaining the dollar’s level. A mix of policies would be used by National to bring down the dollar. But, said Mr Bolger, “We are not talking about a Government-intervened devaluation.” A worker, Mr John Almandoz, said this would lead to financiers pulling out of New Zealand and leaving it in a mess. Mr Bolger said that companies were already moving offshore because of the high interest and exchange rates. But, said Mr Almandoz, a devaluation would only help manufacturers and farmers and would push import prices up. Mr Bolger said, “It is not an easy question.” However, New Zealand had to start earning more than it was spending. He pointed to overseas debt and said export earnings were primarily affected by interest rates and the dollar’s value. Mr Almandoz said that under National overseas borrMring had also grown-

But Labour made it worse, said Mr Bolger. Why change from GST to Extax? asked one worker. Why not just take GST off basic food, rates and medical charges?

Because, said Mr Bolger, Extax was simpler and a better tax. Mr Almandoz had been waiting for another chance. He said that he had heard about Labour’s secret agenda, but did Sir Robert Muldoon want to help farmers with a devaluation? Or was that just Mr Muldoon letting off steam?

Mr Bolger said that if Sir Robert had not been referring to National policy, he was just letting off steam. Mr Almandoz went on to question Sir Robert’s reluctance to devalue in the change of Government in 1984. His own party had had to tell him to fall into line.

Mr Bolger said this had taken place at a time when there was a freeze on foreign exchange, so no money was flowing out of the country. Switching track a little, Mr Almandoz suggested National was now proposing to intervene bjj» instructing the Reserve

Bank not to accept high interest rate bids for Government stock.

“No, quite the reverse,” said Mr Bolger. “We are telling the Reserve Bank not to intervene to hold interest rates up.” The question of why National would provide subsidies for P.E.P.-type schemes which were not real work was then put to Mr Bolger. He said that it could be argued that the Kawerau Enterprise Agency did not provide true jobs, as it had been provided with support. Mr Bolger said providing suspensory loans to help create new jobs would cost no more than the dole.

A final question on what National would do with gangs brought the response that it would provide opportunities for all to acquire skills while toughening the laws.

Time had run out. Mr Bolger had a plane to catch back to Wellington. He thanked the workers and left.

Mr Almandoz, spoken to as he returned to work, said of the man he had grilled, “A decent sort of bloke.” His colleagues agreed.

Maori policy, page 3