Douglas says he was not consulted

Press, 1 February 1988, Page 1

Douglas says he was not consulted

By

PETER LUKE,

political reporter The Minister of Finance, Mr Douglas, has confirmed that he was not consulted before the Prime Minister, Mr Lange, announced the deferral of the Government’s economic package. But Mr Douglas has firmly rejected any suggestion that he should resign, saying he still had the Prime Minister’s confidence. A crowded Beehive press conference yesterday heard Mr Douglas’s account of the deferral which brought him hurrying back from Europe. Although Mr Douglas insisted that the news media had overreacted to the deferral, his account still did not sit easily with

Mr Lange’s own announcement last Thursday.

Mr Douglas said that he had not known that Mr Lange was going to announce the deferral. He insisted both that it was not unusual for the Prime Minister to make announcements without telling him; and also that the deferral arose from technical reasons rather than doubts over the package’s provisions. Asked whether he agreed with the deferral decision, Mr Douglas said that it had been implicit for two weeks — since Mr Lange announced that before the package was finalised the income maintenance report of the Royal Commission on Social Policy would be considered.

This report would not be avail-

able until late February, giving the Social Welfare Department insufficient time to prepare for new tax structures, including the guaranteed minimum family income. The department required a 10 month “lead in” period, said Mr Douglas. Mr Douglas said he had not spoken to Mr Lange since he arrived back in New Zealand early Saturday morning, He said he had cut short his European trip only because of the impact that news media interpretations of the deferral would have on the business world. Picture, reaction page 6