Populist message ‘dangerous’

Press, 18 March 1988, Page 1

Populist message ‘dangerous’

By

BRENDON BURNS,

political reporter Privatising the Tourist Hotel Corporation has been suggested by the Prime Minister, Mr Lange. But in a wide-ranging address oh the role of the State, Mr Lange also said it was j now time the Government consolidated the changes it had already made. He singled out the Opposition spokeswoman on finance, Miss Ruth Richardson, for her views on privatisation and industrial relations, which he said were populist but dangerous. The 'speech also included a qualified defence!of Government

intervention and repeated Mr Lange’s view that the sharemarket might need to be subject to controls. Mr Lange said the Opposition had seen the! damage done by the bizarre interventions of the Muldoon Administration and now argued that all Government involvement in the market place must be damaging. It had a policy of wholesale privatisation, Miss Richardson arguing that the State’s function was to be the referee of private enterprise. This was a strongly populist approach, well placed to appeal

i to a strong strand of individualism. j , “The idea that all of our difficulties would vanish if only the size of the State could be i reduced is essentially the populist message that our problems ihave! a single, alien cause.” ,■ Such advocacy added to the ! undercurrent about the legitimacy of government, said Mr Lange. “I think that; is dangerous.” There was no evidence that the size of trie State had any relationship to economic; peri formance. j He was sure; some State busi-

nesses would be sold in the next few years. , I “But they'Will be! sold because of a judgment that I the payment of debt; is more important than keeping hold of la particular business.” I ; Mr Lange said the costs and benefits of any State asset sale had to be thoroughly examined. I In reference Ito the Tourist Hotel Corporation chain, IMr Lange said, “I am hot altogether certain! for instance, why ■ the Government should be in the hotel business.” | | But this should be looked at, he said.

christchurch

nelson

W AUCKLAND- WELLINGTON.