Richardson predicts dollar drop

Press, 24 March 1988, Page 1

Richardson predicts dollar drop

By

BRENDON BURNS,

political reporter New ! Zealanders would be pleased to know; that Sir!Robert Muldoon’ had fully recovered from b6wel surgery and had returned to his old form, said the Opposition spokeswoman on finance,! Miss Ruth Richardson, yesterday. She was commenting on a statement by Sir Robert in which he (criticised her stand against the | devaluation of the dollar. I He said this was essential to

d * u put life back into the export industries. It would provide people (with jobs, generate more tax, (reduce the internal and external deficits, and ultimately lead to repayment of overseas debt ‘ from earnings ;i instead of asset sales. ( ; • ‘ ( i “It is la great pity that both our Minister of I Finance I and our Opposition spokeswoman on finance: have still not observed this sifnple lesson,’;! said Sir Robert.' ' !■ I ( Miss Richardson said while she was pleased Sir Robert had re-

gained his form, the National Party under Mr Bolger’s ieader- . ship understood the devastation export industries had suffered. The dollar was overvalued but this was because of Goverjnment monetary policy and failure to deregulate the labour market and cut Government spending. She objected strongly- :o (the Minister bf Finance’s daily assertion that there was nothing'(he could, do to change the excharige rate. : • ! ' I I' I Miss Richardson predicted the dollar would soon' drop sharply

but said the Government had done nothing to prepare the trading sector for this contraction. Any gains I would be lost rapidly because of the regulated labour market 'and cost pressures,' she said.; ( Mr Bolger declined io comment specifically on Sir Robert’s criticism of I Miss( Richardson. But he later issued a statement which said that however! important interest and exchange rates were, they! did: not produce a complete answer.