Economy

Press, 6 July 1988, Page 18

Economy

Sir,—l have often written about this Government’s inability with economic matters. Unfortunately, my fears are being realised and the Government looks more like a schoolboy debating team way out of its depth. The June 29 statement about deficit blow-out shows incredible naivety in blaming Treasury alone. At least it is a change from blaming “think

big.” The longer this Government has in power the more chaos it creates. Anybody could have told it the tax take would be way down, but then the Government did not realise it cannot squeeze tax from people whose earning capacity it is destroying. Double standards apply as the Government penalises provisional taxpayers 18 per cent compound interest for wrong estimations, yet the Government will not even question Treasury or itself for incompetence in their own estimations. What hypocrisy! What a confused shambles. Labour’s flawed economic theory is dragging New Zealand into poverty.—Yours, etc.,

W. J. C. ROYDS. June 30, 1988.

Sir, —I have grown steadily more and more appalled at our Labour Government’s mismanagement of the economy. This morning I read with an emotion that can only be described as horror that the Government has grossly miscalculated its Budget deficit. I read on and was shocked to find that most of this error was owing to a faulty program in the Treasury computer. This miscalculation will inevitably mean cuts in Government expenditure as the Government must cut its coat according to its cloth. When our Government’s organisation is in such a state that the future of New Zealand hinges on the working of a faulty computer and the minds of our Ministers it is time to migrate to Australia. — Yours, etc.,

R. SCOTT. June 30, 1988.

Sir, —The Government announces a $2.28 error in forecasting its deficit. How very ironic when coming Government legislation expects all self-em-ployed and companies to accurately forecast their profit for provisional tax purposes, with severe penalties for underestimating, regardless of reason (and only allowing a lesser rate as compensation for overestimating profit and, therefore, overpaying tax). If the Government believes that businesses can accurately forecast their profit with so many unpredictables beyond their control (i.e., exchange, interest, tax rates, national disasters, adverse weather affecting crops), surely the Government should be setting a better example. — Yours, etc.,

M. J. SPENCER-BOWER. June 30,1988.

Sir,—l have long held the conviction that the all-important post of Minister of Finance should be a non-political appointment of the best available financial manager with a convincing record of successful and beneficial financing. Roger Douglas has ably demonstrated his self-con-fidence and ability to talk and write, but records of beneficial financing are singularly lacking. Rogernomics has caused not only unemployment at record and still-rising levels, but also the doubled cost of most goods and services. From all citizens comes 10 per cent of all we buy and sell, in addition to increased taxation. Yet we are now faced with the staggering deficit of $3.28. Under skilful planning, our national superannuation could work well. Farmers could receive their fair share of producSsales and a plentiful supply

of local fish could be ensured. Much more than small decreases in inflation are required. — Yours, etc., TED MULCOCK. July 1, 1988.

Sir, —So, “thousands of Government department jobs must be axed... to produce a truly productive economy” (July 1). In light of this startling revelation I can only surmise that the thousands to be axed will be given useful employment in building thousands of warehouses around the country, in order that the increased productivity of the truly productive economy can be stored until someone, somewhere has a job and can actually purchase the goods produced. However, the fate of the warehouse builders and the few producers, once the warehouses are built and stocked, remains a mystery. And so we eagerly await further revelations. — Yours, etc., MALCOLM WILLIAMS. July 1,1988.