Economy

Press, 14 September 1988, Page 20

Economy

Sir,—When one reads the comments 'of Mr Douglas (September 10) it becomes obvious he is either speaking with tongue in cheek or he is completely out of touch with the taxpayers and ratepayers of New Zealand. I write as a senior citizen and realise that interest rates should never have reached such destructive limits. However, Mr Douglas should examine the position of those who are now unable to earn but who have saved and invested their savings to provide for old age. Only too well, we realise that interest rates are falling but GST is still with us. Most of us have to visit doctors, dentists, opticians and other pro-

fessional people. GST is added to their charges. I have estimated these charges, combined with telephone, clothing, travelling and other costs, in my case come to $l5OO a year. Add to this the steady reduction of income and Mr Douglas should realise that the elderly and unemployed cannot see a “strong economic signpost.” — Yours, etc., J. L. MILBURN. September 10, 1988. Sir,—lt is about time Mike Moore backed his statements about the “cost to New Zealand” of “protection” with some figures. The costs of his free trade policies are easy to calculate. They amount to 120,000 needlessly unemployed, or more than $lOOO a year for unemployment benefits to each taxpayer who still has a job. In addition, as a result of the NationalLabour policy of increasing freedom of trade, the cost of interest on overseas loans because of chronic balance-of-payments deficits is about twice that. Mr Moore holds out doubtful hope of future free trade in food to justify removing protection and closing down more New Zealand factories now. With his article on August 16 followed by several subsequent statements repeating his attacks on “people who make things,” he has emerged as the leading propagandist for the policies which are destroying New Zealand’s prosperity.—Yours, etc. MARK D. SADLER. September 13, 1988.