Lange seen as ‘short-sighted’

Press, 17 December 1988, Page 8

Lange seen as ‘short-sighted’

By

PATTRICK SMELLIE

in Wellington

The sacked Minister of Finance, Mr Douglas, yesterday made his first public speech since losing his portfolio, accusing the Prime Minister, Mr Lange, of short-sighted-ness and justifying his own actions. “The difference between me and David Lange is that I believe I can work with the Cabinet to achieve growth not just next year, but for another 10 to 15 years,” he told executives of the Ford Motor Company in Auckland. Mr Douglas said he had fought hard for his policies because he believed they were “the fastest and least costly way of providing genuine, lasting bene-

fits to the people of New Zealand.” Using the language of election campaigns, Mr Douglas told the business people, “Under a Roger Douglas Government, there would not need to be a wholesale shake-up of industry. Most of it has already happened.’’ . He defended himself against accusations that he was a “narrow-minded ideologue” and only concerned about getting inflation down, saying the events of the past year had prevented him promising too much. “When my portfolio was being challenged by the Prime Minister, how could I, with any honesty, talk positively about growth and jobs?” But the Leader of the Opposition, Mr Bolger,

said Mr Douglas’s speech was ludicrous. “What has Mr Douglas learnt in the last 48 hours since his sacking that provides the answers that have eluded him as Minister of Finance? "If Mr Douglas now has the answers to these problems, why has he not implemented them over the last four years?” Mr Bolger said. The political mood appeared to turn further against Mr Douglas yesterday after he allowed journalists access to confidential Cabinet papers. But his advisers said the former Minister intended to wage a campaign against Mr Lange well past next week’s leadership vote, if the Prime Minister remained

in office. Mr Douglas’s strategy was based on a belief that improvements in the economy would allow the Government to recover from a lengthy open leadership battle after Mr Lange had been replaced, they said. In his speech yesterday, Mr Douglas said recent improvements in inflation and balance of payments statistics proved his policies were working. Forecasts of 3 per cent growth in the economy suggested the same. But at much the same time as Mr Douglas was speaking, a large group of economists and manufacturing sector leaders were issuing a statement calling for a lower exchange rate, and warning of declining investment and profit-

ability under present policies.

Mr Douglas said there was no reason why New Zealand could not have growth of 4 per cent a year, “provided the right environment is put in place and kept there.” Unemployment could also fall below 100,000 within 18 months, once economic growth started, and there is no reason why interest rates should not fall to about 10 per cent over the next year. “Within 10 years we could lift average real wages in New Zealand by a third,” he said. “I don’t care if the benefits happen under' a National or Labour Government, the benefits will be to the people of New Zealand, whom I was elected to serve.”