Richardson quizzes new Minister

Press, 19 December 1988, Page 8

Richardson quizzes new Minister

By

PATTRICK SMELLIE

A questionnaire to determine whether the Prime Minister, Mr Lange, has won the economic policy debate, was sent yesterday to the new Minister- of Finance, Mr Caygill, by the Opposition spokeswoman on finance, Miss Ruth Richardson. “There were clearly key areas of conflict between Messrs Douglas and Lange. “We need to know whether those issues have now been resolved in Mr Lange’s favour, or whether Mr Caygill is really going to be Roger Douglas Mark 11, as he maintains,” she said. The questions were: • Should the Government’s Budget be balanced? • Should the financial deficit be reduced by increasing tax or decreasing spending? • Should income taxes be progressive or flat? • Has the Government reached the economic and political limit of taxation? • In the Lange Government’s second term, is the economic policy priority

retiring debt or delivering higher levels of Government goods and services, and income support?

• Should economic change continue full steam ahead or stop for a “breather”? • Should New Zealand’s economic recovery be led by investment or consumption? • Should industrial relations and wages be determined by a centralised compact or flexible agreements? • Do the responsibilities of the Minister of Finance include reviewing social policy and expenditure?

• Should social welfare benefits be universal or targeted? • Is there a need for radical restructuring of the health system? • If the Government delivers social services, should the benefits of those be captured by consumers and the less welloff, or by providers? • Mr Caygill needed to make clear his position on these issues if there as to be a return of investment and business confidence, Miss Richardson said.