Douglas’s policy criticisms go too far—Caygill

Press, 5 April 1989, Page 1

Douglas’s policy criticisms go too far —Caygill

By

PATTRICK SMELLIE

in Wellington Criticisms of Government policy by the former Minister of Finance, Mr Roger Douglas, went too far, the present Minister, Mr Caygill, said yesterday. In a speech in Sydney on Monday, Mr Douglas said he was “appalled” by the Government’s mini-Budget, saying the failure to compensate low-in-come people for the increase in GST was “inhuman.” He also criticised the “austere” measures taken to impose across-the-board spending

restraints, rather than implement structural reforms in particular areas. Mr Douglas’s speech drew no reaction from the Prime Minister, Mr Lange, but Mr Caygill was clearly stung by the comments. Cabinet and backbench members spoken to by “The Press” yesterday said Mr Douglas’s speech was alienating him from the rest of the caucus. His action was likened by many to the critical outbursts of Mr Jim Anderton (Lab., Sydenham). Even potential supporters of

a leadership bid by Mr Douglas said he was damaging the Government by failing to observe caucus discipline. His recent criticism of the decision not to fully deregulate postal services had gone down badly in caucus. “He would do better to lower his sights and look to reinstatement to the Cabinet,” said one. “But he will not get there going about it this way.” There was reasonably strong support in the caucus for Mr Douglas to re-enter the Cabinet, but not as Minister of Finance, some backbenchers said. Mr Caygill said he regretted

Mr Douglas’s descriptions of the mini-Budget, saying he was overlooking the fact that lowincome people would receive a small increase in Family Support this month. This would help offset the GST increase, he said. “I think to call it inhuman is to go too far, and is engaging in rhetoric that isn’t appropriate whether you deliver it in Sydney or anywhere else.” On spending restraint, Mr Caygill said Mr Douglas was ignoring the impact of some of the reforms which he had promoted himself.

“It ignores the environment of the State Sector Act, and the financial reforms consequent on the Public Finance Bill.” It made no sense to give the managers of Government departments power to make their own spending decisions, and then have the Government step in over them to do detailed cost-cutting exercises. “Individual Ministers are free to do that,” he said. “But for the Government as a whole to do that, I think flies in the face of some of the reforms that Roger helped put on the statute books.

“Roger was Minister for five years,” Mr Caygill said. “He had plenty of opportunity to make major savings and reductions, and he did a lot of that “Nevertheless, Government spending increased progressively under his stewardship. I’m not at all critical of that, I was part of it. “But I think now that to pretend that there are some easy solutions which are being overlooked by the Government simply for want of courage or ability doesn’t actually stand up,” Mr Caygill said.