Need for ‘less sterile’ economic policy

Press, 11 April 1989, Page 4

Need for ‘less sterile’ economic policy

By

PATTRICK SMELLIE

in Wellington

A National Party economic policy based on Rogernomics with only labour-market deregulation added on would be neither credible nor acceptable to the public, the former Prime Minister, Sir Robert Muldoon, said in Auckland yesterday. In a speech laced with references to “the majority of the caucus" realising that Government economic policies were failing, Sir Robert said a credible economic policy needed to be "warmer and less sterile, and directed towards getting this country moving again.”

"There is no doubt that there is a small group in the National caucus, most of whom have been publicly identified, who still see merit in the disastrous economic policies known generally as Rogemomics,” said Sir Robert.

In other countries, similar policies had been discarded in favour of “highly intelligent pragmatism based on knowledge and understanding

of the people in the individual countries.” Undesirable side-effects had outweighed benefits in countries where “unthinking application of an academic theory” had prevailed, he said.

Sir Robert also criticised the appointment of the Governor of the Reserve Bank, Dr Don Brash, and the bank's new statutory role to control inflation.

“That a Government could decide to do that, and a Governor of the Reserve Bank concur, is beyond comprehension.” said Sir Robert.

"I have to say that Dr Brash would not have been my choice as Governor of the Reserve Bank, but he is there and an incoming National Government would have to deal with him.” While Dr Brash was “a highly intelligent person,” Sir Robert said he had never regarded him as “one of our outstanding thinkers in the practical aspects of economic management.”