Richardson sees ‘motivator’ role

Press, 29 May 1989, Page 2

Richardson sees ‘motivator’ role

PA Taupo The Opposition spokeswoman on finance, Miss Ruth Richardson, sees herself controlling the Government’s purse strings after the next election, with the help of the high-polling Tauranga M.P. Mr Winston Peters, as “Minister of Motivation.”

Miss Richardson responded at the week-end to criticism that bickering between her and Mr Peters was continuing to raise doubts about who would head a National finance ministry if the party was elected next year. Replying to questions after an opening address to the New Zealand Futures Exchange annual conference, Miss Richardson confirmed that a big thrust of her economic policy would be labour market reform. The popular support of Mr Peters would assist her in convincing New Zealanders to accept changes in job practices, she said. Changes would include increasing productivity as a means of economic recovery, in the same way as the country’s-Asian neighbours. This would mean deregulation of the labour market and voluntary unionism, policies National had long advocated. Miss Richardson, who has a law degree, admitted finance was not her forte but added that she was gaining expertise.

"Now I'm just getting used to the jargon,” she said. Miss Richardson had been asked to specify National’s finance policy — after chastising the Labour Government for a lack of consistency in its economic direction. “From the moment David Lange sabotaged the December 17 flat tax package, there has been consistent doubt as to who is really in charge of economic policy,” she said. “Uncertainty over monetary policy continues to dog this Government. “The Prime Minister has expressed views on the exchange rate that are in direct conflict with the Reserve Bank — even last week the Prime Minister went so far as to commit Mr Caygill to consulting with the Reserve Bank on measures to bring down interest rates.” Miss Richardson said the uncertainty had resulted in New Zealanders having to pay some of the highest real interest rates in the world. New Zealanders were demanding

a high premium for their money, “We have a high-risk Government. As the old adage goes, high risk must be matched by high return.” While this might be good news for individual investors, it was disastrous for the economy as a whole. “High interest rates are choking off our prospects for economic recovery. They are delaying the expansion in output and jobs which is so desperately needed.” But while saying National would inject more stability into the economy, Miss Richardson stopped short of revealing new finance policies. National’s economic blueprint, “a statement of economic objectives and principles,” was regurgitated. The statement outlines National’s plans to curb government spending and “promote growth.” Its only specifics are that a National government would reintroduce tax deductability for retirement savings and remove the superannuation surtax.