P.M. favours intervention in economy

Press, 19 July 1989, Page 1

P.M. favours intervention in economy

By

OLIVER RIDDELL

in Wellington “Appropriate intervention” by the Government in the economy was advocated by the Prime Minister, Mr Lange, when opening the annual conference of Federated Farmers in Wellington yesterday. He talked about the role of the Government in delivering sustainable growth. There had been much debate about “intervention or non-inter-vention” in the economy. In its first term the Government had taken steps to remove itself from being actively involved in the economy where previous involvement had been both costly and distortionary, Mr Lange said. “But Governments cannot be totally non-interventionist,” he said. “There are some areas where, it is appropriate to intervene in the economy.” For example, the Government had a role in providing the legal framework for economic transactions, and in determining a fair and reasonable regulatory environment for business to work within. “But, most importantly we intervene to ensure that all New Zealanders, country or town, have access to the basic requirements of health, education, housing and the training needed for the job market,” Mr Lange said. “We will continue to intervene

when that intervention will promote growth and the well-being of our citizens.” Mr Lange put his case for limited intervention the . day before his former Minister of Finance, Mr Roger Douglas, is due to publish the first of a series of pre-Budget articles with his economic strategy up to 1993. Mr. Douglas was the apostle of “non-intervention” and the architect of Rogernomics which was the Government’s economic policy for three years. ; Inflation fight, page 4