‘National will end farmers’ hopes’

Press, 24 January 1986, Page 2

‘National will end farmers’ hopes’

PA Wellington The National Party’s agriculture position paper would end farmers’ aspirations to be independent of politicians’ whims, said the Minister of Finance, Mr Douglas, yesterday. The paper signalled a return to “Muldoonist” policies which had almost destroyed the industry, he said.

The position paper, released on Tuesday, called for “fair” interest rates, a “realistic” exchange rate and cutting the inflation rate to below that of New Zealand’s trading partners.

Mr Douglas said these were highly-desirable objectives. “They are my objectives.” . But unlike the Government, the Opposition was

silent on how National would achieve those objectives.

“The paper makes it specifically clear that National rejects this Government’s anti-inflation-ary programme of lower deficits fully funded through the stock tender programme.” Instead, it fully flagged National’s intention to adopt “more moderate” — and more inflationary — policies. Mr Douglas said “economic laxity” left National only one option — a return to Sir Robert Muldoon’s unrealistic exchange rates and controls on interest rates.

"It is not enough to talk about an ‘even, realistic exchange rate’, without saying ... how you intend to achieve it.”

Mr Douglas said farming was better off facing the short-term pain of adjustment and gaining genuine independence from politicians.