Leo Menefy - LABOUR

Waimarino Bulletin, Volume 5, Issue 10, 4 August 1987, Page 10

Leo Menefy - LABOUR

The Labour Party candidate for King Country in the general election is Taumarunui accountant Leo Menefy. Mr Menefy is treasurer of the Tongariro Labour Electorate Committee and an executive member of the Waikato Labour Regional Council. Mr Menefy is eager to "fly the flag" for Labour in the King Country seat, currently held by opposition National party leader Jim Bolger. Leo Menefy: "Number one enemy is excessive inflation. We have suffered it for many years and it has denied stability of incomes to all sectors of our economy and has eaten away at our standard of living. "The number one aim must be to get control of the inflation rate and this has been the whole thrust of the Lange Government's Economic Policy and there are clear signs of improvement now emerging from the solid base achieved so far. "For instance, the clamp down on Government overspending and heavy overseas borrowing has quickly improved the country's deficit and a good sustainable growth has now ap-

peared in both the local and export markets. This is the start of a turning around and I take some pride in being a Labour candidate and actively supporting an able competent and well overdue Government team. "Interest rates follow inflation (not the other way around in my view) and those rates, on indications now emerging, must decline. "Many farmers worry too much I think, about the strength of our dollar. Per capita basis New Zealand is a high importing/exporting country. The higher the cost of imports the higher our inflation. Our agricultural industries consume a great bulk of our imports.

"The farmers' better option is to enjoy the lower inflation, lower term and seasonal interest rates and the general 'cushioning' effect of a strong New Zealand dollar. Devaluation (or soft currency) leans towards higher than otherwise inflation interest rates with consequent higher input cost to the farmer. The stronger dollar is the much more stabilising alternative. Any good effect from a devaluation has only ever proved to be short lived anyway. "I wish to give electors some facts from our Department of Statistics. They refute what Mr Bolger is saying. There is in fact growth in our

economy. Recently released is the Departmen t's Gross Domestic Productivity annuai increase figures showing 2.4% increase for the year ending 31 March 1987 which follows 2.2% for 1986 and 5.6% for 1985. "The heartening result of the latest growth is the better than average improvement in the areas of . agriculture, transport and communication. This is particularly pleasing for the regions. "Mr Bolger asserts that the export sector is collapsing, however the facts of the matter are that exports improved for the year ending 31 March 1987 in money terms from $10,571.7 billion to $12,115.5 billion (an improvement of $1,543.8 billion or 14.65%). "This is substantial, but the most pleasing feature. is that in volume terms exports improved 12%. This couple with the fact that imports in volume terms reduced 6%, paints a better picture than Bolger would have us believe. "Mr Bolger makes a big play on inflation being 18.9% but fails to say it includes the 'one off impact of GST of approximately 6%-7%. The March 1987 quarter C.P.I. increase was 2.3% - a full 1% lower than anyone expected. The June 1987 quarter was 1% higher than expected at 3.3.%. "Taking the two quarters together gives us an annualised rate of 11.2%. All the experts forecast single digit inflation for the year 31 March 1988 and there is every indication now that this will result. "National Party advertising indicating a $15,000 overseas debt for every man, woman and child is misleading. The Official Government overseas debt is half this figure. This Government borrowed to pay off "Think Big" costs (on $2000 per man, woman and child); the remaining $5,500 per individual was already standing on the books of the National Government from its time in office over 9 years".