Rogernomics slated

Waimarino Bulletin, Volume 6, Issue 243, 24 May 1988, Page 4

Rogernomics slated

Rogernomics was the butt of sarcasm and criticism on several occasions during the rates debate. A letter from Finance Minister Roger Douglas was circulated to councillors prior to the meeting. Mr Douglas, in what was headed an open letter to local authorities, cautioned councillors to fix rate increases in keeping with the current financial climate. "Against an environment of falling inflation, rate increases that exceed inflation will stand out very starkly," he said. Low inflation was good news, he said, and the flow-on effects of lower interest rates and debt servicing should be of considerable benefit to ratepayers. Following is the next excerpt from his long letter: "Rate increases that do not reflect the reality of Government policy will impose real costs on iocal businesses. "They will act to penalise the efficiency, especially those facing international competition such as farmers and exporters who cannot pass on these costs. "This in turn will penalise employment and investment in your region. "Rate increases that are based upon expectations of high and continuing inflation will hurt the least well off. They will aggravate the plight of those facing genuine hardship. Commenting, Cr John Compton said he wondered whether revenue sharing by the Government would stand out as starkly as the rate increases Mr Douglas spoke of. On several other occasions, reported elsewhere in this feature, councillors referred to Mr Douglas and the Government negatively. Rural councillors said the Government forced amalgamation on the district and this had placed on unfair burden on rural ratepayers.