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Date: ;;Lb ( \O ~"'{.~ : PREDETERMINED POLICY OR 'BUREAUCRATIC COUP'?

ANDREW GEORGE BARTON

A thesis submitted for the degree of Bachelor of Arts with Honours at the University of Otago, , .

1 November 1989

programme. programme.

Douglas's Douglas's stated stated policies policies and and the the Government's Government's economic economic

argument argument in in the the light light of of overall overall consistency consistency between between

conclusion conclusion reveals reveals that that this this is is an an erroneous erroneous line line of of

based based on on policies policies formulated formulated by by bureaucrats. bureaucrats. The The essay essay m m

Labour Labour Government's Government's economic programme, programme, economic but but rather rather was was

that that Douglas's Douglas's policies policies had had little little to to do do with with the the fourth fourth

The The essay essay then then analysises analysises an an argument argument by by Bruce Bruce esson esson J J

Toward Toward Prosperity Prosperity and and There's There's Got Got To To Be Be A A Better Better Way! Way!

Rogernomics Rogernomics are are listed listed according according to to the the two two Douglas Douglas texts, texts,

Under Under an an eight-point eight-point framework framework the the policies policies of of

Rogernomics Rogernomics is is in in the the eyes eyes of of its its namesake, namesake, Roger . Douglas.

This This essay essay is is concerned concerned with with understanding understanding what what exactly exactly ABSTRACT ABSTRACT PREFACE

I would like to thank three people in particular for their part in this essay. Firstly, Professor Richard Mulgan for his astute supervision and patience; and secondly, Brent Alderton for his corrections of certain dubious economic points made in the drafts, and also Michael Gibson for his help with grammer and syntax::. Finally, I would like to thank those people who ·offered advice, at the start of the year, on possible directions this essay should take. TABLE OF CONTENTS

Introduction p.5

CHAPTER ONE p.7 Toward Prosperity

CHAPTER TWO p.31 There's Got To Be A Better Way!

CHAP'IER THREE p.40 In Government - Rogernomics Usurped?

CHAP'IERFOUR p.52 Conclusion

Postscript p.54

Bibliography p.55 5

INTRODUCTION As Minister of Finance during the first term of the fourth Labour Government, Roger Douglas oversaw what many believe to be the biggest reshaping of the economy in the . The reforms instituted during this time have left a permanent mark on the New Zealand psyche. Not one New Zealander can be said to have been unaffected in some way by the changes 'Rogernomics' wrought on the country, whether it has expanded their pay packet or simply left them without a job. Roger Douglas has been firmly identified with this economic transformation, so much so that the Labour Government's economic programme has been named after him. As Colin J ames succinctly puts it:

. . . Douglas has come to be identified with the big change underway in the 1980s. People hate him, fear him, admire or even love him. He perplexes, mesmirises, even bewitches them. To some he is devil incarnate, hard and unfeeling destroyer of families and lifetimes of labour; to others he is the usher to opportunity and freedom.l

However, this essay is not an exercise m personality studies, nor is its purpose to critically analyse the relevant merUs or demerits of Rogernomics as an economic strategy and its effects on the New Zealand economy. It is to compare the contents of Roger Douglas's two major publications, There's Got To Be A Better Way! and Toward Prosperity, to see whether there are any consistent themes which run through both texts. Despite many people's identification of Douglas with the Labour Government's economic reforms, some observers, most notably , have questioned the role Douglas's ideas have played in the actual implementation of the Government's economic programme. They have instead highlighted the role

1 C. James The Quiet Revolution p.133 6 played by the bureaucracy in formulating economic policy. This essay will endeavour to examine Douglas's own statements In the light of this argument to see whether Rogernomics does m fact diverge from what the officials recommended and what Jesson claims was the real basis of the Labour Government's economic reforms.

p.lO p.lO Prosperity Prosperity Toward Toward Douglas Douglas R. R. 3 3

p.2 p.2 Way? Way? Better Better A A There There Is Is Rogernomics. Rogernomics. S. S. Collins Collins 2 2

Council. Council. City City Man1lkau Man1lkau new new the the of of member member a a

becoming becoming politics, politics, body body local local entered entered he he 1965 1965 in in while while Manukau, Manukau,

m m campaign campaign electoral electoral Moyle's Moyle's Colin Colin managed managed successfully successfully

Douglas Douglas 1963 1963 In In . Auckland. of of University University the the at at accountancy accountancy

in in degree degree a a towards towards studying studying simultaneously simultaneously while while Auckland Auckland

South South in in Carpets Carpets Bremworth Bremworth for for work work to to went went Douglas Douglas Grammer, Grammer,

Auckland Auckland at at education education school school high high his his completing completing After After

principles} principles} his his compromise compromise than than rather rather Lee Lee A. A. John John with with

wilderness wilderness political political the the into into plunging plunging father father his his of of proudly proudly talks talks

himself himself Douglas Douglas " quo. quo.

status status the the to to opposed opposed temperamentally temperamentally 2 2

and and change change radical radical of of "promoters "promoters rebels rebels being being for for

reputation reputation a a had had family family Douglas Douglas the the that that assert assert to to Collins Collins leading leading

day, day, their their in in left-wingers left-wingers prominent prominent were were Both Both MPs. MPs. Party Party Labour Labour

were were Douglas, Douglas, Norman Norman father, father, his his and and Anderton, Anderton, Theophilus Theophilus

William William grandfather, grandfather, maternal maternal Douglas's Douglas's Both Both life. life. in in on on later later fray fray

political political the the enter enter to to destined destined almost almost seemed seemed Douglas Douglas tradition, tradition,

Party Party Labour Labour in in steeped steeped family family a a into into 1937 1937 m m Born Born

Background Background

himself. himself.

Douglas Douglas to to according according is is Rogernomics Rogernomics what what exactly exactly at at look look then then we we

source source same same the the Using Using 1987. 1987. in in published published Prosperity, Prosperity, Toward Toward in in

Douglas Douglas by by out out spelled spelled as as objectives objectives the the at at looking looking by by Rogernomics Rogernomics

of of fundamentals fundamentals the the consider consider to to on on moves moves then then chapter chapter

The The date. date. to to career career his his of of achievements achievements major major the the list list to to and and

Douglas, Douglas, drive drive that that influences influences and and pressures pressures the the into into insight insight some some

gain gain to to order order in in 1989 1989 until until up up life life Douglas's Douglas's Roger Roger to to background background

some some firstly, firstly, provide provide to to a1ms a1ms chapter chapter the the sections, sections, three three

into into Divided Divided paper. paper. the the of of bulk bulk the the comprises comprises chapter chapter This This

PROSPERITY PROSPERITY TOWARD TOWARD

ONE ONE CHAPTER CHAPTER 7 7

1973 1973 8 8 Dec. Dec. Listener Listener NZ NZ Make Make To To Decision Decision Hard Hard A A Wasn't Wasn't It It Reid Reid T. T. 5 5

p.13 p.13 Ro&ernomics. Ro&ernomics. Collins Collins 4 4

houses houses industry industry building building the the in in capacity capacity idle idle was was there there "if "if that that

view view 'Kirkian' 'Kirkian' the the following following than than rather rather housing housing existing existing of of use use

efficient efficient more more encouraged encouraged Douglas Douglas Housing, Housing, of of Minister Minister As As Office. Office.

Post Post the the and and Housing Housing reallocated reallocated was was Douglas Douglas 1974, 1974, in in death death

Kirk's Kirk's Minister Minister Prime Prime following following reshuffle reshuffle cabinet cabinet the the In In

contro1'.5 contro1'.5

'self­ and and 'self-government' 'self-government' was was emphasised emphasised was was what what time, time, the the

at at stated stated Broadcasting Broadcasting on on Committee Committee the the As As council. council. broadcasting broadcasting

central central a a under under - radio radio and and TV2, TV2, TVl, TVl, - enterprises enterprises owned owned

state­ competing competing separate separate three three into into Corporation Broadcasting Broadcasting

Zealand Zealand New New old old the the of of division division the the was was Broadcasting Broadcasting of of Minister Minister

as as achievement achievement main main Douglas's Douglas's other."4 other."4 any any like like business business a a was was

this this broadcasting; broadcasting; of of role role educational educational or or social social the the of of consideration consideration

any any of of mention mention "no "no made made he he observed observed Collins Collins As As department. department.

his his to to efficiency efficiency business business Carpets-inspired Carpets-inspired Bremworth Bremworth

his his applying applying by by it it of of most most the the make make to to endeavoured endeavoured Douglas Douglas

sought, sought, openly openly never never had had he he portfolio portfolio a a with with Lumbered Lumbered

administration. administration. Kirk Kirk new new the the

under under Broadcasting Broadcasting of of Minister Minister became became 34, 34, of of age age the the at at Douglas, Douglas,

wilderness. wilderness. political political the the in in years years twelve twelve after after benches benches Treasury Treasury

the the to to Labour Labour of of return return the the witnessed witnessed finally finally 1972 1972

benefits. benefits. welfare welfare Labour Labour traditional traditional from from break break maJor maJor

a a was was This This employers. employers. and and employees employees from from contributions contributions on on based based

scheme scheme superannuation superannuation new new a a suggested suggested Douglas Douglas investigations investigations

these these of of result result a a As As superannuation. superannuation. also also and and taxation, taxation, of of policies policies

Community, Community, Economic Economic European European the the into into entry entry British British the the of of face face

the the in in exports exports new new developing developing of of methods methods into into looked looked committee committee

This This committee. committee. economic economic caucus caucus Labour Labour the the chair chair to to was was

parliament parliament in in jobs jobs frrst frrst Douglas's Douglas's of of One One 800. 800. of of majority majority marginal marginal

fairly fairly a a with with it it winning winning Manukau, Manukau, of of seat seat redrawn redrawn the the for for

successfully successfully stood stood Douglas Douglas Election, Election, General General 1969 1969 the the In In 8 8

p.74 p.74 Metro Metro Roger Roger 8 8

p.22-23 p.22-23 Properity Properity Toward Toward Douglas Douglas 7 7

72 72 p. p. 1982 1982 August August

Metro Metro Quigley Quigley Labour's Labour's Accountant, Accountant, Labour's Labour's Douglas: Douglas: Roger Roger W.Roger W.Roger 6 6

gone gone had had Douglas Douglas document, document, Youth Youth the the to to prior prior year year A A

people. people. all all to to n8 n8 things things

all all be be cannot cannot it it that that ones, ones, stupid stupid some some advocating advocating by by policies policies good good

its its of of credibility credibility the the destroys destroys it it manager, manager, economic economic efficient efficient an an be be

can can it it that that electorate electorate the the convince convince to to failed failed has has it it strategy, strategy, term term

long long no no has has it it for, for, stands stands it it what what knows knows longer longer no no it it direction, direction,

its its lost lost .has .has Party Party "The "The wrote: wrote: Roger Roger Warwick Warwick Party, Party, Labour Labour

the the toward toward mood mood Douglas's Douglas's up up Summing Summing ...... term term "7 "7 short short the the in in

least least at at opportunities, opportunities, or or living living of of standard standard real real their their in in cut cut a a take take

groups groups some some that that require require will will problems problems Zealand's Zealand's New New to to solution solution

the the that that stating stating from from shrink shrink not not should should Labour Labour choices. choices. hard hard the the

make make to to prepared prepared is is it it that that electorate electorate the the convince convince must must Labour Labour

credibility credibility gain gain To To ...... don't) don't) one, one, for for (1, (1, policies policies its its on on deliver deliver

can can Labour Labour that that believe believe Few Few anything. anything. you you promise promise will will that that party party

a a of of is is image image "Labour's "Labour's began: began: It It Vote. Vote. Youth Youth the the and and Strategy Strategy

Election Election entitled entitled document document a a tabled tabled quickly quickly Douglas Douglas opportunity, opportunity,

the the upon upon Seizing Seizing voters. voters. young young towards towards policy policy its its formulating formulating

of of task task the the him him assigned assigned hierarchy hierarchy Party Party the the restlessness, restlessness,

growmg growmg Douglas's Douglas's Sensing Sensing Rowling. Rowling. Bill Bill of of leadership leadership the the under under

taking taking was was Party Party Labour Labour the the direction direction the the question question to to began began

He He spokesperson. spokesperson. transport transport shadow shadow as as role role his his in in uncomfortable uncomfortable

increasingly increasingly became became Douglas Douglas approached approached 1980s 1980s the the As As

office. office. opposition's opposition's the the of of leader leader the the to to seconded seconded officials officials Treasury Treasury

the the of of use use made made also also Douglas Douglas Discontinuity. Discontinuity. Of Of Age Age Drucker's Drucker's

Peter Peter like like books books reading reading and and unit, unit, research research parliamentary parliamentary

Labour's Labour's in in those those like like experts experts consulting consulting theory, theory, economic economic

of of regimen regimen strict strict a a to to himself himself committed committed Douglas Douglas defeat, defeat, landslide landslide

5 5 197 197 the the after after again again opposition opposition 1n 1n himself himself Finding Finding

built".6 built".6 be be should should 9 9

1982-84 1982-84 Plan Plan Strategic Strategic Party Party Labour Labour NZ NZ R.Douglas R.Douglas see see 9 9

a a underwent underwent Zealand Zealand New New years years three three than than less less of of space space

the the In In history. history. Zealand's Zealand's New New in in changes changes tumultuous tumultuous most most the the

of of some some over over presided presided Douglas Douglas that that position position that that in in was was It It

year. year. same same that that Finance Finance of of Minister Minister the the became became subsequently subsequently

and and election election Snap Snap 1984 1984 the the through through position position that that in in remained remained

Douglas Douglas Lange, Lange, of of leadership leadership new new the the under under spokesperson spokesperson Finance Finance

shadow shadow of of position position the the to to 1983 1983 February February in in Elevated Elevated

Lange. Lange. David David and and Palmer, Palmer, Geoffrey Geoffrey Caygill, Caygill, David David Prebble, Prebble,

Richard Richard like like colleagues colleagues cabinet cabinet shadow shadow of of thinking thinking economic economic the the

influenced influenced strongly strongly there there from from and and bench bench front front the the to to returned returned

Douglas Douglas 1982 1982 February February In In economy economy .9 .9 the the of of decentralisation decentralisation

maximum maximum and and growth growth export-led export-led emphasised emphasised which which 1982 1982 of of

meeting meeting caucus caucus Party Party Labour Labour first first the the at at 1984 1984 for for plan' plan' 'strategic 'strategic

page page 30 30 a a tabled tabled Douglas Douglas reinvigorated reinvigorated a a 1984, 1984, m m victory victory

Labour Labour a a for for on on stay stay to to electorate electorate his his promising promising After After

Finance. Finance. of of Minister Minister

future future the the as as him him in in confidence confidence his his of of him him reassured reassured Lange Lange until until -

altogether altogether politics politics quitting quitting considered considered seriously seriously Douglas Douglas that that time time

this this at at was was it it and and Party Party Labour Labour the the towards towards frustration frustration deepened deepened

his his in in resulted resulted This This Lange. Lange. David David deputy, deputy, his his with with Rowling Rowling replace replace

to to engineered engineered coup coup leadership leadership failed failed the the in in involved involved became became

Douglas Douglas however however after after long long Not Not 81. 81. 19 19 May May in in spokesperson spokesperson

Industry Industry and and Trade Trade as as cabinet cabinet shadow shadow the the to to reinstated reinstated

was was Douglas Douglas backbenches backbenches the the on on time' time' 'serving 'serving After After

Problems. Problems. Major Major Zealand's Zealand's New New Solving Solving To To

ABC ABC Practical Practical A A Way! Way! Better Better A A Be Be To To Got Got There's There's booklet booklet his his with with

Budget Budget Alternative Alternative his his up up followed followed he he later later months months Some Some cabinet. cabinet.

shadow shadow Labour's Labour's from from expulsion expulsion immediate immediate an an with with efforts efforts · ·

his his for for rewarded rewarded was was Douglas Douglas colleagues. colleagues. caucus caucus his his informing informing

without without own own his his with with Budget Budget annual annual Muldoon's Muldoon's preempting preempting

by by policy policy Economic Economic Labour Labour of of rejection rejection biggest biggest his his with with public public 10 10

those those not not make make to to aim aim should should provided provided assistance assistance

the the of of most most that that principle principle the the on on based based achieve, achieve,

to to want want and and of of capable capable are are they they level level the the reach reach

to to people people allows allows that that system system welfare welfare social social - a a -

work; work; can can who who everyone everyone for for job job - a a -

income; income; of of regardless regardless services, services, health health good good and and

education education adequate adequate an an of of opportunity opportunity the the to to access access -

living; living; of of standard standard reasonable reasonable - a a -

today: today: Government Government Labour Labour and and Party Party Labour Labour the the of of goals goals

social social same same the the are are Government Government Labour Labour first first that that of of goals goals social social

'The 'The 1935-49. 1935-49. Government Government Labour Labour first first the the by by set set those those from from

differ differ way way no no in in set set has has he he goals goals the the that that stress stress to to pains pains great great at at

is is Douglas Douglas Rogernomics? Rogernomics? of of objectives objectives the the are are exactly exactly What What

Objectives Objectives

Palmer. Palmer. Geoffrey Geoffrey of of leadership leadership

new new the the under under 1989 1989 August August m m Immigration Immigration and and Police Police of of Minister Minister

as as Cabinet Cabinet to to return return his his to to led led eventually eventually which which colleagues colleagues

cabinet cabinet and and caucus caucus many many among among following following high high a a maintained maintained

Douglas Douglas party, party, Labour Labour extra-parliamentary extra-parliamentary the the with with popular popular

not not Although Although work. work. to to incentives incentives improve improve to to reform reform benefit benefit

and and tax tax more more and and agencies, agencies, sector sector private private through through provision provision allow allow

to to services services social social of of deregulation reform, reform, market market labour labour as as such such

ideas ideas advocate advocate to to continued continued Douglas Douglas backbenches, backbenches, the the On On

reason. reason. the the as as

Lange Lange with with differences differences irreconcilable irreconcilable citing citing 1988 1988 late late in in Cabinet Cabinet

from from resigned resigned Douglas Douglas two, two, the the between between hostilities hostilities increased increased and and

tax tax flat flat a a of of proposal proposal Douglas's Douglas's of of scuttling scuttling the the After After economics. economics.

market-oriented market-oriented of of pursuance pursuance continued continued Douglas's Douglas's by by wrought wrought

upheaval upheaval social social the the from from himself himself distance distance to to sought sought Lange Lange as as

sour sour publicly publicly turned turned Douglas Douglas and and Lange Lange Minister Minister Prime Prime between between

relations relations 1987, 1987, in in reelection reelection Labour's Labour's after after soon soon However, However,

institutions. institutions. social social and and

economic, economic, political, political, its its changed changed irreversibly irreversibly that that metamorphosis metamorphosis 11 11

p.241-242 p.241-242 11 11 lbid lbid

p.236 p.236 Prosperity Prosperity Toward Toward Douglas Douglas 10 10

1990s 1990s the the in in concentrate concentrate to to able able be be Government Government the the will will economy economy

the the overhauling overhauling after after Only Only economy. economy. Zealand Zealand New New the the of of state state

abysmal abysmal the the rectifying rectifying first first without without dream dream pipe pipe mere mere a a is is society society

just just and and fairer fairer a a of of goal goal final final the the Douglas Douglas For For luxury. luxury. that that have have yet yet

not not does does Government Government Labour Labour current current The The 1936-39. 1936-39. years years the the in in

surpluses surpluses budget budget ran ran Government Government Labour Labour first first the the all, all, for for fairness fairness

and and equity equity social social of of goals goals cherished cherished its its of of pursuit pursuit In In

traditionalism.ll traditionalism.ll not not innovation, innovation, was was it it legacy, legacy,

a a us us left left Savage Savage and and Nash Nash like like men men ...... If If immemorial immemorial

time time for for enshrined enshrined become become to to was was 1930s 1930s the the of of problems problems

the the solving solving about about went went they they way way the the that that thought thought they they

if if gratified, gratified, not not appalled, appalled, been been have have would would state] state] welfare welfare

[the [the established established who who women women and and men men the the future. future. the the

in in work work automatically automatically not not does does past past the the in in worked worked What What

on. on. years years

50 50 form form same same the the exactly exactly in in intact intact still still was was state state welfare welfare 'their' 'their'

that that knew knew they they if if graves graves their their in in turning turning be be would would they they implying implying

Savage, Savage, Michael Michael and and Nash Nash Waiter Waiter as as such such Government Government Labour Labour first first

the the of of stalwards stalwards certain certain of of memory memory the the reviving reviving by by critics critics his his as as

tactics tactics same same the the uses uses Douglas Douglas argument, argument, his his reinforce reinforce To To

needs. needs. now now Zealand Zealand New New what what is is claimed, claimed, is is it it goals, goals, same same

these these to to route route new new A A now. now. well well work work possibly possibly not not could could but but then then

well well worked worked policies policies Those Those 1990s. 1990s. and and 1980s 1980s the the in in affairs affairs of of state state

the the to to relevance relevance no no hold hold simply simply 1930s 1930s the the of of policies policies The The changed. changed.

have have enshrined enshrined first first were were goals goals these these which which in in circumstances circumstances

the the goals, goals, its its changed changed not not has has Party Party Labour Labour the the Although Although

0 0 fulfillment.' fulfillment.' 1

self self for for opportunities opportunities people people gives gives which which society society - a a -

support; support; self self to to way way the the open open to to rather rather

but but assistance assistance that that on on dependent dependent it it receive receive who who 12 12

is is it it Again Again debt. debt. public public the the to to adds· adds· which which balance balance the the up up make make

to to borrowed borrowed be be must must money money spending) spending) and and revenue revenue between between

shortfall shortfall (the (the deficit deficit a a produces produces Government Government the the time time Every Every

balanced. balanced. budget budget the the and and halted halted be be must must deficits deficits budget budget of of run run

continuous continuous the the that that adamant adamant is is Douglas Douglas time time same same the the At At

principal. principal. the the of of any any reducing reducing actually actually without without debt debt

total total the the on on payments payments interest interest making making i.e. i.e. debt debt the the servicing servicing by by

merely merely up up swallowed swallowed being being was was expenditure expenditure total total Government's Government's

the the of of cent cent per per 19.5 19.5 that that meant meant This This product. product. domestic domestic

gross gross Zealand's Zealand's New New of of cent cent per per 85 85 about about billion, or or billion, $45 $45 at at

stood stood debt debt this this writing, writing, was was Douglas Douglas the time time the At At it. it. reducing reducing start start

to to taken taken be be action action that that and and increase increase not not does does debt debt public public the the that that

imperative imperative therefore therefore is is It It 1930s. 1930s. the the in in established established state state welfare welfare

of of type type the the maintain maintain possibly possibly cannot cannot Government Government the the debt, debt,

public public large large a a such such by by burdened burdened 1s 1s Zealand Zealand New New Because Because

State State Profit-making Profit-making The The

state. state.

neutral neutral the the and and flexibility; flexibility; market market labour labour resources; resources; of of reallocation reallocation

the the reform; reform; tax tax deregulation; deregulation; . . competition; competition; overseas overseas to to economy economy the the

of of up up opening opening the the ; inflation; against against fight fight the the State; State; profit-making profit-making

a a of of establishment establishment the the format: format: 8-point 8-point an an contains contains framework framework

Collins Collins The The objectives. objectives. stated stated his his achieve achieve to to order order in in head head

its its on on economy economy Zealand Zealand New New the the turning turning about about set set has has Douglas Douglas

how how see see will will we we Way?' Way?' Better Better A A There There Is Is 'Rogernomics. 'Rogernomics. in in Collins Collins

Simon Simon by by established established framework framework the the within within Working Working achieved? achieved?

be be to to it it is is how how then, then, answer answer the the is is growth growth economic economic If If

Roger Roger To To According According Rogernomics Rogernomics

politics'. politics'.

before before country country 'put 'put must must people people task task this this with with accordance accordance in in

and and issues, issues, other other all all before before come come will will goals goals above above the the of of pursuance pursuance

the the implies implies Douglas Douglas objectives. objectives. social social fundamental fundamental its its on on 13 13

!.1lli! !.1lli! p.238 p.238 12 12

------

expenditure, expenditure, Government's Government's [sic] [sic] between between balance balance

right right the the getting getting start start to to able able be be should should we we on on now now From From

decade. decade. last last the the in in time time any any at at than than GDP GDP of of percentage percentage

a a as as level level lower lower a a at at remains remains deficit deficit Budget Budget the the

that that achievements achievements major major Government's Government's the the of of one one is is It It

states: states: optimistically optimistically

Douglas Douglas but but year, year, financial financial 1987-88 1987-88 the the in in taxpayers taxpayers Zealand Zealand

New New hit hit only only legacy legacy debt debt National's National's of of repercussions repercussions The The

million. million.

$90 $90 of of tune tune the the to to Railways, Railways, the the example, example, for for services, services, state state out out

bail bail to to have have longer longer no no would would Government Government the the means means Government Government

the the for for profit profit a a produce produce which which enterprises enterprises state-owned state-owned

independent independent to to managers') managers') 'lousy 'lousy make make (politicians (politicians management management

state state from from away away institutions institutions public public of of restructuring restructuring The The

1986. 1986. in in Act Act SOEs SOEs the the of of passage passage

the the through through (SOEs) (SOEs) Enterprises Enterprises Owned Owned State State into into sector sector public public

the the of of areas areas certain certain of of restructuring restructuring the the been been has has policy policy this this of of

outcome outcome obvious obvious The The services. services. of of cost cost full full the the 'users' 'users' charge charge would would

who who managers managers non-political non-political to to over over handed handed be be should should services services

basic basic Some Some public. public. the the to to costs costs reduced reduced at at available available services services

all all make make to to afford afford longer longer no no can can Government Government the the says says Douglas Douglas

budget. budget. the the balance balance eventually eventually and and deficits deficits the the reduce reduce help help to to

costs costs sufficient sufficient recover recover to to able able be be would would Government Government the the ventures ventures

profit-making profit-making into into services services state state some some turning turning By By

unemployment. unemployment. higher higher therefore therefore and and jobs jobs less less creates creates turn turn

in in which which sector sector private private the the in in investment investment reduce reduce help help also also They They

incomes. incomes. low low on on people people especially especially and and mortgages mortgages home home affect affect rates rates

interest interest High High .

rates' rates' interest interest 2 2 high high continuing continuing mean mean would would debt debt 1

that that escalate escalate that that deficits deficits Budget Budget run run to to continue continue 'To 'To objectives. objectives.

Douglas's Douglas's in in implicit implicit are are that that sercives' sercives' health health good good and and education education

'adequate 'adequate the the afford afford not not can can Government Government the the surplus, surplus, into into run run to to

starts starts budget budget the the Until Until problem. problem. economic economic as as well well as as social social serious serious

a a is is debt debt this this as as trend trend this this reverse reverse and and control control to to Douglas Douglas to to vital vital 14 14

p.87 p.87 lbid lbid 16 16

p.224 p.224 Ibid Ibid 15 15

p.223 p.223 Ibid Ibid 14 14

p.222 p.222 Ibid Ibid 13 13

share. major major 6 6 1

the the use use which which industries industries and and businesses businesses the the supporting supporting

are are consumers consumers those those subsidised subsidised are are prices prices electricity electricity

used. used. If If electricity electricity the the of of cent cent per per 30 30 only only consume consume

yet yet collected collected tax tax all all of of cent cent per per 70 70 contribute contribute tax tax income income

pay pay who who people people The The benefit. benefit. greatest greatest the the yield yield decisions decisions

employment employment and and investment investment that that ensure ensure we we can can priced priced

realistically realistically are are resources resources if if Only Only ...... need need in in most most those those

to to confined confined not not are are electricity electricity cheap cheap of of benefits benefits the the

because because groups groups income income low low helping helping of of means means inefficient inefficient

an an is is supply supply of of cost cost the the below below prices prices electricity electricity Keeping Keeping

them. them. supply supply and and produce produce

to to cost cost it it what what reflected reflected they they until until increase increase to to were were electricity, electricity, and and

coal coal timber, timber, state state for for example, example, for for Prices Prices way. way. commercial commercial normal normal

a a in in operate operate to to departments departments government government several several of of side side trading trading

the the get get to to moves moves first first the the introduced introduced Budget Budget 1984 1984 The The

.15 .15 reform' reform' of of need need

m m 'urgently 'urgently was was which which sector' sector' public public the the to to extended extended be be to to needed needed

emphasis emphasis 'That 'That operate. operate. to to which which in in framework framework new new a a given given been been

had had sector sector private private the the of of area area Every Every viable. viable. economically economically more more

them them make make to to departments departments government government for for competition competition increased increased

was was

answer answer His His '. areas areas welfare welfare social social the the in in spending spending cut cut 14 14

to to pressure pressure be be would would there there not, not, did did we we goals. goals. social social 'If 'If his his achieve achieve

to to able able be be not not would would he he reforms reforms economic economic his his out out carry carry and and deficit deficit

the the lower lower to to failed failed Douglas Douglas if if earlier, earlier, stated stated As As deficit. deficit. Budget Budget

the the in in reduction reduction permanent permanent a a make make to to needed needed it it that that knowing knowing

spending spending Government Government revtew revtew to to undertook undertook Cabinet Cabinet

surprises.1 surprises.1 3 3 unpleasant unpleasant further further by by unhindered unhindered

economy, economy, expanding expanding an an build build to to debt debt and and revenue revenue 15 15

p.ll8 p.ll8 Rogernomics. Rogernomics. Collins Collins 18 18

p.239 p.239 Ibid Ibid 17 17

wished wished Douglas Douglas 'fortress 'fortress economy'~ economy'~ a a as as situation situation the the characterised characterised

Collins Collins world. world. the the in in protected protected most most the the of of one one as as 1984 1984 before before

economy economy Zealand Zealand New New the the describe describe to to nowadays nowadays economists economists

and and politicians politicians Labour Labour among among preserve preserve common common the the is is It It

Economy Economy The The Up Up Opening Opening

.18 .18 goods' goods' few few too too chasing chasing money money much much too too

by by caused caused being being as as seen seen is is 'inflation 'inflation it, it, describes describes aptly aptly Collins Collins As As

money. money. of of supply supply the the on on control control strict strict a a entails entails which which monetarism

is is inflation inflation against against war war the the m m weapon weapon chief chief Douglas's Douglas's

elusive. elusive. more more even even

prove prove above above listed listed goals goals Douglas's Douglas's inflation, inflation, in in hike hike every every With With

levels. levels. previous previous the the at at spending spending government government maintain maintain to to battle battle

interminable interminable an an fights fights Government Government the the as as goals goals social social on on effect effect

direct direct a a has has also also inflation inflation but but effects, effects, negative negative indirect indirect are are These These

Zealand.17 Zealand.17 New New left left have have who who people people skilled skilled

of of numbers numbers substantial substantial already already the the in in rise rise a a be be would would

there there and and country country the the from from money money withdraw withdraw would would

investors investors Overseas Overseas roof. roof. the the through through go go would would debt debt

our our servicing servicing of of cost cost The The Government. Government. the the to to money money

lend lend who who those those particularly particularly Zealand, Zealand, New New in in investors investors

international international away away scare scare would would This This deficits. deficits. high high

run run to to continued continued we we if if happen happen could could that that rate rate exchange exchange

the the of of collapse collapse associated associated and and economy economy the the in in confidence confidence

of of loss loss a a was was there there if if affected affected be be also also would would Jobs Jobs

jobs. jobs. increase increase to to potential potential

its its reduces reduces therefore therefore which which ravaged ravaged severely severely is is sector sector export export

the the while while evaporated evaporated quickly quickly are are savings savings fixed fixed in in investment investment

and and insurance insurance life life of of benefits benefits The The earners. earners. income income low low and and home, home,

at at women women incomes, incomes, fixed fixed on on people people those those hardest hardest hits hits inflation inflation

High High evil. evil. one one number number the the as as inflation inflation lists lists Douglas Douglas

Inflation Inflation Fighting Fighting 16 16

p.l42 p.l42 Ibid Ibid 20 20

p.141 p.141 Prosperity Prosperity Toward Toward Douglas Douglas 19 19

enacted enacted Government Government the the 1984 1984 December December early early From From

buyers. buyers. overseas overseas

of of demand demand and and supply supply of of forces forces the the from from insulated insulated be be would would

supply supply money money the the floating, floating, By By currency currency .20 .20 foreign foreign purchase purchase

to to dollars dollars Zealand Zealand New New use use to to dealer dealer exchange exchange licensed licensed any any

allow allow would would Floating Floating currency. currency. foreign foreign sell sell and and buy buy to to institution institution

only only the the be be longer longer no no would would Bank Bank Reserve Reserve the the that that so so dollar' dollar' 19 19

Zealand Zealand New New the the float float to to was was step step logical logical only only 'The 'The investors. investors.

overseas overseas by by demanded demanded was was it it more more the the issued issued Government Government

the the stock stock more more The The up. up. went went rates rates interest interest domestic domestic as as dollars dollars

Kiwi for for demand demand increasing increasing an an was was there there 1984 1984 October October By By

investment. investment. foreign foreign to to obstacles obstacles

and and tariffs, tariffs, licensing, licensing, import import controls, controls, exchange exchange - fortress' fortress'

'four-walled 'four-walled the the raze raze to to set set was was stage stage the the Thus, Thus, producers. producers.

domestic domestic protected protected traditionally traditionally had had that that barriers barriers existing existing

the the abolish abolish to to needed needed he he opportunity opportunity the the Douglas Douglas gave gave turn turn

in in This This competition. competition. overseas overseas from from manufacturers manufacturers Zealand Zealand New New

protecting protecting thus thus buyers) buyers) foreign foreign to to attractive attractive more more much much products products

Zealand Zealand New New making making decreased decreased also also prices prices (export (export increased increased

imports imports of of price price the the result result a a As As cent. cent. per per 20 20 by by devalued devalued

Douglas Douglas dollars dollars Kiwi Kiwi of of outflow outflow the the stem stem to to effort effort an an In In rapidly. rapidly.

more more reforms reforms economic economic planned planned its its introduce introduce to to opportunity opportunity

an an with with Government Government Labour Labour new new the the and and Douglas Douglas presented presented

had had crisis crisis exchange exchange foreign foreign the the of of extremity extremity The The

reserves. reserves. overseas overseas Zealand's Zealand's New New of of dwindling dwindling

rapid rapid a a and and funds funds valuable valuable of of outflow outflow massive massive a a caused caused

Election Election Snap Snap 1984 1984 the the of of announcement announcement the the after after devaluation devaluation

a a of of speculation speculation the the by by on on brought brought dollar dollar the the on on run run The The

Rogernomics. Rogernomics.

of of objectives objectives the the fund fund to to required required surplus surplus the the create create turn turn in in would would

which which growth growth export-led export-led an an achieving achieving and and competition competition overseas overseas

to to economy economy Zealand Zealand New New the the up up opening opening by by situation situation this this alter alter to to 17 17

p.144 p.144 lbid lbid 23 23

lbid lbid 22 22

p.l43 p.l43 Ibid Ibid 21 21

banking banking improve improve thus thus and and competition competition increase increase to to Zealand Zealand New New

enter enter to to Banks Banks new new for for given given also also was was Approval Approval loans. loans. to to access access

better better had had borrowers borrowers that that meant meant This This Ratio). Ratio). Assets Assets Reserve Reserve

the the (called (called securities securities sector sector public public other other and and stock stock Government Government of of

levels levels stipulated stipulated in in invest invest to to institutions institutions financial financial requiring requiring ratios ratios

of of removal removal the the included included taken taken steps steps pre-float pre-float final final The The

markets. markets.

foreign foreign in in Japan Japan for for did did Toyota Toyota or or States States United United the the for for did did IBM IBM

what what Zealand Zealand New New for for do do to to Challenge Challenge Fletcher Fletcher for for potential potential the the

sees sees He He Steinlager.'23 Steinlager.'23 less less sell sell to to Australia Australia in in outlets outlets 100 100 to to 50 50

buy buy not not 'did 'did who who Breweries Breweries NZ NZ cites cites he he example example an an As As . companies.

foreign foreign boost boost to to overseas overseas money money send send not not do do companies companies that that

states states emphatically emphatically Douglas Douglas

Zealand.2 New New for for earnings' earnings' invisible invisible 2 2

of of amount amount 'enormous 'enormous an an win win could could they they Where Where expertise'. expertise'.

particular particular their their use use could could they they 'where 'where Americas Americas the the and and Canada, Canada,

Australia, Australia, in in operations operations to to turn turn and and operations operations 'non-essential' 'non-essential'

their their shedding shedding begin begin could could companies companies Major Major horizons.'21 horizons.'21 their their

broaden broaden to to and and looking looking outward outward more more much much become become to to people people

business business Zealand Zealand New New enabled enabled what what was was It It made. made. we we decisions decisions

important important most most four four or or three three the the of of one one was was 'It 'It transactions. transactions.

exchange exchange foreign foreign of of movement movement inward inward and and outward outward the the limited limited

which which removed removed were were controls controls exchange exchange step, step, pre-float pre-float significant significant

most most the the as as signals signals Douglas Douglas what what in in December, December, In In

market. market.

capital capital Zealand Zealand New New the the to to access access unrestricted unrestricted companies companies owned owned

foreign­ gave gave and and overseas overseas borrowing borrowing from from institutions institutions financial financial

Zealand Zealand New New prohibited prohibited which which abolished abolished were were Restrictions Restrictions

banks. banks. between between rates rates Singapore Singapore and and London London the the above above cent cent per per

than than 2 2 greater greater not not rate rate interest interest an an to to and and months, months, twelve twelve least least at at

of of term term fixed fixed a a to to borrowing borrowing overseas overseas private private limited limited previously previously

which which eliminated eliminated were were float. Rules Rules float. the the for for prepare prepare to to measures measures 18 18

p.178 p.178 Ibid Ibid 24 24

Muldoon Muldoon ·. ·. by by attempts attempts hesitant hesitant the the that that argues argues He He dramatic. dramatic. looked looked

deregulation deregulation speedy speedy that that background background regulated regulated prevtous prevtous the the to to

relation relation in in only only was was it it that that states states Douglas Douglas quickly, quickly, too too far far pursued pursued

been been had had deregulation deregulation claim claim who who critics critics his his to to answer answer In In

expected. expected. than than

earlier earlier much much deregulation deregulation of of programme programme planned planned his his institute institute

to to Douglas Douglas allowing allowing crescendo, crescendo, a a to to up up built built had had deregulate deregulate

to to momentum momentum the the crisis crisis exchange exchange foreign foreign the the of of Because Because

order. order. an an such such

to to accrue accrue would would that that benefits benefits the the by by afforded afforded goals goals social social the the to to

way way the the pave pave would would that that economy economy dynamic dynamic and and productive productive highly highly

the the create create to to hoped hoped Douglas Douglas this this Through Through services. services. and and goods goods

of of value value real real the the dictate dictate to to was was market market the the now now intervention, intervention,

governmental governmental by by 'distorted' 'distorted' been been had had pnces pnces prevtous prevtous

Where Where market'. market'. the the of of 'logic 'logic the the by by set set were were services services and and goods goods

for for prices prices forward forward Hence Hence Government. Government. Labour Labour fourth fourth the the under under

deregulated deregulated most most the the of of one one to to world world the the in in economies economies regulated regulated

most most the the of of one one being being from from gone gone has has Zealand Zealand New New

Deregulation Deregulation

licensing. licensing.

import import of of removal removal eventual eventual the the after after market market domestic domestic the the

to to access access improved improved have have would would goods goods imported imported and and period period year year

three three a a over over eliminated eliminated gradually gradually be be to to were were incentives incentives export export

that that announced announced been been had had it it 1984 1984 August August In In pleased. pleased. they they . . '24 '24

anything anything almost almost farmers farmers charge charge to to able able been been had had manufacturers manufacturers

and and industry industry urban urban for for privileges privileges monopoly monopoly created created

had had tariffs tariffs high high and and licensing licensing 'Import 'Import nil. nil. to to reduced reduced goods were were goods

produced produced Zealand Zealand non-New non-New on on tariffs tariffs All All economy. economy. the the within within

costs costs reduce reduce to to programme programme Government Government the the of of part part was was sector, sector,

agricultural agricultural the the in in especially especially incentives, incentives, past past Removing Removing

consumers. consumers. to to costs costs lower lower and and services services 19 19

p.145 p.145 Properity Properity Toward Toward Douglas Douglas 27 27

p.52 p.52 Rogernomics Rogernomics Collins Collins 26 26

Thid. Thid. p.138 p.138 25 25

market market regulated regulated a a well in in well exceptionally exceptionally done done had had previously previously

which which companies companies finance finance and and banks banks merchant merchant on on pressure pressure

greater greater placed placed immediately immediately this this claimed claimed Douglas Douglas removed. removed. were were

days days 30 30 than than less less for for them them with with placed placed deposits deposits have have to to them them

allow allow not not did did which which banks banks trading trading on on Restrictions Restrictions ended. ended. was was

competition, competition, any any from from protected protected completely completely were were who who dealers, dealers,

market market money money short-term short-term official official four four the the of of status status special special The The

deregulation. deregulation. for for targeted targeted also also was was sector sector banking banking The The

demand.'2 demand.'2 and and 7 7 supply supply of of forces forces the the by by

determined determined were were rate rate exchange exchange the the and and rates rates interest interest both both until until

continue continue to to had had [he] [he] started started once once that that 'knew 'knew He He 'consistent'. 'consistent'. also also

was was because because it it but but 'easy' 'easy' was was it it because because only only not not deregulation deregulation the the

through through pushing pushing kept kept Douglas Douglas election.•26 election.•26 the the before before weeks weeks the the in in

country country the the of of out out flowed flowed had had that that money money the the all all back back 'attract 'attract to to

devaluation devaluation the the as as time time same same the the at at lifted lifted also also were were controls controls rate rate

Interest Interest situation. situation. economic economic the the appraise appraise fully fully to to order order in in victory victory

electoral electoral Government's Government's Labour Labour the the after after months months three three further further

a a for for extended extended been been had had which which freeze, freeze, price price and and wage, wage, rent, rent,

Muldoon Muldoon the the was was deregulated deregulated be be to to things things first first the the of of One One

it.25 it.25 implement implement

to to policies policies appropriate appropriate adopt adopt and and change change rapid rapid

more more for for need need the the accept accept should should we we view view my my in in So, So,

unemployment. unemployment. high high relatively relatively and and deficits deficits ·payments ·payments

of of balance balance persistent persistent inflation, inflation, sustained sustained of of ·periods ·periods

growth, growth, low low high: high: been been have have costs costs The The approach. approach.

gradualism gradualism the the favoured favoured and and change change for for need need

the the accept accept to to reluctant reluctant been been have have we we people people a a as as ......

Russell: Russell: Spencer Spencer Sir Sir Bank, Bank, Reserve Reserve the the of of Governor Governor respected respected

the the by by speech speech a a from from quotes quotes Douglas Douglas argument argument his his reinforce reinforce

further further To To sector. sector. financial financial the the reforming reforming when when slowly slowly move move to to

impossible, impossible, not not if if difficult, difficult, extremely extremely was was that that it it proved proved 1976 1976 m m 20 20

p.189 p.189 Ibid Ibid 31 31

p.141 p.141 lbid lbid 30 30

p.140-41 p.140-41 lbid lbid 29 29

p.139 p.139 lbid lbid 28 28

central central the the that that declares declares objectives. Douglas Douglas objectives. social social with with linked linked

inevitably inevitably being being as as economy economy the the viewed viewed Douglas Douglas because because 1984 1984

of of changes changes economic economic the the of of centre centre the the at at was was reform reform Tax Tax

Reform Reform Tax Tax

•3 •3 functions. functions. commercial commercial 1 1 their their from from separated separated

clearly clearly be be to to needed needed farmers farmers to to assistance assistance in in involvement involvement

boards' boards' The The producers. producers. to to services services other other and and activities activities marketing marketing

and and export export their their out out carrying carrying and and finances finances their their managing managing

in in commercially commercially more more act act to to boards boards product?r product?r the the get get to to was was object object

'Our 'Our fields. fields. respective respective their their in in activities activities their their restructure restructure to to them them

encourage encourage to to threatened, threatened, not not were were monopolies monopolies their their although although

deregulated, deregulated, were were boards boards producer producer agricultural agricultural Finally, Finally,

is.'3 is.'3 it it as as 0 0

desperate desperate as as not not is is situation situation the the pretend pretend than than right right fundamentals fundamentals

the the get get to to 'better 'better sometime, sometime, for for paid paid be be to to has has by by overspend overspend

Zealanders Zealanders New New amount amount the the for for up up make make to to made made Government Government

the the loans loans The The •2 •2 grandchildren. grandchildren. and and 9 9 children children their their to to on on

burden burden the the of of less less pass pass and and overspent overspent they they which which by by amount amount the the

for for more more pay pay would would income, income, their their than than more more far far spending spending were were

who who generation, generation, this this of of Zealanders Zealanders New New that that 'ensured 'ensured least least at at it it

but but discouraged, discouraged, was was money money for for demand demand excessive excessive until the the until rates rates

interest interest higher higher in in result result would would this this Douglas Douglas To To debt. debt. foreign foreign the the

to to added added only only which which overseas overseas borrowing borrowing by by than than rather rather locally locally

needed needed money money the the raising raising deficit, deficit, the the fund fund to to and and balance balance in in

system system financial financial the the in in money money of of amount amount the the keep keep to to programme programme

tendering tendering stock stock Government Government the the of of resurrection resurrection the the involved involved

sector sector banking banking the the m m drive drive deregulation deregulation the the of of Part Part

money•28). money•28).

print print to to license license a a was was company finance finance a a 'being 'being (previously, (previously, 21 21

p.82 p.82 Ibid Ibid 32 32

levels, levels, wage wage real real and and employment employment on on effect effect negative negative a a have have they they

him, him, to to According According taxes. taxes. high high of of enemy enemy arch arch the the is is Douglas Douglas

section). section). following following the the in in see see will will we we (as (as system system benefit benefit

the the with with wrong wrong is is what what be be to to reported reported also also is is focus focus and and cohesion cohesion

of of loss loss This This system. system. the the of of weaknesses weaknesses underlying underlying the the exploit exploit

to to people people encouraged encouraged only only This This tax. tax. after after $1.00 $1.00 earn earn to to tax tax before before

$2.97 $2.97 earn earn to to needed needed you you dollar dollar the the in in cents cents 66 66 of of rate rate a a at at where where

unsustainable, unsustainable, totally totally were were says says he he rates rates tax tax 1984 1984 The The base. base.

tax tax the the eroded eroded severely severely says says Douglas Douglas taxpayers taxpayers for for concessions concessions

numerous numerous of of introduction introduction who's who's Muldoon Muldoon of of feet feet the the at at

squarely squarely injustice injustice this this for for blaim blaim the the lays lays Douglas Douglas administration, administration,

previous previous the the needle needle to to afraid afraid Never Never income. income. national national the the of of cent cent

per per 59 59 only only earned earned who who earners earners salary salary and and wage wage by by paid paid was was

tax tax income income all all of of three-quarters three-quarters nearly nearly that that meant meant This This revenue. revenue.

tax tax all all of of cent cent per per 70 70 represented represented tax tax income income 1985 1985 In In GDP. GDP. of of cent cent

per per 40 40 for for accounted accounted expenditure expenditure Government Government 1984 1984 In In

1938. 1938. in in back back laid laid were were foundations foundations welfare welfare social social the the since since

radical radical most most the the Douglas, Douglas, to to according according is, is, and and term term parliamentary parliamentary

the the of of rest rest the the for for pattern pattern the the set set to to was was Budget Budget This This

simple. simple. and and certain certain 3 2 2 3 more more system system tax tax the the make make -

and and rates; rates; tax tax marginal marginal

lowering lowering and and base base tax tax the the widening widening concessions, concessions, and and

anomalies anomalies reducing reducing by by allocation allocation resource resource on on system system

taxation taxation the the of of impact impact distortionary distortionary the the minimise minimise -

systems systems benefit benefit

and and tax tax the the in in fairness fairness of of degree degree greater greater a a introduce introduce -

to: to: aimed aimed reforms reforms tax tax

Budgetary Budgetary 1984 1984 The The future. future. the the in in make make to to adjustments adjustments biggest biggest

the the have have would would past past the the in in most most the the benefited benefited who who those those that that

meant meant it it but but even-handed even-handed be be to to tried tried Government Government The The two-sided. two-sided.

however, however, was was fairness fairness This This fairness. fairness. and and equity equity for for desire desire the the

was was Budget Budget 1984 1984 the the m m out out laid laid reforms reforms the the behind behind philosophy philosophy 22 22

reversal reversal a a is is required required is is What What bureaucrats.'33 bureaucrats.'33 for for jobs jobs providing providing

up up ended ended has has needy needy the the help help to to out out started started 'What 'What consumers. consumers. the the

and and providers providers the the between between tension tension a a create create system system welfare welfare the the

in in incentives incentives current current The The capture'. capture'. 'institutional 'institutional as as labels labels Douglas Douglas

what what in in consumers, consumers, the the not not and and services services social social of of providers providers

the the benefit benefit to to gone gone has has money money extra extra this this All All services. services. to to access access

better better provide provide or or services services better better deliver deliver to to done done been been actually actually

has has little little although although services services social social on these these on spending spending government government

in in increase increase four-fold four-fold a a been been has has there there years years 12 12 to to 10 10 past past the the for for

when when instituted instituted first first was was it it since since track track off off badly badly gone gone has has system system

welfare welfare the the says says Douglas Douglas reforms. reforms. major major for for overdue overdue well well were were

welfare welfare social social and and education, education, health, health, as as such such areas areas Accordingly, Accordingly,

sector. sector. public public entire entire the the nearly nearly mention mention to to not not systems, systems,

welfare welfare and and taxation taxation the the effected effected badly badly and and scandalous scandalous was was

Douglas, Douglas, to to according according resources, resources, of of distribution distribution (1987) (1987) The The

Resources Resources of of Reallocation Reallocation

earners. earners. income income lower lower to to blow blow the the soften soften to to introduced introduced

also also was was package package Support Support Family Family A A it. it. avoid avoid to to unable unable be be would would

wealthy wealthy the the that that so so (GST) (GST) services services and and goods goods on on tax tax indirect indirect new new

a a introduced introduced Douglas Douglas rates, rates, tax tax low low new new the the for for pay pay To To

abroad. abroad. skills skills · · and and money money their their taken taken have have would would

workers workers and and entrepreneurs entrepreneurs Zealand Zealand New New else else or or competitors competitors

of of those those to to rates rates tax tax lower lower to to forced forced was was government government the the market market

world world the the to to economy economy the the up up opemng opemng By By more. more. earn earn to to incentives incentives

create create to to rates rates tax tax lower lower to to was was then then did did Douglas Douglas What What

loopholes. loopholes. find find to to them them encourage encourage

only only taxes taxes High High small. small. too too simply simply is is companies companies and and earners earners income income

high high of of base base money money the the time time same same the the At At it. it. afford afford least least can can who who

those those hardest hardest hits hits earners, earners, income income middle middle and and bottom bottom the the money, money,

of of sources sources aggregate aggregate largest largest the the on on tax tax increasing increasing that that states states

he he taxes, taxes, increased increased for for call call who who left left the the on on critics critics his his to to answer answer In In

Government. Government. the the for for revenue revenue of of returns returns diminishing diminishing to to lead lead and and 23 23

p.245 p.245 lbid lbid 34 34

p.194 p.194 lbid lbid 33 33

5 5 students.•3 students.•3

the the than than important important more more become become have have relativities relativities pay pay and and tenure tenure

of of 'Security 'Security qualifications. qualifications. certain certain on on places places market market employment employment

the the value value the the recognises recognises adequately adequately that that remuneration remuneration provide provide

to to failure failure system's system's the the to to due due facilities facilities and and staff staff of of shortage shortage

a a by by exasperated exasperated is is pressure pressure this this but but degrees degrees law law and and commerce commerce

for for demand demand high high a a is is there there example example For For workforce. workforce. Zealand Zealand

New New the the in in required required skills skills the the in in changes changes and and students, students, from from

demand demand in in changes changes to to response response in in resources resources in in shift shift a a is is advocates advocates

he he What What education. education. tertiary tertiary on on spent spent money money the the of of most most captured captured

has has middle-class middle-class the the that that asserts asserts Douglas Douglas education education In In

coffers. coffers. goyernment goyernment on on demands demands

any any make make not not would would it it words, words, other other In In handouts'. handouts'. on on dependent dependent

'not 'not and and commercial commercial totally totally be be to to was was It It work. work. at at economics economics

market market free free of of example example an an be be to to was was MDC MDC The The more.•3

achieve achieve 4 4

can can they they then then something, something, achieved achieved have have personally personally they they feel feel can can

people people if if ...... determination determination 'self 'self and and fulfillment' fulfillment' 'self 'self toward toward look look

people people when when achieved achieved be be can can what what of of example example shining shining a a as as (MDC) (MDC)

Corporation Corporation Development Development Maori Maori the the up up holds holds Douglas Douglas

independence. independence. financial financial toward toward people people helping helping

and and work work to to incentive incentive the the removing removing without without people people supporting supporting

is is doing doing be be should should system system the the What What State. State. the the on on dependent dependent

more more and and more more become become to to attitudes attitudes peoples peoples changed changed has has

years years the the over over system system welfare welfare social social The The trap. trap. poverty poverty a a creating creating

thus thus dole, dole, the the on on off off better better were were earners earners income income low low some some where where

point point the the to to system system benefit benefit the the and and structure structure wage wage the the of of end end

low low the the between between gap gap the the compressing compressing of of administration administration National National

previous previous the the accuses accuses Douglas Douglas benefits benefits welfare welfare social social On On

Rogernomics. Rogernomics. of of objectives objectives the the of of

part part were were that that fulfillment' fulfillment' 'self 'self and and support' support' 'self 'self for for opportunities opportunities

the the create create to to hoped hoped Douglas Douglas system system welfare welfare the the reforming reforming

By By people. people. and and institutions institutions between between importance importance of of order order the the of of 24 24

p.244 p.244 lbid lbid 37 37

p.242 p.242 Ibid Ibid 36 36

p.243 p.243 Ibid Ibid 35 35

too too simply simply 1s 1s base base resource resource the the as as it, it, need need who who those those all all to to out out

handed handed being being assistance assistance of of amount amount ineffective ineffective an an in in result result would would

Douglas, Douglas, says says option, option, first first the the Following Following need. need. in greatest greatest in those those to to

assistance assistance target target can can it it or or services, services, welfare welfare and and health health subsidised subsidised

heavily heavily and and free free to to access access universal universal provide provide can can Government Government

the the Either Either options. options. two two gives gives Douglas Douglas and and choice, choice, crucial crucial

a a making making requires requires base base resource resource the the on on constraint constraint The The

3 3 others'. others'. for for best best 7 7

the the do do also also you you .yourself, .yourself, for for best best the the do do you you 'When 'When where, where, system system

a a is is for for calls calls he he What What themselves. themselves. buck for for buck fastest fastest the the make make to to

wanting wanting people people of of nature nature mercenary mercenary essentially essentially the the about about bones bones

no no makes makes Douglas Douglas . . consumers consumers of of needs needs the the meet meet best best that that ways ways in in

act act to to providers providers encourage encourage to to advocated advocated also also are are Incentives Incentives staff. staff.

for for conditions conditions and and pay pay to to regard regard with with especially especially flexibility, flexibility, greater greater

is is for for called called is is What What efficient. efficient. more more system system welfare welfare the the make make

to to resources resources current current the the of of made made be be must must use use Maximum Maximum

goals. goals. social social

of of terms terms in in need need greatest greatest of of areas areas the the into into move move to to resources resources

encourage encourage must must policy policy social social that that states states Douglas Douglas practitioners. practitioners.

health health private private some some for for train train gravy gravy lucrative lucrative very very a a be be to to

proven proven has has ACC ACC it. it. of of out out well well extremely extremely done done have have who who interests interests

vested vested created created has has system system the the Consequently Consequently needs. needs. urgent urgent

more more from from away away and and problems, problems, minor minor other other and and injuries injuries sports sports

like like areas areas certain certain into into diverted diverted are are resources resources Valuable Valuable abuse'. abuse'.

'invites 'invites virtually virtually which which anomalies anomalies wasteful wasteful and and unfair unfair these these of of

example example an an as as cited cited is is (ACC) (ACC) Corporation Corporation Compensation Compensation Accident Accident

The The waste.36 waste.36 that that out out cutting cutting by by just just cent cent per per 50 50 by by improved improved

be be could could access access and and services services that that claimed claimed is is it it patients, patients, benefit benefit

to to working working in in than than rather rather inefficiency inefficiency institutional institutional on on wasted wasted

is is health health on on spent spent dollar dollar every every of of third third one one If If restructuring. restructuring.

for for overdue overdue long long as as listed listed also also 1s 1s health health Similarly Similarly 25 25

p.94 p.94 lbid lbid 38 38

earning earning from from sophisticated sophisticated more more becoming becoming were were that that trades trades some some

kept kept This This them. them. between between relativities relativities the the not not but but trades, trades, different different

of of status status the the did did so so changed changed needs needs its its and and industry industry As As

potential. potential. earning earning trades' trades' different different distorting distorting was was this this and and system system

the the of of out out break break to to rates rates higher higher on on those those allowing allowing was was bargaining bargaining

Two-tiered Two-tiered above. above. rates rates the the of of relativities relativities the the with with interfered interfered

rates rates lowest lowest the the increase increase to to Attempts Attempts below. below. those those on on impinged impinged

which which ceilings ceilings set set who who positions positions strong strong in in those those by by controlled controlled

was was system system The The earners. earners. income income low low about about concern concern mounting mounting was was

there there 1985 1985 By By confrontation. confrontation. avoid avoid to to designed designed was was It It credibility. credibility.

lacked lacked relations relations industrial industrial of of system system whole whole The The

wages. wages. their their and and workers workers from from flexibility flexibility more more is is for for calls calls Douglas Douglas

What What widening. widening. steadily steadily been been had had two two the the between between gap gap The The paid. paid.

rates rates actual actual than than rather rather area, area, job job each each for for rates rates minimum minimum legal legal

the the setting setting system system award award the the with with distorted distorted grossly grossly become become had had

system system relations relations industrial industrial the the decades decades few few last last the the Over Over here. here.

happen happen to to same same the the want want not not did did Douglas Douglas and and unions unions of of influence influence

in in decline decline the the to to led led had had countries countries other other in in adjust adjust to to failure failure The The

reforms. reforms. economic economic Government's Government's Labour Labour the the within within operates operates side side

each each way way the the and and legislation legislation rethink rethink to to need need urgent urgent an an therefore therefore

was was There There arms•.38 arms•.38 others others each each into into 'fell 'fell they they feeble feeble so so as as them them

characterises characterises facetiously facetiously more more even even Douglas Douglas employers', employers', pathetic pathetic

and and unions unions 'weak 'weak as as market market labour labour the the describing describing After After

Flexibility Flexibility Market Market Labour Labour

years'. years'. few few next next the the 'within 'within decision decision this this make make to to

colleagues colleagues his his challenging challenging in in emphatic emphatic is is he he again again but but Zealanders, Zealanders,

New New all all toward toward stance stance paternalistic paternalistic previous previous Government's Government's

the the gtven gtven this this of of harshness harshness the the of of aware aware is is he he claims claims

Douglas Douglas cover. cover. less less receive receive would would earners earners income income high high while while need, need,

most most in in those those to to assistance assistance of of level level higher higher much much a a afford afford could could

Government Government the the mean mean would would option option second second the the Following Following thin. thin. 26 26

p.l03 p.l03 lbid lbid 39 39

the the leave leave would would This This negotiations. negotiations. their their conduct conduct could could sides sides

both both which which in in freedom freedom the the increase increase would would it it hoped hoped Douglas Douglas Act, Act,

Relations Relations Labour Labour new new the the of of of of law law into into passing passing the the With With

productivity. productivity. high high corresponding corresponding

without without increases increases wage wage high high concede concede to to afford afford not not could could

they they therefore therefore competition, competition, foreign foreign face face to to had had finally finally employers employers

licenses, licenses, import import and and subsidies subsidies industrial industrial of of removal removal the the With With

wages.39 wages.39 high high pay pay can can industry industry or or company company

a a that that profitable profitable and and productive productive more more becoming becoming by by only only

is is it it same; same; the the are are interests interests their their of of Many Many economy. economy. the the

fouling fouling without without both, both, of of advantage advantage best best the the to to handled handled

is is conflict conflict that that how how is is question question The The income. income. their their

maximise maximise to to workers workers and and costs costs their their minimise minimise to to want want

employers employers conflict: conflict: basic basic a a be be always always will will There There

...... particularly particularly

unions unions the the afflicted afflicted has has different different and and new new the the of of fear fear

This This ideas. ideas. new new accept accept to to have have They They relations. relations. industrial industrial

in in important important really really are are which which attitudes attitudes is is it it area, area,

other other any any in in than than more more but, but, like like you you laws laws the the all all pass pass

can can you you that that is is already, already, made made have have they they progress progress the the

despite despite learn, learn, to to have have still still employers employers and and unions unions What What

surface. surface. the the under under simmering simmering problem problem longer-term longer-term a a leave leave

will will but but problems problems industrial industrial immediate immediate solve solve may may party party third third

a a by by Intervention Intervention issues. issues. policy policy broad broad the the out out work work to to left left was was

he he while while business business own own their their with with on on get get could could who who organisations organisations

strong strong two two establish establish to to helping helping by by job job a a of of out out himself himself work work to to

wanted wanted Rodger Rodger interference. interference. government government any any without without themselves themselves

deal deal some some to to come come employers employers and and unions unions the the see see to to determined determined

were were , Rodger, Stan Labour, Labour, of of Minister Minister the the and and Douglas Douglas

country. country. the the leaving leaving were were workers workers

skilled skilled many many so so why why and and badly badly so so performing performing was was economy economy

the the thought thought Douglas Douglas why why reasons reasons the the of of one one is is This This artificially. artificially.

up up propped propped income income their their had had groups groups other other while while wages wages higher higher 27 27

p.180 p.180 lbid lbid 40 40

pace pace keeping keeping not not is is Zealand Zealand New New that that concerned concerned is is Douglas Douglas

it.40 it.40 fix fix alone, alone, cannot, cannot, the Beehive Beehive the in in paper paper

of of pieces pieces signing signing Simply Simply change. change. a a make make themselves themselves

they they until until improve improve not not will will it it is, is, problem problem the the Whatever Whatever

decisions. decisions. daily daily those those making making are are people people of of thousands thousands

way way the the with with wrong wrong something something is is there there it, it, realizing realizing

without without beccmse beccmse is is it it economy economy the the with with wrong wrong gone gone has has

something something If If jobs. jobs. their their do do will will they they way way the the and and work, work,

will will they they where where money, money, their their use use to to how how on on decision decision

daily daily own own their their making making all all Zealanders Zealanders New New million million

three three is is it it abstraction; abstraction; an an not not is is economy economy The The

sacked. sacked. be be should should it it therefore therefore wrong; wrong;

it it got got obviously obviously Government Government the the right, right, go go not not do do things things

lives. lives. If If their their will will so so and and automatically automatically improving improving on on go go

will will economy economy the the decisions decisions right right the the makes makes Government Government

the the if if that that believe believe They They problem. problem. Government's Government's the the is is

economy economy The The responsibility. responsibility. personal personal their their as as it it regard regard

not not do do They They behaviour. behaviour. their own own their of of reflection reflection a a as as

not not thing, thing, abstract abstract very very a a as as economy economy the the see see people people ......

states: states: he he agriculture, agriculture, in in role role minor minor very very a a play play should should state state

the the that that conviction conviction Douglas's Douglas's to to testimony testimony In In business.' business.' other other any any

like like business business a a be be 'to 'to farming farming for for time time was was It It hand. hand. of of out out got got had had

farmers farmers to to out out meted meted assistance assistance government government of of scale scale the the Douglas, Douglas,

For For sector. sector. agricultural agricultural the the to to reference reference particular particular makes makes Douglas Douglas

Prosperity, Prosperity, Toward Toward in in state state neutral neutral the the of of idea idea the the For For

whole. whole.

a a as as community community the the benefit benefit which which services services the the after after look look to to only only

is is government government The The viable. viable. economically economically remain remain ·will ·will industries industries

which which decide decide should should 'market' 'market' the the that that theory theory the the from from arises arises

state state 'non-interventionist' 'non-interventionist' or or neutral neutral the the of of concept concept The The

State State Neutral Neutral The The

earning. earning. be be should should they they

much much how how anyone anyone telling telling not not and and corner corner neutral neutral a a in in government government

the the leaving leaving be, be, should should it it where where relations relations labour labour for for responsibility responsibility 28 28

The The however. however. agriculture agriculture of of that that just just than than area area wider wider

far far a a encapsulates encapsulates naturally naturally state state neutral neutral the the of of idea idea The The

resulted. resulted. had had which which flooding flooding and and erosion erosion soil soil the the control control to to year year a a

dollars dollars of of millions millions cost cost had had pasture pasture into into them them turning turning as as sign sign good good

a a as as seen seen is is scrub scrub to to back back reverting reverting areas areas Marginal Marginal llama. llama. and and

deer, deer, goats, goats, like like products products volume volume low low high-value, high-value, into into diversifying diversifying

by by direction direction right right the the in in leading leading industry industry the the perceived perceived Douglas Douglas

writing, writing, of of time time the the At At basis'. basis'. financial financial sound sound a a to to on on back back farming farming

get get 'to 'to base base resource resource the the of of use use efficient efficient more more a a and and restructuring restructuring

debt debt in in exercise exercise major major a a is is advocates advocates Douglas Douglas What What

people. people. younger younger for for way way the the pave pave to to land land the the off off get get should should

they they efficiency efficiency increase increase not not could could farmers farmers if if so so process, process, that that

of of part part was was prices prices land land Falling Falling pay. pay. to to prepared prepared was was market market the the

prices prices with with terms terms to to come come to to needed needed farming farming that that insists insists but but cnsts cnsts

a a facing facing were were farmers farmers knew knew Douglas Douglas wanted. wanted. market market the the what what

producing producing start start to to but but option option no no have have now now would would farmers farmers free, free,

been been once once had had that that services services of of cost cost full full the the charge charge to to was was Fisheries Fisheries

and and Agriculture Agriculture of of Ministry Ministry the the that that announcement announcement the the and and

subsidies, subsidies, fertiliser fertiliser and and SMPs SMPs like like incentives incentives of of out out phasing phasing the the

With With subsidies. subsidies. for for need need more more no no therefore therefore was was there there so so exporters exporters

Zealand Zealand New New to to return return the the increased increased had had devaluation devaluation cent cent

per per 20 20 The The farmers. farmers. to to concessions concessions and and subsidies subsidies all all of of elimination elimination

a a

wholesale wholesale began began Douglas Douglas sector, sector, farming farming the the in in efficiency efficiency

maximise maximise and and head head its its on on system system this this turn turn to to order order In In

billion. billion. $4.3 $4.3 years, years, five five of of period period a a within within Zealand, Zealand, New New cost cost

had had farmers farmers to to subsidies subsidies these these Douglas, Douglas, to to According According want. want. not not did did

world world the the what what producing producing on on go go to to farmers farmers caused caused They They dropping. dropping.

were were output output their their on on returns returns real real the the though though even even farmers farmers

for for earnings earnings high high unrealistically unrealistically to to led led schemes schemes These These taxpayer. taxpayer.

Zealand Zealand New New the the crippling crippling were were Prices Prices Minimum Minimum Supplementary Supplementary

and and Scheme Scheme Incentive Incentive Livestock Livestock Muldoon's Muldoon's of of burden burden

the the eyes eyes his his In In adapt. adapt. to to slower slower and and complacent complacent become become has has

It It Asia. Asia. and and Europe Europe Western Western of of economies economies dynamic dynamic more more the the with with 29 29

employers. employers. and and unions unions between between methods methods bargaining bargaining effective effective

more more and and savings savings encourage encourage to to cuts cuts tax tax to to finance, finance, of of deregulation deregulation

and and sector sector import/export import/export the the tn tn controls controls of of elimination elimination

from from above, above, covered covered have have we we areas areas the the of of most most to to applies applies

neutrality neutrality of of principle principle the the Therefore Therefore interference. interference. government government

without without compete compete to to order order in in standards standards their their raise raise services services public public

effected effected and and businesses businesses that that requires requires economy economy the the of of sphere sphere

every every almost almost in in philosophy philosophy forces forces market market a a of of implementation implementation 30 30

p.9 p.9 Prosperity Prosperity Toward Toward Douglas Douglas 2 2

p.222-23 p.222-23 1981 1981 December December 2, 2, Number Number 33, 33, Vol. Vol.

Science Science Political Political Way!" Way!" Better Better A A Be Be To To Got Got "There's "There's of of Review Review K.Jackson K.Jackson 1 1

statement. statement. personal personal a a make make to to "2 "2 compelled compelled felt felt I I

and and implement implement to to chance chance a a have have never never may may we we feared feared I I ideas ideas the the

about about cared cared still still I I But But ...... me me depressed depressed situation situation our our of of futility futility

The The ...... policies policies wrong wrong the the to to itself itself committed committed increasingly increasingly "had "had

Party Party Labour Labour the the on, on, years years seven seven wrote wrote Douglas Douglas As As frustration". frustration".

of of sense sense "deep "deep a a of of out out written written was was Way Way Better Better

personalities. not not ideas, ideas, in in be be 1 1

will will politicians politicians between between competition competition which which in in fashion fashion

new new a a started started has has Douglas Douglas Roger Roger that that hoped hoped be be to to is is

It It stances. stances. policy policy short-term· short-term· of of precedent, regardless regardless precedent,

and and cant cant through through cut cut to to willing willing man man A A history. history.

than than rather rather objectives objectives of of terms terms in in thinking thinking politician politician

an an past, past, is is what what by by hide-bound hide-bound not not is is who who MP MP

an an is is Here Here ...... coherently coherently ideas ideas communicate communicate to to ability ability

the the with with coupled coupled independent-mindedness, independent-mindedness, some some is is

it it system, system, two-party two-party debilitating debilitating our our in in needed needed is is that that

quality quality one one is is there there if if and and ...... independently-minded independently-minded

being being for for Douglas Douglas applaud applaud to to on on went went J J ackson ackson

Keith Keith time", time", long long a a for for Parliament Parliament of of out out come come to to documents documents

refreshing refreshing most most the the of of "one "one as as it it Describing Describing politicians. politicians. Party Party

Labour Labour especially especially politicians, politicians, most most of of views views traditional traditional the the from from

divergent divergent vastly vastly something something as as commentators commentators most most by by seen seen was was

book book this this 'Muldoonism', 'Muldoonism', of of tide tide high high the the during during Written Written

1987. 1987. to to up up years years

the the over over evolved evolved have have theories theories Douglas's Douglas's far far how how of of any, any, if if idea, idea,

some some provide provide to to Way! Way! Better Better A A Be Be To To Got Got There's There's publication publication

1980 1980 Douglas's Douglas's of of made made be be now now will will study study comparative comparative

a a One, One, Chapter Chapter as as framework framework same same the the owing owing 11 11 F o o F

WAY! WAY! BETTER BETTER A A BE BE TO TO GOT GOT THERE'S THERE'S

TWO TWO CHAPTER CHAPTER 31 31

p.35 p.35 Ibid Ibid 5 5

p.34 p.34 Way! Way! Better Better A A Be Be To To Got Got There's There's R.Douglas R.Douglas 4 4

p.223 p.223 Jackson Jackson 3 3

------

stock. stock. rolling rolling and and track track

in in investment investment that that all all using using of of way way better better a a be be to to got got

has has There There year. year. 1979-80 1979-80 the the for for million million $100 $100 around around

- money money losing losing for for known known best best are are Railways Railways The The

Railways: Railways:

the the revamping revamping for for ideas ideas Douglas's Douglas's in in it it of of hint hint slight slight a a is is there there but but

Way Way Better Better in in displayed displayed openly openly policy policy a a not not is is Corporatisation Corporatisation

enterprise. enterprise. 5 5

private private as as basis basis the the on on do do they they work work for for departments departments

other other charge charge departments departments trading trading Make Make answers. answers. the the

with with ruthless ruthless Be Be trimmed? trimmed? be be they they Can Can job? job? the the doing doing

they they Are Are necessary? necessary? departments departments Government Government are are

- Ask Ask out. out. it it cut cut something, something, justify justify cannot cannot department department

a a do. do. they they everything everything If If justify justify departments departments Make Make

service.4 service.4 the the of of receiver receiver the the on on - be be should should

it it where where service service the the of of cost cost the the Put Put licenses. licenses. various various

for for applications applications processing processing of of cost cost full full the the including including

possible, possible, wherever wherever price, price, full full the the Charge Charge undercharge. undercharge.

Don't Don't subsidy. subsidy. of of form form a a is is agriculture agriculture and and industry industry

to to services services Government Government of of undercharging undercharging The The

statements: statements: these these m m seen seen

be be can can scheme scheme user-pays user-pays a a of of seedlings seedlings the the Thus Thus Way. Way. Better Better

to to back back traced traced easily easily be be can can ventures ventures profit-making profit-making into into services services

state state particular particular transform transform to to idea idea Douglas's Douglas's of of genesis genesis The The

State State Profit-making Profit-making The The

different. different. very very something something

as as seen seen were were they they Muldoon, Muldoon, under under politics politics Party Party National National

even even and and politics politics Party Party Labour Labour of of context context the the in in but but radical, radical,

particularly. particularly. by by ideas ideas the the were were enunciated Nor Nor politician."3 politician."3 a a

never never and and together together brought brought "seldom "seldom were were they they but but new, new,

not not were were Way Way Better Better into into of of Many Many incorporated incorporated ideas ideas the the 32 32 33

Turn the show into a corporation. Put the employees on to the board and management committees at all levels. Give them worker productivity bonuses if they earn them.6 Above all, get the Minister off the Railway's back. Politicians do not know how to run businesses. Leave that to the businessmen. 7

Fighting Inflation Although not overtly advocating a strict monetarist stance in regard to inflation, Douglas did recognise inflation as a major evil both nationally and internationally at a time when it was the trend among foreign governments, particularly 's tn Britain, to concentrate on eradicating inflation instead of unemployment as had previously been the case. Conceding that traditional price controls do not stem inflation Douglas states that the only way to control it is to produce growth. Altogether however, his 1980 policy was rather vague:

It must be handled by a combination of policies including responsible fiscal and monetary measures, the encouragement of competition in domestic markets, price controls in limited areas, agreements with the movement and employers on reasonable wage fixing machinery and, above all, an economic strategy which produces growth. 8

Opening Up The Economy Although not propounding the floating of the Kiwi dollar, most of Douglas's subsequent razing of the 'four-walled fortress' was directly in line with theories he championed in Better Way. One of the original policies in 1980 that had caused so much

6 lbid p.60 7 Ibid p.61 8 lbid p.42

p.39-40 p.39-40 Ibid Ibid 11 11

p.20 p.20 Ibid Ibid 10 10

p.22 p.22 Ibid Ibid 9 9

wealth, wealth, creating creating be be · · should should industries industries climate climate economic economic salubrious salubrious

more more a a In In subsidies. subsidies. various various eliminating eliminating by by coffers coffers Government Government

the the to to made made be be could could savings savings huge huge realized realized Douglas Douglas operations. operations.

unproductive unproductive of of continuation continuation the the encouraged encouraged had had Subsidies Subsidies

manufacturers.ll manufacturers.ll up up wake wake

will will that that one one only only the the is is treatment treatment water water cold cold The The ......

out. out. it it Phase Phase pockets. pockets. wrong wrong

the the in in puts profits profits puts and and money money costs costs licensing licensing Import Import

Carpets. Carpets. Bremworth Bremworth at at needed needed

machinery machinery new new for for them them acquire acquire to to trying trying had had he he frustration frustration the the

after after licenses licenses import import toward toward animosity animosity some some felt felt long long had had Douglas Douglas

competition. competition. like like - activity activity commercial commercial 0 0 I I

improve improve to to available available are are ways ways other other where where them them Drop Drop

consumer. consumer. the the protect protect to to way way best best the the not not are are Controls Controls

market. market. international international

the the on on competitive competitive more more goods goods produced produced Zealand Zealand New New make make

to to devalue devalue to to was was theory theory this this of of progression progression natural natural A A society. society.

within within wealth wealth of of redistribution redistribution fairer fairer a a make make to to - Die" Die" or or "Trade "Trade -

growth growth economic economic export-led export-led an an stimulating stimulating by by cake' cake' bigger bigger a a 'bake 'bake

to to was was reforms reforms Douglas's Douglas's of of intentions intentions stated stated the the of of One One Way. Way.

Better Better in in pre-figured pre-figured also also was was controls controls of of Elimination Elimination

Competitiveness. Competitiveness. 9 9

International International of of Index Index Douglas Douglas the the satisfy satisfy to to cent cent

per per 20 20 around around by by devalue devalue to to need need would would we we 1980 1980

In In ...... world world outside outside the the in in feet feet their own own their on on stand stand can can

businesses businesses Zealand Zealand New New where where point point the the to to Devalue Devalue

times. times. the the of of context context

the the in in policies policies 'radical' 'radical' most most the the of of one one - cent cent per per 20 20 by by devalue devalue

to to avowal avowal open open his his was was colleagues colleagues caucus caucus his his among among perturbation perturbation 34 34

p.64 p.64 Ibid Ibid 13 13

I.b.id. I.b.id. p.62 p.62 12 12

controls. controls. import import than than other other areas areas

in in tactics tactics deregulation deregulation implementing implementing toward toward there there from from distance distance

short short a a be be only only could could it it and and forces' forces' 'market 'market and and 'competition' 'competition'

of of terms terms in in speaking speaking already already was was Douglas Douglas noted noted have have we we as as but but

stage, stage, that that at at things things of of scheme scheme the the in in apparent apparent not not were were controls controls

exchange exchange of of abolition abolition and and sector sector financial financial the the of of Deregulation Deregulation

economy. economy. Zealand Zealand New New the the to to competition competition more more introduce introduce to to

needed needed was was what what of of conception conception some some have have did did Douglas Douglas obviously obviously

then then programme programme deregulatory deregulatory a a of of part part as as above above mentioned mentioned

controls' controls' of of 'elimination 'elimination the the include include we we if if However, However, 1984. 1984. before before

Douglas Douglas of of mind mind the the in in fruition fruition reached reached had had economy economy Zealand Zealand New New

the the of of deregulation deregulation wholesale wholesale of of idea idea the the that that indicate indicate to to evidence evidence

little little be be to to seems seems There There name. name. in in not not least least at at Way, Way, Better Better

in in Douglas Douglas by by for for called called openly openly policy policy a a not not is is Deregulation Deregulation

Deregulation Deregulation

assets. assets. national national some some of of ownership ownership foreign foreign entailed entailed if if even even it it

employment employment and and growth growth provide provide to to Zealand Zealand New New in in welcomed welcomed

be be should should investment investment foreign foreign that that asserted asserted Douglas Douglas Finally, Finally,

emphasis] emphasis] l3 l3

[my [my operated. operated. nearly nearly more more forces forces market market that that ensure ensure

would would subsidies subsidies of of removal removal The The ...... economy economy the the in in

inefficiencies inefficiencies to to add add turn, turn, their their in in which, which, investment investment

and and profit profit costs, costs, in in distortions distortions cause cause They They pay. pay.

should should else else someone someone that that belief belief the the encourage encourage they they

because because inefficiency inefficiency and and waste waste encourage encourage Subsidies Subsidies

die. 2 2 1

to to left left be be or or themselves, themselves, cure cure should should industries industries Sick Sick

money. money. taxpayers taxpayers off off living living not not 35 35 36

Tax Reform This was one of Douglas's mam platforms for economic reform - to create incentives for people to invest more in the local economy. It had always seemed counter-productive to Douglas to lay the heaviest tax burden on those who made the best use of their business assets because asset-owners who made infrequent use of them paid very little tax. They therefore had no incentive to improve their business. Douglas therefore called for an assets tax to encourage efficient use of them. Douglas also wished to reform personal taxation levels and introduce an indirect tax that would be unavoidable to tax dodgers.

Income tax is too high. Cut the rates. Have only two rates. Put a retail sales tax, say 10 per cent, on all goods at the point of sale.14

Eventually Douglas would have liked to have seen the complete abolition of all income tax.

We should replace income tax with a tax on all wages, salaries and employee expenses, including what IS paid out to owners of enterprises. A payroll tax m other words.15

Reallocation of Resources Although not yet talking m terms of 'targeting' those in more need of state services than others, Douglas nevertheless saw a great deal of room to manouevre in redistributing wealth within society. As we have seen Douglas's proposals in are an attempt to spread the tax burden more evenly among New Zealand taxpayers. Douglas's proposals for revamping the welfare system fore- shadow later moves in encouraging beneficiaries 'to help

14 Ibid p.66-67 15 Ibid p.76 37 themselves' without the visible hand of Government prodding them along. In an exact vaticination of what he wrote several years later, 16 Douglas inveighs against the benefit system for having created inequalities over the years as it had been added to in a 'higgledy-piggledy fashion'. Douglas's answer was to simplify the whole system by wiping out all the existing benefits and rolling them into one, including national superannuation.17

The Labour Market Writing in a slightly more conciliatory tone than seven years later, Douglas accused the unions of not keeping up with the times and always looking for short-term gain. Douglas was clearly asking the unions to be more 'flexible' in their wage bargaining by advocating that they can have wages as high as they can negotiate but only as high as productivity allows, "but those who refuse to budge from the existing leap-frogging union structure will get only as much as the weakest industry their fellow-members work in can afford." 18

The Neutral State Again this is not an idea overtly expounded in Better Way, although it is a theory that follows on naturally in some instances from the implementation of market forces. Yet Douglas in 1980 plainly still saw a role for the Government to play in the economy by 'picking winners' for priority industries. In today's language, Douglas was still an interventionist.

No successful business does everything. It chooses priorities. So should a nation. We should pinpoint industries that are vital to the country's interests. Then help them. Give them priority access to finance.19 16 see p.18 17 Douglas Better Way p.15 18 Ibid p.72 19 Ibid p.56-57

bureaucratic bureaucratic its its and and system system benefit benefit the the toward toward Hostility Hostility

competition. competition. foreign foreign to to exposure exposure greater greater

facilitate facilitate to to market market import import the the in in controls controls government government of of removal removal

the the with with category category this this into into fit fit to to seem seem also also would would Deregulation Deregulation

policies. policies. corporatisation corporatisation later later to to relevance relevance without without totally totally not not

are are Railways Railways the the for for proposals proposals Douglas's Douglas's Again, Again, Broadcasting. Broadcasting. of of

Minister Minister was was he he when when 1973 1973 in in back back Corporation Corporation Broadcasting Broadcasting the the

of of division division Douglas's Douglas's in in seen seen be be can can corporatisation corporatisation of of prototype prototype

early early An An example. example. obvious obvious an an is is services services Government Government particular particular of of

cost cost full full the the Charging Charging Way. Way. Better Better in in mark mark unobtrusive unobtrusive an an make make

corporatisation corporatisation of of policy policy associated associated its its and and profit-maker profit-maker a a into into

State State the the turning turning of of thoughts thoughts Thus Thus come. come. to to things things for for groundwork groundwork

the the down down laying laying as as seen seen be be can can ideas ideas of of set set Another Another

forth. forth. so so and and tax tax services services

and and goods goods a a became became tax tax sales sales retail retail the the such such As As comprehensively. comprehensively.

more more them them develop develop to to 1980s 1980s the the through through moved moved he he as as

identical identical not not are are fields fields these these in in ideas ideas post-1984 post-1984 and and pre pre Douglas's Douglas's

Naturally, Naturally, stage. stage. earlier earlier much much a a at at mind mind Douglas's Douglas's in in germinated germinated

had had bargaining, bargaining, wage wage in in flexibility flexibility provide provide to to reform reform market market

labour labour and and invest, invest, to to incentives incentives create create to to cuts cuts tax tax subsidies, subsidies,

state state cutting cutting by by economy economy the the of of up up opening opening post-1984 post-1984 the the for for

ideas ideas the the that that doubt doubt little little be be can can there there instance instance For For areas. areas. some some

in in correlation correlation direct direct a a see see to to possible possible is is it it Prosperity, Prosperity, Toward Toward and and

Way Way Better Better works, works, mam mam two two Douglas's Douglas's companng companng After After

Conclusion Conclusion

up. up. them them prop prop to to government government of of hand hand visible visible

the the require require they they if if efficiently efficiently competing competing be be well well very very cannot cannot

Businesses Businesses state. state. the the of of role role perceived perceived the the on on have have would would policies policies

such such impact impact full full the the to to as as part part Douglas's Douglas's on on confusion confusion some some

indicate indicate to to seem seem would would above) above) noted noted we we (as (as sector sector import import the the

in in controls controls governmental governmental certain certain of of abolition abolition the the However, However, 38 38 39 excesses seems also to have caused Douglas some consternation over a long period of time, even if his solutions to its problems were not made explicit in Better Way. This would lead one to the conclusion that although Douglas had not fully developed many of his ideas in Better Way, he had clearly identified those problems which were to occupy his thoughts right through to, and during, his tenure as Minister of Finance. Finally, there are those policies enunciated in Toward Prosperity whose beginnings cannot be identified in Better Way. These include the policies on inflation and the more abstract theory of the neutral state, although as we have seen there is some confusion over what role Douglas thought the state should play. Where did these policies come from? Were they a natural progression from what Douglas had already stated or did he take on board something totally out of character with his early policies once he entered Government in July 1984? These questions will be looked at in the next chapter.

p.30 p.30 Right Right the the of of Revival Revival in in Right Right Libertarian Libertarian The The B.Jesson B.Jesson 2 2

paper. paper. this this in in included included

beeh beeh not not therefore therefore has has It It new. new. anything anything adding adding without without argument argument

same same the the much much continues continues 1989, 1989, in in published published was was which which Labour, Labour,

of of Fragments Fragments book, book, third third A A respectively. respectively. 1988 1988 and and 1987 1987 in in published published

Jesson Jesson books books two two the the from from primarily primarily derived derived been been has has thesis thesis Jesson Jesson The The 1 1

"lunatic "lunatic the the to to belonging belonging as as economics economics such such Describing Describing

Right'. Right'.

'New 'New or or 'Libertarian' 'Libertarian' the the with with associates associates Jesson Jesson which which economics economics

monetarist monetarist and and laissez-faire laissez-faire implementing implementing by by spectrum spectrum political political

the the of of side side other other the the to to shifted shifted had had policies policies Government Government time time

This This possible. possible. "2 "2 way way perverse perverse most most the the "in "in Jesson, Jesson, to to according according

time, time, this this except except label, label, a a such such itself itself earned earned again again once once Zealand Zealand

New New 1984-87 1984-87 years years the the In In 1930s. 1930s. the the in in state state welfare welfare complete complete

a a of of establishment establishment subsequent subsequent the the and and 1890s 1890s the the in in policies policies

welfare welfare with with experiments experiments its its to to due due world world the the of of laboratory laboratory

social social the the as as described described been been often often has has Zealand Zealand New New

Thesis1 Thesis1 Jesson Jesson The The

officials. officials.

Treasury Treasury by by formulated formulated independently independently were were esson esson J J to to according according

which which Management Management Economic Economic in in made made proposals proposals specific specific

at at look look then then and and Douglas, Douglas, Roger Roger by by made made comments comments of of light light the the in in

thesis thesis Jesson Jesson the the examine examine will will chapter chapter This This man. man. front front unwitting unwitting

their their as as Douglas Douglas maintaining maintaining while while Management, Management, Economic Economic

papers papers briefing briefing Treasury Treasury the the on on based based Government, Government, the the for for policy policy

economic economic all all formulate formulate to to came came who who officials officials Bank Bank Reserve Reserve and and

Treasury Treasury by by 1984 1984 -in -in subverted subverted was was 'Rogernomics' 'Rogernomics' as as out out started started

originally originally what what that that thesis thesis the the expounded expounded has has Jesson Jesson Bruce Bruce

However, However, years. years. the the over over line line consistent consistent reasonably reasonably a a kept kept has has

Douglas Douglas that that appear appear would would far, far, it it so so evidence evidence the the by by Going Going

USURPED? USURPED? ROGERNOMICS ROGERNOMICS - GOVERNMENT GOVERNMENT IN IN

THREE THREE CHAPTER CHAPTER 40 40 41 fringe" in the 1970s, Jesson claims such policies appeared to be a lost cause because no politicians were prepared to support them. The only ones prepared to endorse such views were those individuals and organisations which worked outside the mainstream, such as and the National Business Review under the editors hip of Colin J ames. By 1984 however, there had developed a small and influential clique of adherents to these ideas such as business notables and certain highly placed bureaucrats. Jesson attempts to explain how this came about in Marxist terms. Was it fate or free will which led to the ascendency of 'libertarian' economics?

The constellation of forces - the [Althusserian] element of ruptural unity - did create a certain inevitability about what occurred, not in the sense of there being no alternative, but in the sense that everything contributed to the ascendency of the libertarian right. This approach provides the background to the political process . . . 3

In Gramscian terms, the had gained the intellectual leadership and political hegemony of the nation and therefore won the tacit support of the masses. Turning to Douglas himself, Jesson notes that Douglas before 1984 was advised by a wide array of people. In particular Jesson points out Doug Andrew, Treasury's 'inside man' in the Labour Party (he was seconded to the Leader of the Opposition's office), as having a considerable amount of influence over Douglas. Jesson credits Andrew with having begun the process of miscegenation of Douglas economics and Treasury economics before 1984. Douglas, Andrew, and Geoff Swier from the Labour Research Unit formulated an economic policy ·in 1983 which was put to the Labour Policy Council where it was hotly disputed by

3 Ibid p.34-35

Douglas Douglas 5 5 Toward Toward Prosperity Prosperity p.38 p.38

with with no no response response whatsoever. whatsoever.

strenuous strenuous efforts efforts to to acquire acquire a a copy copy from from Labour Labour Party Party Headquarters Headquarters met met

Douglas's Douglas's version version of of the the events events cannot cannot be be verified. verified. The The author's author's

4 4 Unfortunately Unfortunately because because this this document document has has remained remained unpublished, unpublished,

The The events events surrounding surrounding the the exchange exchange crisis crisis immediately immediately

what what I I intended intended if if I I became became Minister Minister of of Finance. Finance. 5 5

advance advance ...... everyone everyone involved involved now now knew knew clearly clearly

The The total total programme programme had had been been spelled spelled out out in in detail detail in in

taken taken by by the the Labour Labour Government Government after after its its election. election.

first first document, document, there there were were no no surprises surprises in in the the action action

publication. publication. However, However, for for anyone anyone who who had had read read that that

and and the the original original paper paper had had never never been been written written for for

that that much much detail detail in in the the short short time time we we had had available available

policy policy paper. paper. The The public public hadn't hadn't the the capacity capacity to to absorb absorb

public public argument argument regarding regarding every every line line of of a a 51 51 page page

pointless pointless to to become become involved involved in in months months of of detailed detailed

highly highly generalised. generalised. We We all all recognised recognised it it would would be be

The The ultimate ultimate public public statement statement was, was, of of necessity, necessity,

to to give give the the 'broad 'broad details' details' of of the the plan. plan.

the the devaluation devaluation policy policy and and other other associated associated complex complex policies policies and and

Douglas Douglas claims claims a a second, second, less less specific specific paper paper was was written written to to 'hide' 'hide'

damage damage a a policy policy of of devaluation devaluation could could have have on on the the economy, economy,

a a majority majority favouring favouring 'its 'its broad broad thrust'. thrust'. Realizing Realizing the the possible possible

merits merits of of the the package package which which split split the the Council Council into into two two sides, sides, with with

and and a a minimum minimum wage. A A 'rigorous' 'rigorous'

argument argument ensued ensued over over the the 4 4

certain certain proposals proposals including including monetarist monetarist anti-inflationary anti-inflationary policies policies

Labour's Labour's Policy Policy Council Council on on 24 24 November November 1983 1983 which which contained contained

document document entitled entitled Economic Economic Policy Policy Package Package was was presented presented to to

Douglas Douglas in in Toward Toward Prosperity. Prosperity. Douglas Douglas alleges alleges a a 51-page 51-page

This, This, however, however, is is not not the the complete complete story story according according to to

Douglas's Douglas's ideas ideas and and mostly mostly traditional traditional Labour Labour ideas. ideas.

eventuated eventuated in in Labour's Labour's 1984 1984 election election policy policy containing containing few few of of

Policy Policy Council Council which which was was 'bland' 'bland' and and 'non-committal'. 'non-committal'. This This

dispute dispute resulted resulted in in a a compromise compromise policy policy being being passed passed by by the the

the the President, President, Jim . Anderton. According According to to Jesson, Jesson, this this intra-party intra-party 42 42

8 8 see see B.Jesson B.Jesson Lange's Lange's Fall Fall in in Making Making NBR NBR Weekend Weekend 18/8/89 18/8/89 Review Review p.l p.l

7 7 B.Jesson B.Jesson Behind Behind The The Mirror Mirror Glass Glass p.123 p.123

6 6 Jesson Jesson Revival Revival of of the the Right Right p.42 p.42

Government. Government. 8 8

are are openly openly hostile hostile toward toward the the institution institution they they work work for for t.e. t.e.

normal normal role role of of public public servants servants and and have have become become politicised politicised and and

It It stems stems from from this this that that Treasury Treasury officials officials have have abandoned abandoned the the

party.

7 7

committed committed parliamentary parliamentary by by the the actions actions of of the the

wider wider found found Labour Labour itself itself Party Party organisation organisation

Prebble Prebble and and Caygill. Caygill. caucus caucus Cabinet Cabinet and and dominated dominated the the

policies. policies. These These were were imposed imposed on on Cabinet Cabinet by by Douglas, Douglas,

Roderick Deane ...... formulated formulated the the Government's Government's

like like Graham Graham Scott, Scott, assistant assistant secretary secretary of of and and Tre~sury, Tre~sury,

constitution constitution worked worked in in the the bureaucrats' bureaucrats' favour. favour. Men Men

Under Under Labour, Labour, the the autocratic autocratic structure structure of of the the

overwhelmed overwhelmed ......

policy policy on on Cabinet. Cabinet. Other Other Cabinet Cabinet ministers ministers were were

ministers ministers acted acted as as political political brokers, brokers, imposing imposing this this

The The bureaucrats bureaucrats provided provided the the policy, policy, and and the the finance finance

bureaucracy" bureaucracy" were were able able to to manipulate manipulate political political power. power.

officials officials who who as as "hardline "hardline right-wingers right-wingers within within the the government government

Secondly, Secondly, Douglas Douglas and and his his colleagues colleagues were were 'helped' 'helped' by by Treasury Treasury

Cabinet Cabinet and and most most Government Government departments departments along along with with it. it.

Prebble, Prebble, were were able able to to seize seize control control of of economic economic debate debate within within

Douglas Douglas and and his his two two associate associate ministers, ministers, David Caygill and and Richard Richard

Jesson Jesson lists lists two two aspects aspects to to this this bureaucratic bureaucratic coup. coup. Firstly, Firstly,

policy."

6 6

policy. policy. "Douglas "Douglas provided provided the the political political will, will, and and Treasury Treasury the the

to to the the power power vacuum vacuum left left by by Labour's Labour's 'non-committal' 'non-committal' election election

Roderick Roderick Deane, Deane, could could enact enact their their own own economic economic programme programme due due

Treasury Treasury and and the the deputy deputy Governor Governor of of the the Reserve Reserve Bank, Bank, Dr. Dr.

manufactured manufactured an an environment, environment, according according to to Jesson, Jesson, where where

Jesson Jesson as as a a 'bureaucratic' 'bureaucratic' or or 'policy 'policy coup'. coup'. The The crisis crisis had had

following following the the election election of of Labour Labour in in July July 1984 1984 has has been been labelled labelled by by 43 43

Jesson Jesson Revival Revival of of the the Right Right p.42 p.42 11 11

l.b.id l.b.id p.l24 p.l24 10 10

9 9 Jesson Jesson Behind Behind the the Mirror Mirror Glass Glass p.122 p.122

Treasury Treasury on on the the extent extent of of Muldoon's Muldoon's mishandling mishandling of of the the economy economy

events. events. Douglas Douglas acknowledges acknowledges receiving receiving briefing briefing papers papers from from

This This once once again again contradicts contradicts Douglas's Douglas's version version of of the the same same

malfunctions malfunctions of of the the market-place.ll market-place.ll

residual residual matter matter of of tidying tidying up up inequities inequities and and

political political debate. debate. Political Political choice choice then then becomes becomes a a

matters matters of of economic economic orthodoxy orthodoxy that that are are beyond beyond

on on virtually virtually everything, everything, and and these these are are treated treated as as

to to the the economy. economy. Economic Economic Management Management has has policies policies

Virtually Virtually all all areas areas of of society society are are treated treated as as belonging belonging

purview purview of of political political choice. choice.

in in terms terms of of efficiency. efficiency. Economics Economics was was seen seen to to be be outside outside the the

upon upon by by the the bureaucrats bureaucrats versed versed in in the the technicalities technicalities of of economics economics

to to be be defined defined and and set set by by politicians politicians while while the the means means were were decided decided

According According to to Jesson Jesson it it separated separated ends ends from from means, means, with the the with goals goals

government government interference interference wherever wherever it it encountered encountered it. it. •1 •1 0 0

critique critique of of [Muldoon's] [Muldoon's] policies•9 policies•9 it it advocated advocated 'an 'an end end to to

for for Labour's Labour's economic economic revolution. revolution. Written Written as as 'a 'a devastating devastating

Economic Economic Management, Management, claims claims Jesson, Jesson, was was the the blueprint blueprint

economic economic debate. debate.

thought thought that that Douglas Douglas had had been been defeated defeated in in the the pre-election pre-election

issues issues inherent inherent within within the the Labour Labour Party, Party, and and because because Jesson Jesson

making making because because of of the the traditional traditional low-understanding low-understanding of of economic economic

officials officials who who had had virtually virtually complete complete control control over over economic economic policy­

As As far far as as Jesson Jesson is is concerned, concerned, it it was was Treasury Treasury and and Reserve Reserve Bank Bank

claims claims was was the the basis basis for for all all economic economic reforms reforms from from 1984 1984 onwards. onwards.

document document and and not not Douglas's Douglas's or or Labour's Labour's manifesto manifesto that that Jesson Jesson

economic economic analysis' analysis' entitled entitled Economic Economic Management. Management. It It was was this this

presented presented with with Treasury Treasury briefing briefing papers, papers, a a 'dispassionate 'dispassionate

When When Labour Labour first first became became the the Government Government m m 1984 1984 it it was was 44 44

14 14 Treasury Treasury Economic Economic Management Management p.144 p.144

13 13 Jesson Jesson Revival Revival of of the the Right Right p.43 p.43

12 12 Douglas Douglas Toward Toward Prosperity Prosperity p.71 p.71

institutions institutions in in order order for for them them to to provide provide a a wider wider range range of of services services

pressures." pressures." Treasury Treasury proposed proposed deregulating deregulating 14 14 financial financial

liquidity liquidity m m the the economy economy In In order order to to control control inflationary inflationary

monetary policy "concerned "concerned with with controlling controlling the the overall overall level level of of

Deregulation Deregulation of of finance. finance. This This was was part part of of Treasury's Treasury's

divergent divergent from from those those proposed proposed by by Douglas. Douglas.

each each of of the the examples examples listed listed and and then then see see whether whether they they are are

instances instances of of 'original' 'original' Treasury Treasury policies, policies, let let us us look look more more closely closely at at

family family care, care, and and so so on.' Since Since

Jesson Jesson has has spelled spelled out out 3 3 specific specific 1

exchange exchange controls, controls, corporatisation, corporatisation, GST, GST, reduced reduced income income tax, tax,

economy: economy: deregulation deregulation of of finance, finance, floating floating the the dollar, dollar, abolition abolition of of

most most of of the the reforms reforms that that were were to to transform transform the the New New Zealand Zealand

were? were? Jesson Jesson has has stated: stated: 'Economic 'Economic Management Management recommended recommended

Management Management really really as as unique unique to to Treasury Treasury as as Jesson Jesson claims claims they they

Were Were the the proposals proposals for for economic economic reform reform in in Economic Economic

Economic Economic Management Management

economic economic policy policy which which was was not not solely solely inspired inspired by by Treasury. Treasury.

according according to to Douglas, Douglas, was was Economic Economic Management Management -a -a mixture mixture of of

add add on on the the Government's Government's economic economic programme. programme. The The result, result,

present present a a united united front front to to the the public, public, Douglas Douglas ordered ordered his his staff staff to to

opportunity opportunity to to 'drive 'drive wedges' wedges' between between them. So, So, in in

order order to to 2 2 1

Treasury, Treasury, and and would would have have presented presented opponents opponents with with the the

highlghted highlghted the the differences differences between between the the Government Government and and

want want to to publish publish all all the the briefing briefing papers papers because because it it would would have have

and and pieces pieces of of economic economic policy policy easily. easily. Douglas Douglas claims claims he he did did not not

making making the the excuse excuse that that the the public public would would not not be be able able to to digest digest bits bits

publishing publishing the the bits bits he he agreed agreed with with but but later later thought thought better better of of it, it,

was was dubious dubious about about some some of of its its content. content. Initially Initially he he favoured favoured

papers papers recommended recommended 'a 'a considerable considerable amount amount of of policy', policy', Douglas Douglas

as as part part of of a a planned planned 'opening 'opening the the books' books' exercise. exercise. Although Although the the 45 45

p.163 p.163 18 18 Ibid Ibid

p.166 p.166 17Ibid 17Ibid

p.157 p.157 16 16 Ibid Ibid

p.143-44 p.143-44 15 15 Ibid Ibid

economy.18 economy.18 Exchange Exchange controls controls were were analogous analogous to to import import controls. controls.

the the efficiency efficiency with with which which resources resources can can be be used used in in the the

foreign foreign exchange exchange transactions" transactions" ,and ,and also also had had a a deleterious deleterious effect effect on on

which which effectively effectively restricted restricted "the "the range, range, volume volume and and speed speed of of

seen seen to to act act as as an an obstacle obstacle to to outflows outflows of of capital capital from from New New Zealand Zealand

Abolition Abolition of of exchange exchange controls. controls. Exchange Exchange controls controls were were

problems." problems." 1? 1?

exposed exposed to to world world trade trade while while generating generating spiralling spiralling external external debt debt

monetary monetary and and fiscal fiscal policies policies will will impoverish impoverish those those industries industries

changing changing circumstances circumstances so so that that there there would would be be "less "less risk risk that that poor poor

garner garner the the information information needed needed to to make make the the market market respond respond to to

vary vary with with the the fluctuations fluctuations in in supply supply and and demand demand which which would would

'crawling 'crawling peg' peg' rate. rate. The The primary primary advantage advantage being being that. that. it it would would

rate rate which which was was seen seen as as having having numerous numerous advantages advantages over over a a

This This was was thought thought to to be be best best achieved achieved through through a a floating floating exchange exchange

efficiently." efficiently."

16 16

markets markets so so that that market market forces forces can can operate operate more more

deregulation deregulation in in the the foreign foreign exchange exchange and and financial financial

imbalances, imbalances, together together with with a a significant significant degree degree of of

fiscal fiscal policies, policies, in in order order to to reduce reduce internal internal and and external external

requires requires a a considerable considerable tightening tightening of of monetary monetary and and

market, market, and and a a better better economic economic performance performance generally, generally,

...... achieving achieving a a better better balance balance in in the the foreign foreign exchange exchange

economy. economy.

snap election as as being being 'symptomatic' 'symptomatic' of of imbalances imbalances in in the the

against against the the New New Zealand Zealand dollar dollar on on the the announcement announcement of of the the 1984 1984

Floating Floating the the dollar. dollar. Treasury Treasury perceived perceived the the speculation speculation

means means of of achieving achieving specific specific

distributional distributional or or equity equity objectives." objectives." 5 5 1

responsible responsible risk-taking" risk-taking" as as "controls "controls ...... represent represent an an inefficient inefficient

regulations regulations do do not not hamper hamper competition, competition, innovation innovation and and

to to the the public public to to encourage encourage them them to to save save more. more. "It "It is is vital vital that that 46 46

p.213 p.213 22 22 Ibid Ibid

p.211 p.211 21 21 lbid lbid

p.286 p.286 20 20 Ibid Ibid

p.284-85 p.284-85 19 19 Ibid Ibid

------

times times average average weekly weekly earnings earnings (i.e. (i.e. $25,000 $25,000 per per

Ninety Ninety per per cent cent of of taxpayers taxpayers have have mcomes below below mcomes 1.6 1.6

expenditures. expenditures. n22 n22

uniform uniform rate rate structure structure for for comparable comparable incomes incomes and and substitute substitute

placed placed on on extending extending the the base, base, lowering lowering rates, rates, and and achieving achieving a a

tax tax base base was was simply simply too too narrow, narrow, ". ". . . . a a . high high priority priority should should be be

and and international international

compatibility. compatibility. "2 The The major major flaw flaw was was that that the the 1 1

achieving achieving "economic "economic efficiency; efficiency; equity; equity; simplicity simplicity and and certainty; certainty;

'unsatisfactory', 'unsatisfactory', Treasury Treasury proposed proposed rectifying rectifying the the system system by by

Reduced Reduced income income tax. tax. Viewing Viewing the the tax tax system system as as

sale sale to to the the private private sector. sector. n2 n2 0 0

well well as as benefits benefits for for the the fiscal fiscal deficit deficit might might be be achieved achieved by by their their

"For "For some some enterprises enterprises additional additional gains gains m m efficiency efficiency as as

management management more more accountable.19 accountable.19

based based on on private private sector sector norms norms of of profitability"; profitability"; and and make make

"remove "remove special special assistance assistance and and barriers barriers to to competition";set competition";set targets targets

social social objectives; objectives; separate separate non-profitable non-profitable services services from from profitable; profitable;

The The solutions solutions to to this this inefficiency inefficiency were were to to commercialize commercialize

some some industries industries and and 'inappropriate 'inappropriate incentives' incentives' to to management. management.

privileges privileges and and constraints" constraints" because because of of its its monopolistic monopolistic hold hold over over

environment environment which which was was "characterised "characterised by by a a multitude multitude of of special special

Secondly, Secondly, the the public public sector sector was was hindered hindered by by its its operating operating

employment; employment; and and holding holding prices prices below below the the cost cost of of supply. supply.

essential' essential' ·services ·services (such (such as as rural rural postal postal services); services); increasing increasing

obligated obligated to to to to non-commercial non-commercial objectives objectives like like maintaining maintaining 'non­

a a 'conflict 'conflict of of objectives' objectives' involved involved in in the the public public sector sector since since was was it it

hindrances hindrances to to them them performing performing more more efficiently. efficiently. Firstly, Firstly, there there was was

return return on on that that investment investment because because there there were were so so many many

government government investment. investment. The The taxpayer taxpayer was was not not getting getting a a proper proper

per per 12 12 cent cent of of Gross Gross Domestic Domestic Product Product and and per per 20 20 cent cent of of all all

Corporatisation. Corporatisation. In In 1984 1984 the the public public sector sector accounted accounted for for 47 47 48

annum). A steeply progressive scale, therefore, risks adverse incentive effects (both economic and tax compliance) for limited distributional income gains. A relatively flat scale on a comprehensive base is likely to be both more efficient and more equitable than a steeply progressive scale on the present base.23

Other methods of broadening the tax base included introducing taxes on fringe benefits and capital gains. Goods and services tax (GST). The pre-1984 indirect tax, the wholesale sales tax (WST), had many difficulties, the principal ones being that it was a single-stage tax with numerous exemptions and multiple rates of tax which made it difficult to administrate. Treasury recommended extending WST by abolishing all exemptions, including all services and the value added by retailers, and moving to a single rate of tax except for those goods, like tobacco and alcohol, "which impose costs to society as a whole."24 Family care. Between 1970-84 there was a 94 per cent increase in government spending in real terms on social welfare. This increased spending did not however translate into better services for the public. Treasury claims differences between various socio-economic groups have largely remained in areas like education, health, and housing. One of the proposals put forward by Economic Management to ameliorate this situation was for the government to establish priorities in its objectives through targeting those in the greatest need. As part of this targeting strategy Treasury recommended that supplementary financial assistance be provided for large single-earner families on low Incomes.

Appraisal How do these proposals compare with those

23 lbid p.216 24 Ibid p.225

Administration Administration on on 5 5 September September 1989, 1989, the the Hon. Hon. Richard , Prebble, the the

25 25 In In a a speech speech given given to to the the Dunedin Dunedin branch branch of of the the Institute Institute of of Public Public

dollar dollar . Also, Also, the the elimination elimination

of of controls, controls, although although not. not. exchange exchange 25 25

the the day day has has claimed claimed the the credit credit for for the the idea idea of of floating floating the the

Reserve Reserve Bank Bank officials, officials, although although at at least least one one leading leading politician politician of of

only only natural natural to to act act on on the the advice advice proffered proffered by by Treasury Treasury and and

foreseen foreseen by by Douglas Douglas in in 1980. 1980. Clearly Clearly in in such such an an emergency emergency it it was was

exchange exchange crisis crisis of of 1984 1984 - a a - crisis crisis that that could could not not have have been been

measures measures were were basically basically policies policies that that were were required required due due to to the the

Better Better Way. Way. However, However, it it is is important important to to note note here here that that these these

of of exchange exchange controls controls were were not not ideas ideas whose whose origins origins can can be be found found in in

The The floating floating of of the the New New Zealand Zealand dollar dollar and and the the elimination elimination

deregulation deregulation tn tn other other fields. fields.

their their logical logical conclusion, conclusion, would would have have equated equated with with further further

and and 'market 'market forces' forces' which which if if Douglas Douglas had had thought thought them them through through to to

subsidies, subsidies, and and the the mention mention of of key key concepts concepts such such as as 'competition' 'competition'

evidence evidence of of deregulatory deregulatory measures measures against against import import controls controls and and

foreshadowed foreshadowed in in Better Better Way, Way, we we did did see see that that m m Chapter Chapter Two, Two,

Although Although deregulation deregulation of of the the financial financial sector sector was was not not

m m terms terms of of generalities generalities and and not not specifics. specifics.

Way Way was was written, written, it it has has stood stood the the test test of of comparison comparison fairly fairly well well

market' market' thinking thinking was was still still at at a a very very immature immature stage stage when when Better Better

Management Management and and Better Better Way. Way. Considering Considering that that Douglas's Douglas's 'free 'free

On On the the whole whole the the same same can can be be said said of of c c o n o m m o n o i i E E c c

clearly clearly not not the the case. case.

consistency consistency between between the the two two documents documents in in Chapter Chapter Two, Two, that that is is

Prosperity Prosperity and and Better Better Way Way which which revealed revealed the the overall overall

Treasury? Treasury? After After the the content content comparison comparison between between Toward Toward

rejected rejected his his own own theories theories in in favour favour of of those those championed championed by by

between between it it and and Toward Toward Prosperity. Prosperity. Is Is this this evidence evidence that that Douglas Douglas

Economic Economic Management Management is is the the similarity similarity in in the the language language used used

from from one one another? another? Certainly Certainly the the first first thing thing that that strikes strikes us us about about

Economic Economic Management Management and and Better Better Way, Way, diverge diverge completely completely

recommended recommended by by Douglas Douglas in in Better Better Way? Way? Do Do the the two two documents, documents, 49 49

Ibid Ibid p.34 p.34 27 27

26 26 see see R.Douglas R.Douglas Toward Toward Prosperity Prosperity p.205 p.205

the the dollar· dollar· float. float.

former former Associate Associate Minister Minister of of

Finance, Finance, claimed claimed he he was was the the architect architect of of

------

week week after after the the election.) election.) At At another another level level though, though, it it

trading trading enterprises enterprises in in its its briefing briefing to to Roger Roger Douglas Douglas the the

(The (The Treasury Treasury advocated advocated market market principles principles for for state state

bureaucrats bureaucrats have have made made to to the the government's government's policies. policies.

strong strong contribution contribution which which right-wing right-wing Treasury Treasury

election election ...... On On one one level level this this illustrates illustrates the the unusually unusually

Roger Roger Douglas Douglas or or by by anybody anybody else else before before the the 1984 1984

...... strangely strangely it it was was not not advocated advocated publicly publicly either either by by

of of pre-1984. pre-1984. Simon Simon Collins Collins states states that: that:

private private sector sector is is one one area area which which has has no no links links to to the the Rogernomics Rogernomics

and and the the proposed proposed eventual eventual selling-off selling-off of of some some state state assets assets to to the the

Corporatisation Corporatisation of of the the public sector sector public in in its its Treasury Treasury context context

be be corroborated. corroborated.

Unfortunately, Unfortunately, without without that that 1983 1983 document document this this allegation allegation cannot cannot

part part of of his his contribution contribution to to Treasury's Treasury's Economic Economic Management. Management.

Policy Policy Package.27 Package.27 Presumably Presumably Douglas Douglas would would also also claim claim it it as as

its its origins origins because because Douglas Douglas claims claims it it as as part part of of his his 1983 1983 Economic Economic

origins origins in in Better Better Way. Way. However, However, we we enter enter a a grey grey area area here here as as to to

field field of of social social welfare welfare reform. reform. As As such such it it certainly certainly did did not not have have its its

The The Family Family Care Care package package is is a a specific specific policy policy of of the the broader broader

have have us us believe. believe.

is is not not totally totally at at the the behest behest of of Treasury Treasury advice advice as as Jesson Jesson would would

over over recent recent years,26 years,26 revealing revealing in in small small part part the the fact fact that that Douglas Douglas

which which Douglas Douglas has has shown shown a a marked marked degree degree of of antipathy antipathy toward toward

tax tax to to facilitate facilitate the the broadening broadening of of the the tax tax base. base. This This is is a a policy policy

is is interesting interesting to to note note here here Treasury's Treasury's advocacy advocacy of of a a capital capital gains gains

tax, tax, whether whether it it be be a a retail retail sales sales tax tax or or a a goods goods and and services services tax. tax. It It

Rogernomics Rogernomics of of 1980 1980 as as is is the the idea idea of of a a comprehensive comprehensive indirect indirect

Reduced Reduced income income tax tax is is quite quite clearly clearly synonymous synonymous with with the the

controls controls as as we we have have noted noted does does have have connotations connotations of of deregulation. deregulation.

controls, controls, was was preempted preempted m m Better Better Way, Way, and and the the abolition abolition of of 50 50

114 114

29 29 see see J.Roberts J.Roberts Politicians. Politicians. Public Public Servants Servants and and Public Public Enterprise Enterprise pgs.ll0-

28 28 Collins Collins Rogernomics Rogernomics p.67 p.67

ministers.29 ministers.29

servants servants in in New New Zealand Zealand do do still still work work cooperatively cooperatively with with their their

obediently obediently serving serving their their masters masters in in government, government, that that public public

longer longer playing playing to to the the classical classical concept concept of of public public servants servants

has has noted, noted, in in contrast contrast to to Jesson's Jesson's view view of of the the bureaucracy bureaucracy no no

relationship relationship between between politicians politicians and and civil civil servants, servants, John John Roberts Roberts

fact, fact, if if one one wished wished to to study study the the argument argument in in the the context context of of the the

advocated advocated by by Douglas, Douglas, other other than than the the policy policy of of corporatisation. corporatisation. In In

Management Management did did not not mark mark a a distinctive distinctive break break from from those those policies policies

In In conclusion, conclusion, it it can can generally generally be be seen seen that that Economic Economic

much much to to their their hearts. hearts.

Treasury Treasury policy policy - one one which which Douglas Douglas and and his his colleagues colleagues took took very very

would would seem seem Jesson Jesson is is correct correct in in labelling labelling corporatisation corporatisation a a

have have been been espoused espoused in in Economic Economic Policy Policy Package. Package. In In this this light light it it

up up to to the the rigours rigours of of the the Treasury Treasury proposal, proposal, nor nor does does it it seem seem to to

proposed proposed corporatisation corporatisation of of Railways Railways in in Better Better Way Way do do not not stand stand

So So even even Douglas's Douglas's corporatisation corporatisation of of broadcasting broadcasting and and the the

predicted. predicted. 8 8 2 2

the the Minister Minister of of Finance Finance himself himself may may not not have have

each each policy policy leads leads naturally naturally to to another another in in ways ways even even

shows shows the the force force of of free-market free-market logic logic once once unleashed; unleashed; 51 51

when when analysising analysising the the content content of of Better Better Way Way in in Chapter Chapter Two, Two,

views views did did not not reflect reflect a a drastic drastic shift shift in in Rogernomics. Rogernomics. As As we we saw saw

Certainly Certainly the the misegenation misegenation of of Government Government and and Treasury Treasury

thinking thinking along along similar similar lines lines themselves. themselves.

have have prevailed prevailed unless unless Douglas Douglas and and his his colleagues colleagues had had been been

Treasury Treasury benches. benches. The The point point is is that that Treasury Treasury advice advice could could not not

surrounding surrounding the the Labour Labour Party's Party's initial initial introduction introduction to to the the

that that they they did did so so in in the the light light of of the the extraordinary extraordinary circumstances circumstances

Government Government did did take take advice advice from from Treasury, Treasury, and and is is only only it it natural natural

programme programme based based on on their their own own theories theories is is quite quite erroneous. erroneous. The The

decision-making decision-making process process in in order order to to implement implement an an economic economic

To To say say that that the the bureaucrats bureaucrats usurped usurped the the traditional traditional

consistent consistent with with a a free . economy.

coherent coherent and and comprehensive comprehensive policy policy which which was was to to be be more more

Way Way were were ironed ironed out out Douglas Douglas was was able able to to move move closer closer to to a a more more

throughout throughout the the next next few few years. years. Once Once the the idiosyncrasies idiosyncrasies of of Better Better

encapsulated encapsulated the the themes themes and and problems problems that that were were to to obsess obsess him him

statement statement on on Douglas's Douglas's economic economic thoughts thoughts it it undoubtedly undoubtedly

Although Although Better Better Way Way was was by by no no means means the the definitive definitive

Lange. Lange.

over over a a clash clash of of interests interests with with the the then then Prime Prime Minister, Minister, David David

nearly nearly a a decade decade later later when when he he was was forced forced to to resign resign in in late late 1988 1988

A A Better Better Way! Way! in in 1980 1980 that that has has landed landed him him in in so so much much trouble trouble

economics economics first first brought brought together together under under the the title title There's There's Got Got To To Be Be

Douglas's Douglas's strict strict adherence adherence to to the the principles principles of of 'more 'more market' market'

the the face face of of huge huge risks risks to to his his political political career. career. In In fact fact it it has has been been

Douglas Douglas was was moved moved to to champion champion unfashionable unfashionable policies policies even even in in

philosophy philosophy throughout throughout the the 1980s. 1980s. We We noted noted in in Chapter Chapter One One how how

broad broad consistency consistency in in Roger Roger Douglas's Douglas's economic economic and and political political

may may be be seen seen from from this this It It analysis analysis that that there there has has been been a a

CONCLUSION CONCLUSION

CHAPTER CHAPTER FOUR FOUR 52 52 53

Douglas had explicitly referred to the need to introduce more 'competition' and 'market-forces' into the New Zealand economy. It is in Better Way that we see the annunciation of ideas such as cost recovery for government services, tax reform, labour market flexibility, social welfare reform and export-led growth brought about through decreased import controls and devaluation. Thus in reference to devaluation in 1984, Neill Birss was moved to state "just how much this first implementation of Labour's economic policy reflected views that Roger Douglas has been expounding for years." 1 If some of Douglas's ideas at this stage seemed 'half­ baked', then their ingredients were certainly to gain more consistency in the 'pressure-cooker' environment of the first three years of the fourth Labour Government. In 1980 Douglas had probably not realized the full impact such policies would have on the economy as a whole. As Simon Collins pointed out, the force of free-market logic tended to steamroll once unleashed and take a direction which Douglas himself may not have predicted. Thus Rogernomics in practice came to include some policies such as corporatisation and wholesale deregulation which were not foreseen in Better Way. On the whole however, Rogernomics was clearly predetermined by Douglas and the Labour Party, and was not Treasury-inspired or the result of a 'bureaucratic coup'.

I N.Birss ed. Essays on the Economic Views of Roger Douglas p.5

Government Government 1984-87 1984-87 (Alien (Alien and and Unwin). Unwin).

and and ex-Labour ex-Labour Party Party President, President, Margaret 's Wilson's Labour Labour In In

Rogernomics Rogernomics edited edited by by Brian Brian Easton Easton (Auckland (Auckland University University Press), Press),

Zealand Zealand Centre Centre For For Independent Independent Studies), Studies), The The Making Making Of Of

Reshaping Reshaping New New Zealand's Zealand's Economy Economy edited edited by by Simon Simon Walker Walker (New (New

to to be be used used in in this this essay. essay. These These publications publications include include Rogernomics. Rogernomics.

policy. policy. Unfortunately, Unfortunately, these these books books were were not not released released early early enough enough

accounts accounts of of the the 1984-87 1984-87 Labour Labour Government Government and/or and/or it's it's economic economic

1989 1989 has has proven proven to to be be a a popular popular year year for for publishing publishing

POSTSCRIPT POSTSCRIPT 54 54

Wellington 1986. 1986.

Transition Transition In In Contemporary Contemporary New New Zealand. Zealand.

JAMES,C. JAMES,C. The The Quiet Quiet Revolution. Revolution. Turbulence Turbulence And And

December December 1981. 1981.

in in Political Political Science Science Volume Volume 33, 33, Number Number 2, 2,

JACKSON,K. JACKSON,K. Review Review of of 'There's 'There's Got Got To To Be Be A A Better Better Way!' Way!'

Auckland Auckland 1987 1987

The The 1980s. 1980s. A A Personal Personal View. View.

Toward Toward Prosperity. Prosperity. People People And And Politics Politics In In

DOUGLAS, DOUGLAS, R. R. & & CALLAN, CALLAN, L. L.

Wellington. Wellington.

Typescript Typescript held held in in General General Assembly Assembly Library, Library,

DOUGLAS,R. DOUGLAS,R. NZ NZ Labour Labour Party Party Strategic Strategic Plan Plan 1982-84. 1982-84.

Wellington Wellington 1980. 1980.

Problems. Problems.

ABC ABC To To Solving Solving New New Zealand's Zealand's Major Major

DOUGLAS,R. DOUGLAS,R. There's There's Got Got To To Be Be A A Better Better Way! Way! A A Practical Practical

Wellington Wellington 19 19 87. 87.

COLLINS, COLLINS, S. S. Rogernomics. Rogernomics. Is Is There There A A Better Better Way? Way?

Christchurch 1984. 1984.

Douglas. Douglas.

BIRSS, BIRSS, N. N. ed. ed. Essays Essays On On The The Economic Economic Views Views Of Of Roger Roger

BIBLIOGRAPHY BIBLIOGRAPHY 55 55

Government, Government, July July 1984). 1984).

The The Treasury Treasury Economic Economic Management. Management. (Briefing (Briefing to to incoming incoming

1982. 1982.

Labour's Labour's Quigley. Quigley. Auckland Auckland Metro Metro August August

ROGER,W. ROGER,W. Roger Roger Douglas: Douglas: Labour's Labour's Accountant, Accountant,

Wellington Wellington 1987. 1987.

Government Government Executive. Executive.

Enterprise: Enterprise: Restructuring Restructuring The The New New Zealand Zealand

ROBERTS,J. ROBERTS,J. Politicians, Politicians, Public Public Servants Servants And And Public Public

Zealand Zealand Listener Listener 8 8 December December 1973. 1973.

REID, REID, T. T. It It Wasn't Wasn't A A Hard Hard Decision Decision To To Make. Make. New New

Review. Review. Weekend Weekend Review Review 18 18 August_1989 August_1989

JESSON,B. JESSON,B. Lange's Lange's Fall Fall In In Making. Making. National National Business Business

Auckland Auckland 1988. 1988.

The1980s. The1980s.

Revival Revival Of Of The The Right. Right. New New Zealand Zealand Politics Politics In In

JESSON, JESSON, B., B., RYAN, RYAN, A., A., & & SPOONLEY, SPOONLEY, P. P.

Auckland Auckland 1987. 1987.

Wealth Wealth And And Power Power In In The The Eighties. Eighties.

JESSON,B. JESSON,B. Behind Behind The The Mirror Mirror Glass. Glass. The The Growth Growth Of Of 56 56