N.Z. OPPOSITION PARTY UNVEILS ECONOMIC POLICY
New Zealand's opposition National
Party said it would cut personal and business taxes and would
not regulate or control interest rates if returned to power.
    The economic strategy was unveiled by party leader Jim
Bolger one day before prime minister David Lange announces the
date of general elections, widely expected to be August 15.
    The National Party's tax policies included the abolition of
death and gift duties and the removal of indirect taxes on
basic food and doctors' fees.
    The most recent opinion poll, taken on June 20, gave Labour
a 26 point lead over National or eight points more than a month
earlier.
    National said that under its administration the New Zealand
dollar would find its level with "complementary fiscal and
monetary policies." The party did not elaborate.
    Controversy over National's economic policy erupted in
March when former prime minister Robert Muldoon said the party
had adopted a policy of a managed exchange rate.
    Bolger said then that the National Party would continue to
float the dollar.
    Since the dollar was floated by the Labour Party in March
1985 it has risen about 34 pct, cutting the export incomes of
farmers, who are traditional National Party supporters.
    The party said tight monetary policies alone would lead to
unrealistic exchange rates which would be out of line for
exporters unless they were supported by a low government
borrowing requirement, a shrinking government sector and
positive growth.
    It aimed to keep aspects of deregulation which have
benefitted New Zealanders while cutting government spending,
unemployment, interest rates, inflation and tax.
    The National Party intends to privatise totally the <Bank
of New Zealand>, <Development Finance Corporation>, <Tourist
Hotel Corporation>, <Petrocorp>, <State Insurance> and
<Government Life Office>, the party said.
    Other candidates for privatisation, such as <Air New
Zealand Ltd>, would be considered when the share market could
absorb them.
 REUTER
