— R. Muldoon, July 11.

This surely must leave the intellectual credibility of most New Zealanders and the education system in some doubt if what our leader says is true.

In fact it is not. Our economy is as controlled as an ageing vessel, boards creaking, shortly before it sinks. It is performing increasingly badly in all areas. Overseas markets are closing on New Zealand as other developed countries attempt to correct their own problems. The OECD predicts a "slowing down" in the capitalist world i.e. low growth, lower real wages and large unemployment.

In spite of this, the OECD predicts the overall inflation rate to increase by 1.5% in major economies [and probably more in secondary economies such as ours].

Background of Economic instability

New Zealand cops the lot in all these cases — closing markets, rapidly rising import prices, increasing double diget inflation, a prediction of a new $1000 M balance of payments deficit [from Institute of Economic Research], unemployment, equivalent to 35,000, high emigration of skilled workers and professionals, and small and medium businesses laying off staff and some-closing down. Despite all this, company profits are increasing.

This is the context which the National Party Conference should be seen in. The urgency of party Chairman Chapman's address [apart from his lavish praise of PM Muldoont] was a good indication of the panic which big business [Chapman is Chairman of the Board of BNZ] is in in the present situation. His speech was a tough right wing offensive of the 'slackness' of New Zealand capitalism. During his address, he attempted to give the impression that the failure of New Zealand capitalism was due to the lifestyle of working people. A preoccupation with rugby, racing and beer would have to be replaced with the ideology of profits, productivity and exports. He stopped short of saying that even if all three were achieved, history shows that this does not necessarily effect a rise in workers standards of living. What history does show us is that late capitalism must push real wages down to survive.

Profits a Dirty Word?

Chapman went on to say that profits must not be a dirty word [how much did BNZ make last financial year?].

'Profits', though, have become a dirty word for many good reasons. It is the drive for profits which make workers work longer tours for less and less real income; it is profit seeking which means inevitable booms and slumps which lay off millions and causes immense suffering in society; it is profits which have meant large scale destruction of grain, stock, machines and factories when they prove uneconomic to run; it is profits that hold up technological and social progress because it may be "unprofitable".

Chapman is a traitor by blaming the economic crisis on NZ people and deceiving us all by suggesting that prosperity will come with a lowering in the already low living standards.

Chapman Adrift of Party

Chapman later demonstrated the unpopularity of his views when he tried to log roll a resolution congratulating the economic performance of the parliamentary party. This was lost and instead a resolution on more tax relief for lower and middle income families was passed.

This is a clear illustration that the National Party, contrary to popular myth, is not made up of one wealthy class. It too, is composed of different class interests big business [Chapman et al], small business [libertas], farmers, professional classes [Pol-link]. It is surely a sign of the times that big splits are developing in the Party over economic and political matters.

Splits Emerging

This does not mean that the Party will develop formal splits other than those such as Libertas and Pol-link. In the near future the Party can expect to remain intact due mainly to the present leadership and the undemocratic structure of the Party. In the long term though, the National Party will be unable to cope with the more right-wing elements and these may brake away. This will be especially so if Muldoon is replaced withsomeone incapable of appeasing the rightwing with tough speeches and jargon to match.

The other major factor in uniting a very "middle of the road" party is their opposition to socialism. This fact shows the power of ideology as the definitions of socialism are as varied as those of the

Labour Party. Some see creeping socialism in the form of the welfare state, others see it in the new state capitialist nations of Eastern Europe.

Nevertheless, it is a powerful tool exploited very effectively by Muldoon to keep the Party thinking that competition and free enterprise are somehow possible now.

Nats Intimidate Unions

The long awaited ballots are to be started, announced Muldoon. He went on to state that he hoped unions would co-operate with Government — it would be so easy to pass a law enforcing non-compulsory unionism. The TV cameras flashed to Minister of Labour, Gordon, who looked rather pale and raised a heavy sweat.

The ballots will be started on small, reasonably well-organised unions without women workers to give a compulsory unionism vote. This can then be used as a weapon by the Government for proceeding with the ballots.

The move toward voluntary unionism has been engineered to undermine the political power of organised labour to bargain wages and living and working conditions. It is quite deliberate and was done in Germany and Italy in the early thirties, Government hopes to set union against union, and unionised labour against state organised labour.

Is open Government possible?

A remit which was, somewhat surprisingly, allowed to reach the conference demanded the opening up of information from the public service in an attempt at what may be laughingly described as "open government". Yet the significance of the proceedings was the widespread support gained by the remit — perhaps aided by Michael Minogue's recent statements on the subject.

The remit was lost, but only narrowly indicating that National Party members are not overly dissillusioned by parliamentary forms of government.

Another area where gains were made was in the field of abortion. Although a remit calling for a referendum on the subject was defeated, many of the arguments against the remit were not overtly anti-abortion. A better indicator perhaps was the election of a member of ALRANZ [devoted to free, safe, legal abortion] as Womens Party Vice-President.

Nats Out of Touch

In a Dateline interview, Muldoon stated that the National Party's strength lay in it's links with the 'grassroots' of the party and with the people.

He may be dreaming. The National Party hierarchy came in for much criticism at the conference especially over economic policy — National match winner in 1975. Many remits were not considered and Muldoon publically stated that he dissaproved of members challenging sitting MP's for candidacy.

The crunch, however, came in Muldoons concluding speech. When referring to remits passed at the conference he remarked . . and we will certainly consider these remits when forming policy for the mext election". It almost makes the Labour Party seem democratic.

Muldoon cannot seriously think he can fool New Zealanders that his promises of economic miracles can be fulfilled. The major task for the National Party in the next 15 months will be to restrain Muldoon and start thinking of some new election bribes.

— David Murray.