A STATEMENT by the Rt Hon Sir Robert Muldoon, Prime Minister.  "Election 1984 is about strength and certainty in Government. National needs a strong mandate to continue to lead New Zealand out of the recession and into prosperity.  This election policy statement is a message to the people of New Zealand. It outlines our progress as a nation with National.  Under National, no group will stop that progress, not the left-wing leaders in the Trade Union Movement nor indeed any self-interest group in the community,  We have fought inflation together, we have boosted our export earnings and unemployment is dropping. As a nation we are winning.  We will preserve our national security and we will combat industrial anarchy.  The issue for New Zealanders is about our growth, prosperity and drive as a nation.  As leader of the New Zealand National Party, I have total confidence in New Zealand and the ability of New Zealanders to make the right decision.  INTRODUCTION  NEW ZEALAND is coming through the recession in better shape than many thought possible. Through responsible management the Government has encouraged and initiated major changes in the economy. The benefits of these are beginning to show. The economic indicators are now pointed firmly in the direction of growth. The Government has also protected the country from the worst effects of the recession. Generally our living standard has been maintained. Unemployment, while serious, has been low compared to other countries. Economic activity has been kept up by various support measures.  Now it is clear we are winning. The future looks good, but we must remember the warning. A false step at this stage could be disastrous.  HOW WE ARE WINNING.  New Zealand earns its living mainly by selling goods overseas. But it is more difficult than before to sell our goods to other countries at a fair price. They are less willing to buy and there are more countries trying to sell. For example, the USA and the EEC are now aggressively selling off huge amounts of highly subsidised butter, cheese and milk products on world markets, all in direct competition with New Zealand.  With the help of this Government the volume of goods we export has gone up. But we are  getting relatively less for them. And our imports are costing more. What we must do is make sure we are selling the best possible products and that they are the products the market wants.  As the world economy picks up we will find it easier to sell, at a better price. The Government is making sure that we are in the best possible shape to make the most of this improvement.  A CHANGING WORLD  ONCE we could take our main markets for granted. We call these our 'traditional' markets. The most important was Britain.  Times change, markets change. We have had to go looking for new markets, and we are finding them. But it is a different world now. We can take nothing for granted.  INFLATION  INFLATION IS DOWN. It has to stay down Rising costs within New Zealand pushed up the prices we were asking for our export goods. Costs had gone up so much that we were pricing ourselves off world markets. We were losing our competitive edge. Demand for our goods was falling.  Drastic action was required. The wage and price freeze was the answer. Now our inflation rate is around 4%. This compares favourably with our trading partners. In fact it is now better than most. We are regaining our competitive edge.  INCENTIVES FOR ALL  THE Oil SHOCKS of the 70's pushed up our import bill enormously. In 1972 oil imports cost less than a quarter or our overseas earnings from meat. In 1982 oil cost almost all our meat earnings. The cost of all imports went up because of the flow-on effect of higher oil prices throughout the world.  We had to increase our export earnings to meet these higher costs. The Government initiated a programme of export incentives and farm support measures. Without these we would not be exporting as much as we are now. Our standard of living would have dropped considerably.  We also had to save on imports. This is being done in several ways, particularly by the move to energy self-sufficiency.  The net earnings from energy projects alone will be $ 11.6 Billion by 1994/5.  INCREASE IN TRANSPORT FUEL SELF-SUFFICENCY 1979-1987.  THE PERSONAL INCOME TAX structure has been changed. The new structure is not only an incentive to save. It is also an incentive to earn  By 1983 virtually all full-time wage and salary  earners had benefitted substantially from this move.  Interest rates are coming down.  200,000 mortgages are already heavily reduced. This means more "income" for homeowners, farmers and others who have borrowed money.  TAX  THE GOVERNMENT'S total tax take, from all sources, is spread. For companies developing and exporting some tax is not 'taken', but is left as a support measure or incentive. Tax income and expenditure is as follows -  MORE COMPETITION  THE GOVERNMENT has made sure that there is now more freedom, more scope, and more competition in the economy than ever before. Some of the achievements in this area are:.  Closer Economic Relations with Australia (CER).  Road Transport Delicensing.  Air Transport Delicensing.  Delicensing of the meat processing industry.  Industry restructuring (current and ongoing.  many based on IDC studies) . Active encouragement (through incentives etc) of  industries with export potential . Moving from import licensing system to tariff  system.  Establishment of a Railways Corporation - Active promotion of, and involvement in, the major energy based projects « Voluntary unionism . Saturday trading . Extension of foreign exchange dealing licences.  Low inflation plus a more competitive economy equals increased export earnings and more jobs.  UNEMPLOYMENT  NEW ZEALAND has one of the lowest rates of unemployment in the world. This year alone, unemployment has dropped by 25%.  Our economy is now on the move. Strong employment growth is taking place,  In addition the National Government has initiated an ambitious training programme, designed to help people become more adaptable to the changing workplace.  For those young people who cannot find work we can now guarantee skill training under S.T.E.P.S.  The two main training programmes for young people are:  S.T.E.P.S. (School leavers Training and Employment Preparation Scheme)  - $16.5 million to be spent on S.T.E.P.S. this year.  Y.P.T.P. (Young Persons Training Programme)  - $8.5 million to be spent on Y.P.T.P. this year.  At the same time National has set in place a variety of measures to encourage both private and public sector employers to create additional jobs.  Economic growth, however, is the only ultimate solution to unemployment. And this is happening.  THE YEARS AHEAD  NEW ZEALAND used to earn most of its money from a limited range of farm-based products. Now this has changed. We have moved to a new earning base. The growth of new industries, plus the growth in the use of our indigenous energy resources for fuel purposes, is resulting in the improving terms of trade (ie. the cost of imports compared to the price of earnings from exports).  PROJECTS: Synthetic gasoline, refinery expansion, ammonia urea plant, methanol plant, Tiwai point expansion, N.Z. steel expansion, N.Z. rail electrification, Condensate production, LPG, CNG, Gas reticulation and McKee and other onshore oilfields  SAVINGS ON IMPORTS  _SAVINGS_ in imports are of great importance particularly in the area of transport fuels. Savings in the transport fuels area are coming mainly from CNG and LPG usage, the Synthetic Petrol Plant and the Oil Refinery expansion in Whangarei. The net earnings from energy projects alone will be $11.6 Billion by 1994-95. Of particular importance is the fact that in future we will not have to rely on Middle East  ROAD AHEAD TOO RECOVERY  MANY COUNTRIES, or collection of countries (eg the EEC), practise protectionism. This makes their industries inefficient and expensive because they do not have to be competitive.  CER is an agreement, initiated by National to break down these trade barriers between our country and Australia. In effect it gives the New Zealand producer and manufacturer a 'domestic' market of around 20 million people to aim at by 1986.  New Zealand is already benefitting substantially from CER. Exports to Australia are 27.6% up on last year. New Zealand exporters are gaining a greater share of the Australian market. And exports mean jobs.  MANY COUNTRIES are committed to breaking down trade barriers throughout the world. This is an extremely ambitious exercise, but the aim again is efficiency.  New Zealand could remove all barriers between itself and the rest of the world, but it cannot make the rest of the world remove their barriers. To try and get the best deal for New Zealand exporters, and for the New Zealand consumer as well, the Government is committed to the concept of 'international free trade'. Over the next few years, in consultation with interested parties, we will be moving towards the following goal. In doing this, however, we will not sacrifice efficient New Zealand industries.  IF WE FOLLOW NATIONAL'S PLAN  New Zealand's future prosperity is guaranteed. This will mean a rising standard of living for all. It will mean jobs for those unemployed now, and jobs for our children as well. It will also provide more for education, health care and social development and security in general.  But we have to tread carefully. A wrong move now could be disastrous.  It is absolutely crucial that we earn more overseas funds, and save more by cutting down on imports and becoming as self-sufficient as possible, particularly in the area of transport fuels. More overseas funds are required to boost the number of jobs available in New Zealand.  The Government has moved us into the most significant restructuring phase in our history. Out of it are coming highly efficient, competitive industries, producing the goods our overseas customers want. Already we are earning more overseas funds.  At the same time the domestic economy is becoming more efficient, and the Government's moves to make us energy self-sufficient are progressing rapidly. New Zealand, you're winning.