Lange to Resign as Prime Minister of New Zealand

Prime Minister David Lange said today that he is resigning but plans to remain a member of Parliament.

Lange, 47, who underwent a heart operation last year, told a news conference that medical advice had influenced his decision to resign.

Lange, prime minister since 1984, said he will tender his resignation to Governor General Paul Reeves on Tuesday and will then ask the ruling Labor Party to elect a leader and deputy leader.

Lange said he expected the new prime minister to name a new Cabinet by the end of the week. He said he would not take a Cabinet post himself.

Lange, who used to relax by racing motor cars before an operation to widen a heart artery in July, 1988, said his doctor had told him: “My not continuing (as prime minister) would be compatible with my health.”

There was no immediate indication if Lange’s decision to resign was connected with a bitter row with former Finance Minister Roger Douglas that has threatened to split the Labor Party.

Lange dismissed Douglas, once his closest ally, last December over the scope and speed of New Zealand’s drastic economic reforms.

Douglas has been fighting back ever since and last week won a new place in the Cabinet after topping a poll among Labor members of Parliament.

Lange responded with a pledge that Douglas would not be given a portfolio that enabled him to influence economic policies.

The New Zealand dollar fell sharply after Lange’s resignation was announced.