FINANCIAL POLICY

Press, Volume XCVI, Issue 28429, 8 November 1957, Page 16

FINANCIAL POLICY

Defence By Mr Nash

(New Zealand Press Association) HAMILTON. November 7. A reply to criticism of nis monetary policy by the Prime Minister <Mr Holyoake). paiticularly of the capitalisation ot the child allowance and the £lOO rebate on income tax. was made tonight by the Leader of the Opposition <Mr Nash! in an electoral address at Hamilton. This, the first political meeting in Hamilton featuring an outside speaker, attracted a tuu attendance, and Mr Nash received a rousing reception, including the singing of “For He s a Jolly Good Fellow” as he reached the stage. , Referring to criticism ot Labour’s decision to capitalise the family benefit, which would be increased from 10/- to 15, - *f Labour were elected. Mr Nash said he was surprised that Mr Holyoake had been reported as saying that Labour would not be paying the parents their full amount. , ... . “I think the people will be getting a good deal,” he said. “In fact, I am perfectly willing to pay Mr Holyoake 15/- a week for 16 years if he will give me £5OO tomorrow. “But the money is not, the important thing,” he said. “This scheme has been devised to enable young parents to have their own homes. There is nothing more important to New Zealand, or for that matter to the world, than for young children to be brought up in good homes with a background of steady, happy, family life. “State Responsibility” “It is a State responsibility, we say, to see that houses are available for the people, and the building of houses should not be the prerogative of those with money to make more profits from them.” Mr Nash said that all the Labour policy was based on the sacredness of the home. Mr Holyoake asked where the money was to come from. Not three months ago. Mr Nash said, Mr Holyoake had said publicly that New Zealand would have to spend £1.000,000.000 over the next four years in capital development. He had said that £370,000,000 of this would be Government expediture. "We say, take the money out of some of that. Homes for the people are the most important things New Zealand can have,’’ said Mr Nash. £lOO Rebate Referring to Mr Holyoake’s criticism of the £lOO rebate on income tax in February of next year, Mr Nash said it certainly would be an expensive item. He added: “However, it would not be as expensive as the 25 per cent. rebate offered by the National Party, plus the dropping of the social security tax on income other than salary and wages as first mooted by Mr Holyoake’s party. You and I know who deserves, the £lOO rebate. People with plenty of money should not escape their dues.” Mr Nash said he had no doubt that, properly managed, the finances of the country could easily stand the Labour Party’s policy decisions. When he was first negotiating the Social Security Act, the first year’s payment came to £18,750,000 and the Opposition, as well as people in London, said New Zealand could not possibly afford it, said Mr Nash. “We easily afforded it, and today we are spending £69,000,000 on social security,” he said. “Have no fear, the money can and will be found for the tax iebate, and the country will be better off than under a scheme of rebating social security on income other than wages.”