The Press FRIDAY, NOVEMBER 29, 1957. THE ELECTION ISSUE

Press, Volume XCVI, Issue 28447, 29 November 1957, Page 14

The Press FRIDAY, NOVEMBER 29, 1957. THE ELECTION ISSUE

Ordinarily this election campaign would have been contested by a National Party believing in the greatest possible individual freedom consonant with the public good and a Labour Party dedicated to socialism and centralised control. In those circumstances “ The Press ” would have supported, strongly, the National Party because, in our opinion, its administration is better suited to New Zealand life and to present conditions, though conceding that there was an arguable case for socialism. But the Labour Party has chosen to overshadow what should have been the fundamental issue with a policy for which we can see no case whatever.

It is a policy of rash and unprecedented profligacy serving no political theory only Labour’s anxiety to win the election at any cost to itself and the country. It would not matter whether Labour solemnly renounced socialism; we would still have to advise

electors as best we can of the dangers of this high bid for power. Indirectly, this policy does serve the socialist cause, since in practice it would necessitate the introduction of the controls and restrictions that the electorate rejected in 1949. A sudden increase in purchasing power of £lB million before the end of this financial year, the distribution of another £lO million in additional family allowances next year, and an immediate contingent liability of rio less than £ 135 million for the payment of the family allowance in advance on the “ baby “ mortgage ” would wreck New Zealand’s economy unless drastic action were taken. Overseas exchange reserves would vanish almost in a night if the sudden demand for imports was met; New Zealand manufacturers would scramble uneconomically for greater shares of scarce labour and resources; prices would soar; and rationing by traders’ favour would be inevitable.