Back to Controls?

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

Back to Controls?

It is probable that Mr Nash has pitched his promises high enough to have a chance of deceiving the electors into expecting something for nothing without any clear idea of how the magic could be performed. But the main lines he would have to follow are clear enough. Strict import contrbl, reducing the demand for raxy materials as well as finished goods, would be introduced, with the maintenance of factory jobs a more important factor than the utility of imports in the allocation of licences. The direction of labour, probably politically impossible in peace time, would not be necessary, since much the same effect could be achieved through control of imports and of bank overdrafts. The Government would not decide what job a man should have but what job he should not have. The failure of price control in this inflationary situation would be concealed by the payment of subsidies,- which, of course, consumers provide for themselves out of taxes in the long run. Taxation would be increased. In spite of these measures, shortages, the black market, under-the-table payments, and a regrowth of bureaucracy would return to a New Zealand that has almost forgotten about them in the last eight years. Whatever party

advocated an inflationary programme with such uncomfortable implications we would have to oppose it; and that, on this occasion, is our principal reason for opposing the programmes of both the Labour Party and the Social Credit Political League. That one of them advocates socialism and that the pther unwittingly serves socialist ends is purely incidental. The immediate costs of the Labour policy, costs to be met principally by working people (who will get precious little of the income tax bribe), will probably weigh more with the electors than long-range effects. Nevertheless, the future should be thought of. Even supposing New Zealand could stand the sudden expansion of • bank credit proposed by Mr Nash, there must be some limit—even the Social Creditors admit that. Once that limit has been reached and dissipated in a post-election spree New Zealand would be desperately short of capital needed for development. Mr Nash practically admitted as much, though he did not seem worried, when he told a Hamilton audience that the money for Labour’s promises would come from the £lOOO million public and private capital expenditure forecast by the Prime Minister (Mr Holyoake) for the next four years.