BROADCAST “AN ALIBI”

Press, Volume C, Issue 29444, 21 February 1961, Page 14

BROADCAST “AN ALIBI”

Mr Nordmeyer Critical

(N.Z. Press Association) WELLINGTON. Feb. 20. “The Prime Minister’s broadcast may be described as the National Government’s alibi for not giving effect to its extravagant election promises,” said the Minister of Finance in the Labour Gov, ernment (Mr Nordmeyer) UP night “It promised immediately on becoming the Government to reduce taxation, direct and indirect It now appears that the public will have to wait for at least three years before this pledge is redeemed. “It promised to widen'the doors to further imports, including motor-cars. It has now discovered that the Labour Government’s import policy, instead of depriving the country of goods which it could well afford to pay for. has actually imparted more than it should. “Indeed, the Prime Minister complains that Labour’s import control policy Chas hot been ’properly and effectively used.’ So we are to have not less import control but more. Monetary Reform “The ‘National Government promised to introduce monetary reform, and on this ground urged Social Crediters to support it. It now condemns the use of Reserve Bank credit, as a form of ’deficit finance’. It is true that Mr Holyoake does not promise to become a total abstainer. He will merely abstain from ‘undue reliance’ on it In other words, he will become a moderate imbiber. It would be interesting to know to what point and in what circumstances reliance on the Reserve Bank becomes undue,” Mr Nordmeyer said. “The so-called deficit in the Public Accounts could have been liquidated before the end of the financial year if the Government had followed the steps which had been initiated before the election.” It had preferred to delay its approach to the overseas loan market until after the financial year had closed, Mr Nordmeyer said. "It will thus succeed in creating the illusion of a deficit in the Public Accounts which Will provide It with an excuse for not doing what it solemnly promised to do, and it will then proceed to balance its accounts from the beginning of next financial year by various overseas borrowing and thus demonstrate its adherence to the principles of ‘sound finance.’ Four Questions “Mr Holyoake’s broadcast was remarkable not so much for what he said as for what he left unsaid. “Why did he not say that prices of butter, cheese, lamb, and wool are today all higher than at various times in 1958. When he claimed that there was no ‘crisis’ in New Zealand’s economy? “Why did he not reveal that preliminary steps had been taken before the election to balance the over-all Government account and that the National Government has for political purposes deliberately delayed implementing those steps? “Why did he not say that although prices had risen by an average of 3 per cent, during the last three years, this is less than half the average increase which took place during the National Government’s eight years of office? “If inflation has caused the price rise -under Labour, what caused the price rise under National?” asked Mr Nordmeyer.

“It is satisfactory to know that the National Government has not at present any intention of interfering with the extension to social security carried out during Labour's term of office.

Housing Policy “It is deplorable, however, to find that housing is to be sacrificed. If drastic reductions are to be made, this will have damaging effects on the economy. It will be a bitter disappointment to those who supported the National Party believing in its promise to continue 3 per cent, loans and the capitalisation of the family benefit. “Apart from the reduction in housing, it appears that the policy of the previous Government is to be continued. That is the most pleasing feature of the Prime Minister’s message,” said Mr Nordmeyer.