GOVT. “NOT IN HUNT

Press, Volume CII, Issue 30289, 15 November 1963, Page 16

GOVT. “NOT IN HUNT

Mr Shand On Promises (From Our Own Reporter) KAIKOLTRA, November 14. “On the basis of promises, the National Party is not in the hunt.” said the Minister of Labour and National cand.date for Marlborough, Mr T. P. Shand, at a meeting at Kaikoura tonight. "If I believed everything Mr Nordmeyer has said, I guess I would vote Labour myself,” he said. Mr Nordmeyer had given his party a “let-out” by saying that all the promises were capable of realisation “if everyone made a determined effort to expand the national income.” "In 1957 the phrase was ‘given normal circumstances,’ ” Mr Shand said. "There always is a phrase like that. But at least Mr Nordmeyer’s ability to make such magnificent promises is an acknowledgement that our economy and industry are at present in a sound condition which is more than anyone could say in 1960 after three years of Labour Government." Mr Shand said that the Labour promises added up to £52 million in higher expenditure and reduced taxation. The only way to gain anything really was to produce the goods before spending the money. New Zealand was chronically short of overseas funds with which to purchase the things New Zealanders could not make economically. This, at times, had forced New Zealand to undertake uneconomic manufacture in this country. Special attention must therefore be given to industries capable of earning overseas funds.

Outlining the policy which must be followed to produce extra income. Mr Shand said there were two traps into which a government might fall. It must not accept the narrow, orthodox view of 30 years ago, as Mr Nordmeyer had done in 1956. It must not be driven by budgetary difficulties to strangle the economy and bring development to a halt. Second, it should not use its power to create money in a way which would destroy people’s belief in values. “Money is a servant, not a master, and we must not expect too much of it," Mr Shand said. "The only true source of finance for the capital equipment of the community is the savings which people are prepared to make.”