BUDGETS FOR GROWTH

Press, Volume CII, Issue 30294, 21 November 1963, Page 19

BUDGETS FOR GROWTH

—H. R. Lake (National) As your member of Parliament, I have regarded your problems as of first importance, and I have taken every opportunity to ensure that your representations always receive a fair hearing. If re-elected I shall continue to work vigorously for the best interests of the electors of Fendalton, the citizens of Christchurch, and the South Island.

I would like to remind you ‘ that this election is a crucial j one, and the result may well set the pattern of our: country’s progress for manyi years to come. It is vital) to everyone that every) elector should examine care-1 fully the policies of the; parties and vote on Novem-: ber 30. We live in a) democracy and it is up to all of us to see that our rights of a free vote are taken seriously and safeguarded. In. the last three years, the National Government has administered the country in the interests of all sections of the community and has introduced comprehensive, ! economic and financial measures to increase the rate'i of economic growth. "Similar Labour View” The National Government outlined the basis of these I policies in the last three I Budgets; but it is only I recently that the Labour I Party has decided to adopt a ; somewhat similar view, i Hence its "new look” policy, which involves promises estimated to cost the country £5O million a year. IE Labour is to maintain the level of Government expenditure, quite apart from financing normal increases in expenditure each year, it will have to finance the £5O million either by borrowing, which would be impracticable. or by Reserve Bank credit, which would be inflationary, or by increasing the rate of death duties and direct and indirect taxation for individuals and for companies. | The situation bears a I strange resemblance to the | promises made by Labour in ) 1957 and the sorry aftermath | in 1958. The National Government is pledged to carry out its ‘ policy of progressively reducing the rates of taxation, but in such a way that the stability of 'the economy is not endangered. In the last three years National has given taxation concessions amounting to £26 million, and would have been able to do more but for the highly critical inflationary situation that existed in 1961. National Remedy

National remedied the critical situation in 1961 without taking the sort ot action that was taken in 1958. At . that stage, the steady-does-it policy was implemented to avoid imposing harsh tax measures and recalling import licences. This policy has been most successful. The economy is now in better balance than it has been for very many years, and the incentive measures introduced in the 1962 and 1963 Budgets are already having a dramatic effect on production and productivity. Under a National Government these policies will be continued and expanded and everybody will share in the increased prosperity. Those electors voting for the first time have a particular responsibility. They can be assured that a National Government will promote progressive policies, ensure reasonable stability, and encourage thrift and initiative. Under a National Government the country can be assured of progress without the hampering restriction of State controls and direction.