Labour election promise on freeze ‘broken’

Press, 20 August 1984, Page 28

Labour election promise on freeze ‘broken’

PA Wellington The three-month price freeze by the Government broke one of Labour’s election promises, National’s spokesman on commerce, Mr Paul East, has said. The Government used the Economic Stabilisation Act to introduce the freeze in spite of promising during the election campaign that the act would be repealed, he said. The Minister of Justice, Mr Palmer, had described the act as Draconian, and the Minister of Trade and Industry, Mr Caygill, had called it pernicious.

“Apart from attacking the consitutional niceties of National’s freeze regulations, Labour in Opposition said a freeze would never work,” Mr East said. “Yet Labour in Government has brought down regulations that are almost identical. “The new Government has been keen to talk about constitutional principles. Its own actions show that in office, these principles are conveniently flexible. Any credibility the Labour Government once had on such matters is destroyed.” Mr Palmer said on Wednesday that all policy

pledges on repealing legislation would be carried out, but not overnight. Repeal of measures such as the Economic Stabilisation Act would be a long legislative procedure. Labour had undertaken to review existing financial regulations and controls under the act and the Reserve Bank Act and eliminate as many as possible. The Economic Stabilisation Act would then be repealed, with any regulations made under it found to be necessary preserved by an act of Parliament, MrPalmer said.