National Sees Close Links (Press, 30 May 1985)

In the early stages of the by-election campaign, the Labour Party has chosen to underplay various issues, in contrast to National Party leader Mr McLay, who has addressed a range of concerns primarily linked to a prolonged drought affecting both rural and urban communities in the Timaru electorate. Mr McLay believes that the drought has resulted in significant business declines in Timaru due to reduced spending by farmers, which he argues has not been adequately addressed by the Government. He criticises the Labour Government’s handling of drought relief, asserting that the stringent criteria for assistance have left many farmers in severe debt, exacerbated by two droughts within three years at high interest rates. Regionally, Mr McLay claims that recent government budgets have effectively destroyed irrigation projects, and he predicts no new irrigation schemes will emerge under Labour's tenure. The National Party, under his leadership, has promised to establish new irrigation criteria aimed at facilitating the development of such major schemes, which Mr McLay argues would benefit not only farmers but also create jobs and support local economies. He also highlights the issue of electricity pricing, pledging that a National government would restore a 25 percent concession for South Island industrial users and a general 10 percent concession, maintaining that the South Island’s electricity production costs warrant this support. Mr McLay criticises Labour for allegedly breaking a promise made by Prime Minister Mr Lange regarding power price reductions in 1983. Taxation is another focal point of Mr McLay's campaign, where he notes widespread discontent over the goods and services tax (GST) and other taxes affecting national superannuation. He suggests that while National supports a shift from direct to indirect taxation, GST is not a viable option, especially if it only serves to fund social welfare benefits that should not be needed by wage earners. The National Party also advocates for a return to a universal pension, reaffirming the principle that those of qualifying age should receive a pension without penalties, despite uncertainties surrounding future taxation implications. Additionally, Mr McLay plans to address various other issues during the campaign, including rising food prices and interest rates, making the case that the government could lower rates while managing its deficits effectively. Other topics of interest include New Zealand's international relations, particularly concerning the ANZUS relationship, disarmament, compulsory unionism, and sporting contacts. Taking up Mr Lange’s challenge regarding leadership, Mr McLay expresses confidence in his record, criticizing the current government's performance in managing inflation, interest levels, and food prices. He acknowledges internal differences within the National Party as a typical opposition issue rather than a policy disagreement. Mr McLay anticipates that the by-election will spotlight differing stances on key social issues, particularly homosexual law reform, given the contrasting views between the major parties and third-party perspectives.

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