The 1954 split of the Australian Labor Party saw a marked difference of opinion between Gilroy and Archbishop Daniel Mannix of Melbourne, who backed B. A. Santamaria's "Movement" (the episcopally sponsored Catholic Social Studies Movement). Gilroy avoided direct political comment and believed that the Church should not become involved in politics. However, like most other Sydney Irish Roman Catholics, he had grown up as a supporter of the Australian Labor Party. Moreover, he was a confidant of Roman Catholic Labor Premier of New South Wales Joseph Cahill. He firmly opposed Santamaria's activities and banned the distribution of his movement's literature in Sydney churches. As a result of the close relationship between Gilroy and Cahill, there was no split in the New South Wales Labor Party, as there had been in Victoria and Queensland.