News Video | Policy | GPs | Hospitals | Medical | Mental Health | Welfare | Search

 


Grey Hospital re-build funding explained

MEDIA RELEASE

Wednesday 13 August 2014
Grey Hospital re-build funding explained

Recent discussion about the funding of the Grey Hospital re-build may be confusing for some people but the position is actually very simple, according to David Tranter, Democrats for Social Credit Party’s Health Spokesman.

The proposed $74 million loan (including the latest increase of $7 million) at an average of 5 percent interest for 23 years will cost $85 million interest.

On the other hand, if government used the Reserve Bank (which it is entitled to do under the Public Finance Act 1989) to provide this at 0.15 percent (the administration rate which is applied to the government's existing DHB loans) the total outlay in interest would be $2.55 million, a saving to the DHB and the taxpayer of $82.45 million. Of course, in either case that leaves the matter of the $74 million debt hanging over the DHB.

Given that the DHBs are always short of money one can only presume, in the absence of any comment from Government, that they intend the DHB to be permanently stuck with this debt - and the interest. Imagine what health services could be provided on the Coast with an extra $82.45 million over 23 years.

Now for something equally interesting. A 2012 report by the International Monetary Fund analysed a proposal by eminent economists Henry Simons and Irving Fisher who stated, “Allowing the Government to issue money directly at zero interest, (in New Zealand's case, through the Reserve Bank) would lead to a reduction in the interest burden on government finances and to a dramatic reduction of (net) government debt.....". In other words, a win-win situation for everyone - except the overseas-owned commercial banks who rake in the profits.

So whose side are successive New Zealand governments on - Kiwis or the international rip-off merchants? Why won't Bill English - and a succession of past finance ministers - adopt this method of funding? Why do they force DHBs - and other organisations undertaking public works - to operate under this crippling finance system? And again I ask, why have Tony Ryall and Bill English evaded my questions on this matter for two years?

Do they want DHBs like the West Coast's to become bankrupt whereupon they can blithely claim that since DHBs have "failed" they must be put up for sale to the highest bidder as another step in successive governments' over-riding privatisation agendas?

ENDS

© Scoop Media

 
 
 
 
 
Culture Headlines | Health Headlines | Education Headlines

 
Scoop Review Of Books: Excerpt - Ice Bear: The Cultural History Of An Arctic Icon

“During the last decade the image of the polar bear has moved in the public imagination from being an icon of strength, independence and survival in one of the most climatically extreme of world environments, to that of fragility, vulnerability and more generally of a global environmental crisis.” More>>

NZ Opera: Max Rashbrooke Reviews The Mikado

So concerns about the work of the piece have to be addressed; but they are complex, and probably better handled in another post. So what about this production itself? More>>

Scoop Review Of Books: The Typewriter Factory

I finished reading Don’t Dream It’s Over not long after it came out last August. I even started writing a review, which took something of an ‘I’m sorry people, but it’s already over’ approach. I’ve been pretty negative about journalism as it’s practiced in the mainstream (or MSM, or corporate media or liberal media or whatever terminology you prefer) for quite some time (see for example Stop the Press), and I believe the current capitalist media model is destructive and can’t be reformed. More>>

Sheep Update: Solo World Shearing Record Broken In Southland

Southland shearer Leon Samuels today set a new World solo eight-hours strongwool ewe-shearing after a tally of 605 in a wool shed north of Gore. More>>

ALSO:

Howard Davis Review: Dick Frizzell At The Solander Gallery

One of the most influential and celebrated contemporary Pop artists working in New Zealand, Dick Frizzell is mostly known for his appropriation of kitsch Kiwiana icons, which he often incorporates into cartoon-like paintings and lithographs. Not content with adhering to one particular style, he likes to adopt consciously unfashionable styles of painting, in a manner reminiscent of Roy Lichtenstein. More>>

Old Music: Pop Icon Adam Ant Announces NZ Tour

Following his recent sold out North American and UK tours, Adam Ant is celebrating the 35th anniversary of the release of his landmark KINGS OF THE WILD FRONTIER album with a newly-remastered reissue (Sony Legacy) and Australasian tour. More>>

Get More From Scoop

 
 

LATEST HEADLINES

 
 
 
 
Health
Search Scoop  
 
 
Powered by Vodafone
NZ independent news