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

 

Snell Sale Peters Out: Singlet Withdrawn From Sale

“We believe the item was offered for sale in good faith, but our inquiries have shown that the singlet is not the one worn by Peter Snell at the 1964 Tokyo Olympic Games.” More>>

ALSO:

Bodega: Venue Closing At The End Of The Year, After 25 Years Of Music

"It is with considerable sadness that, for reasons beyond our control, we regret to announce the closure of Bodega’s doors at the end of this year, after 25 years of faithful and committed service to live music in Wellington." More>>

Scoop Review Of Books: Women At The Centre

In the first chapter of her epic History of New Zealand Women, Barbara Brookes places a version of the Māori creation story alongside that of the Pākehā colonists, setting the scene for how each society saw women. The contrast is startling. More>>

In Auckland Art Gallery: A Tour Of Duty

I had already started my journey through the exhibited collections when an audio announcement about a guided tour to embark shortly from the foyer was made, I decided to join in. Why not? More>>

Art: ‘Holiday’ Wins IHC Art Awards

An intricate embroidered cushion by Wellington artist Jo-Anne Tapiki has won the 2016 IHC Art Awards and $5000. Jo-Anne started working from IHC’s Arts on High studio in Lower Hutt 18 months ago and this is the first time she has entered the competition. More>>

‘Quasi’: Christchurch Art Gallery Reveals Rooftop Sculpture

Christchurch-born and internationally renowned artist Ronnie van Hout has had a huge hand in Christchurch Art Gallery's latest outdoor installation. More>>

Get More From Scoop

 
 

LATEST HEADLINES

 
 
 
 
Health
Search Scoop  
 
 
Powered by Vodafone
NZ independent news