Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Democrats Call for New Funding Mechanism


Date: Tuesday, 14 November 2006

Democrats Call for New Funding Mechanism

It is amazing in light of existing experience and knowledge that the Labour government remains in denial of a mechanism which injects money into the economy as interest bearing debt and when government borrows it does so through that mechanism.

Interest on that debt based ‘money’is paid out of our ever increasing burden of tax or in added charges such as fuel ‘levies’ or tolls.

Voters should note the NZ Herald front page item (13/11/06) as an example of the issue, whereby the added interest and administration burden on the primary cost of completing Auckland's western ring route amounts to 2.8 billion dollars.

If the Democrats proposed funding mechanism was in place to provide that funding free of interest there would be no need for the tolling infrastructure and the users/taxpayers/ratepayers would be 2.8 billion dollars better off.

Of course when anyone mentions changing the 300 year-old concept of building our economy on the back of interest bearing debt a few people, especially some politicians and economists, choose to close ranks and become extremely defensive.

Democrats say their concern should be on the huge burden our kids and grandkids will have to carry if the present system prevails.

The point is that if governments can (and do) sanction a privately owned interest bearing debt mechanism why not sanction one to create interest free funding for our nations infrastructure, as an alternative to the existing methodology or should that read mythology?

People (voters) need to question why our politicians are still failing to find solutions to the same issues that were extensively debated 22 years ago at the 1984 Lange/Labour Government Economic Summit.

The answer is that a new economic approach is needed and only the NZ Democrats are promoting it.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Sector Opposes Bill: Local Government Bill Timeframe Extended

The Minister of Local Government Peseta Sam Lotu-Iiga has asked the Select Committee to extend the report back date for the Local Government Act 2002 Amendment Bill (No 2). More>>


Breed Laws Don’t Work: Vets On New National Dog Control Plan

It is pleasing therefore to see Louise Upston Associate Minister for Local Government calling for a comprehensive solution... However, relying on breed specific laws to manage dog aggression will not work. More>>


Not Waiting On Select Committee: Green Party Releases Medically-Assisted Dying Policy

“Adults with a terminal illness should have the right to choose a medically assisted death,” Green Party health spokesperson Kevin Hague said. “The Green Party does not support extending assisted dying to people who aren't terminally ill because we can’t be confident that this won't further marginalise the lives of people with disabilities." More>>


General Election Review: Changes To Electoral Act Introduced

More effective systems in polling places and earlier counting of advanced votes are on their way through proposed changes to our electoral laws, Justice Minister Amy Adams says. More>>

Gordon Campbell: On Our Posturing At The UN

In New York, Key basically took an old May 2 Washington Post article written by Barack Obama, recycled it back to the Americans, and still scored headlines here at home… We’ve had a double serving of this kind of comfort food. More>>


Treaty Settlements: Bills Delayed As NZ First Pulls Support

Ngāruahine, Te Atiawa and Taranaki are reeling today as they learnt that the third and final readings of each Iwi’s Historical Treaty Settlement Bills scheduled for this Friday, have been put in jeopardy by the actions of NZ First. More>>


Gordon Campbell: On The Damage De-Regulation Is Doing To Fisheries And Education, Plus Kate Tempest

Our faith in the benign workings of the market – and of the light-handed regulation that goes with it – has had a body count. Back in 1992, the free market friendly Health Safety and Employment Act gutted the labour inspectorate and turned forestry, mining and other workplace sites into death traps, long before the Pike River disaster. More>>

Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news