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

 


Beneficiary fraud recovery a drop in the bucket

7 August 2014

Beneficiary fraud recovery a drop in the bucket

“The $47 million saved in the last twelve months through a crackdown on welfare fraud is just a drop in the bucket” Democrats for Social Credit Deputy Leader and Finance Spokesperson Chris Leitch said today.

“On top of which, most of the amount saved has been already been spent due to the costs involved in the 4614 investigations and 893 prosecutions.

“The net result is a negligible saving, an army of investigators and prosecutors getting paid, and mountain of cases clogging up an already overloaded court system.

“If the Government was serious it could have saved that much in just four days, without all the un-necessary wastage”.

“Currently the government pays out $12 million every day from tax revenue in interest on loans sourced mainly from overseas owned banks.

“While trumpeting its amazing “savings” on beneficiary payments, it continues to provide a direct line of corporate social welfare to overseas owned banks which helped produce them a massive profit last year alone of over $4 billion dollars – most of which was shipped out overseas.

“If the government was serious about savings it would stop paying interest on money the banks create out of thin air, and adopt the recommendations of a 2012 International Monetary Fund report and source its funding from the publicly owned Reserve Bank at no interest.

The report published in August 2012 titled the “Chicago Plan Revisited” analysed a proposal by eminent economists Henry Simons and Irving Fisher, for the separation of the monetary and credit functions of the banking system.

They claimed that “Allowing the Government to issue money directly at zero interest, rather than borrowing that same money from banks at interest, would lead to a reduction in the interest burden on government finances and to a dramatic reduction of (net) government debt, given that irredeemable government-issued money represents equity in the common wealth rather than debt”.

The report says that under the Chicago Plan, “what would cease to exist is the proliferation of credit created, at the almost exclusive initiative of private institutions, for the sole purpose of creating an adequate money supply that can easily be created debt-free.”

The adoption of the proposals would see inflation reduced to zero, the report says.

That means the government could fund its requirements from the publicly owned Reserve Bank at no interest rather than borrowing it from overseas owned financial institutions.

It could do so because all banks create new money out of thin air when they make loans.

The Bank of England confirmed this in its quarterly bulletin issued earlier this year “One common misconception is that banks act simply as intermediaries, lending out the deposits that savers place with them.”

“…..rather than banks lending out deposits that are placed with them, the act of lending creates deposits. Commercial banks create money.”

“Of the two types of broad money, bank deposits make up the vast majority - 97% of the amount currently in circulation. And in the modern economy, those bank deposits are mostly created by commercial banks themselves.”

The government should put its own house in order before looking any further into beneficiaries’ finances.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Parliament Today:

Werewolf: The Defence Pretence

Last year, the world began spending more money on weapons again, for the first time since 2011... New Zealand belongs to a region – Asia and Oceania – where military spending rose sharply in 2015, by 5.4 per cent. More>>

ALSO:

Gordon Campbell: On Not Crying Foul, Argentina

So a couple of guys found to be criminally liable of environmental pollution in Argentina lodge an application with the Overseas Investment Office… in order to buy some prime New Zealand rural land. Seems that their factory back home had carelessly and/or intentionally discharged toxic waste into the Lujan river. Bummer... More>>

ALSO:

Urban & Rural: $303m To Merge And Modernise New Zealand’s Fire Services

Internal Affairs Minister Peter Dunne today announced funding of $303 million over five years to combine urban and rural fire services into one organisation from mid-2017. More>>

ALSO:

High Trust Regime: What Did The PM Tell His Lawyer About Foreign Trusts?

The Government stopped the IRD from reviewing New Zealand foreign trusts shortly after the Prime Minister’s lawyer wrote to the Revenue Minister claiming John Key had promised him the regime would not be changed. More>>

ALSO:

Road Crime: Wicked Campers Vans Classified As Objectionable

The definition of publication includes any "thing that has printed or impressed upon it, or otherwise shown upon it, 1 or more (or a combination of 1 or more) images, representations, signs, statements, or words", The Classification Office has previously classified such 'things' as billboards, t-shirts, and even a drink can. This is the first time the Classification Office has classified a vehicle. More>>

ALSO:

'When New' Repairs: Landmark EQC Settlement

The Earthquake Commission has cut a deal with 98 Canterbury homeowners that affirms the government entity's responsibility to repair earthquake-damaged property to a 'when new' state, as well as covering repairs for undamaged parts of a property and clarifying its position on cash settlement calculations. More>>

ALSO:

Gordon Campbell: On Kiwirail’s Latest Stint In The Dogbox

The denigration of Kiwirail continues. The latest review (based on a 2014 assessment) of the options facing the company have enabled Kiwirail to be hung out to dry once again as a liability and burden on the taxpayer. More>>

ALSO:

Royal Society Report: Good Opportunities To Act Now On Climate Change

There are many actions New Zealand can and should take now to reduce the threat of climate change and transition to a low-carbon economy, a report released today by the Royal Society of New Zealand finds... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news