PRESS RELEASE

11 October 1999

Grant Bradfield
Agriculture Spokesperson

CHP SUPPORTS NEW ECONOMIC INITIATIVE

Christian Heritage wishes to endorse the “Interest Linked Savings Scheme” (ILSS) as released today by Phil Verry.

It has become increasingly apparent that New Zealand’s current monetary policy is causing us to lose our economic independence. Our total indebtedness is similar to our annual Gross Domestic Product ($100b).

Our current deficit is $7b and rising. The proportion of GDP that is being withdrawn from the economy by overseas investors is 7% and rising.

New Zealand does not have a savings mentality, nor investment funds to put into new industries. Inevitably major new investment money comes from overseas which compounds our balance of payments problem.

The ILSS proposal appears to address many of these problems, eg, the money drain caused by the interest rate surcharge would be stopped. We would have a significant fund of investment capital of our own to stimulate our economy.

Individual superannuation funds would be built up thus reducing future government expenditure.

Christian Heritage recommends that ILSS be subject to extensive independent analysis and calls on all political parties to give their support.

The proposal, if adopted, should not be seen as a total rejection of our present monetary policy, but rather as fine tuning to give more control over our economic destiny.

ENDS