Media Release

Monday, 24 July 2006

Reserve Bank funding the only sustainable option

“Reserve Bank grants, interest-free loans and low interest loans should be available to local bodies to fund infrastructure projects” said Democrats for social credit Leader Stephnie de Ruyter, addressing a Wellington meeting yesterday.

Reports from the Local Government New Zealand (LGNZ) conference last week that funding issues were driving high percentage rates increases, causing hardship to many ratepayers and stalling necessary infrastructure upgrades, reflected the folly of the present narrow funding mechanisms, Ms de Ruyter stated.

“By utilising our own Reserve Bank of New Zealand, instead of borrowing from commercial trading banks, our country’s infrastructure and community project needs could be met without the burden of interest-bearing debt. We would then pay for these projects once, not two or three times over. And tomorrow’s ratepayers would no longer be encumbered with servicing yesterday’s debts” she said.

Ms de Ruyter noted that this was an example of applied social credit.

“The current practice of gathering local body funding through rates, taxes, fees, fines, government subsidies and top-ups is clearly unsustainable and unaffordable: the burden on ratepayers, residents and taxpayers is too great.

“The government must look to the publicly-owned Reserve Bank to fund essential infrastructure development. It is the only sustainable funding option suitable for this purpose” Ms de Ruyter concluded.

ENDS

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