Press release 28/05/2018
A CALLOUS AND UNDERWHELMING BUDGET
Positive Money New Zealand, a not for profit enterprise advocating a change to our banking and monetary system, considers the recent budget from the Labour led government to be a missed opportunity.
Labour and New Zealand First promised “Capitalism with a Human face” but what we got, says Don Richards founder of Positive Money New Zealand “was a business as usual budget, delivered by a guy wearing a red tie, rather than a guy wearing a blue tie”.
While the budget did address some of the issues around health and education, it clawed back on some of its promises, saying that they will be phased in, rather than delivered when people expected them to. The Government also committed to returning the country to a surplus when there are systemic problems with our economy that need urgent attention.
A surplus means that the government takes more from the economy in taxes than it returns in spending and now is not the time to contemplate such a thing. Labour has to deal with substandard hospitals, shoddy repair work from the Canterbury rebuild and the mycoplasma bovis outbreak. These three issues could be traced back to the last government cutting corners to achieve their surpluses. Who or what is going to have to go without, so that Labour can achieve its surplus?
The Labour Government also has other significant issues to deal with such as pay rise pressure from nurses, midwives and the police to name a few, our mental health system, child poverty, inequality, youth unemployment, homelessness and a dignified welfare (and retirement) income. Given its priority of providing surplus’s Labour will consign a significant portion of our population to a miserable existence while it tinkers with achieving a surplus.
One funding option that will allow the government to address all of the above without raising taxes or going further into debt is to utilise Reserve Bank credit to fund infrastructure projects for roading, hospitals and new housing. This will free up billions of dollars for much needed social spending.
This is not a new idea as the first Labour Government used Reserve Bank credit to build thousands of state houses and to fund significant infrastructure projects. This got New Zealand out of a worse situation than we are currently in and set the foundation for our welfare state that became the envy of the world.
When asked at a recent Post Budget presentation if he had considered Reserve Bank credit our Finance Minister replied with an emphatic “No”. He went on to say that they would not entertain a “Social Credit” policy.
Richards says "Check your history books, Minister. This was a very successful First Labour Government initiative in 1936 that lifted New Zealand out of the Great Depression and provided a decent standard of living for tens of thousands of New Zealanders."
For information, contact Don Richards
Email address hm firstname.lastname@example.org
Cell: 0274 778 147
Phone wk: 07 307 1158
Phone hm: 07 307 9366