Monetary Justice

The National Party Politicians giveth great tax cut promises, knowing that the National Party Pickpockets will taketh away. Maurice Williamson, National’s transport spokesman, gives us the heads up on what is to follow - any money spent on the common good such as major roading projects will be rapidly recovered by way of tolls. Goodbye tax cuts. Sleeping for nine years on the opposition benches, dreaming about policies of the past, have done nothing for their ability to deal with the here and now. Maurice Williamson’s comments on TVNZ’s Agenda programme about private sector funding and road tolls confirm the fact that National is still a classical conservative party - they will do nothing more than fiddle with the status quo. The problems of the day - debt; taxes; and the funding of health, education, environmental protection and infrastructure development - will not be solved by the political parties of status quo. At present there is no party of reform in the New Zealand Parliame...

A news release, issued by the Reserve Bank - 21 August 2008 - has Toby Fiennes, the Head of Prudential Supervision, saying ‘Purely as a precautionary measure, the Bank has put in place a facility where it will accept Residential Mortgaged-Backed Securities as collateral for cash, giving institutions an additional funding avenue.’ I say well done Mr Fiennes, now the Reserve Bank has this facility in place they should focus their attention on providing a similar facility, for our Governments – both national and Local – to develop the infrastructure needs of our nation. The Reserve Bank’s decision to make this facility available - if times get difficult - now makes it obvious that in easier times it would work as well and likely to be even more effective, especially if the interest rate charged covered costs only i.e. less than 1%.

The National Party’s desire to borrow from conventional sources for infrastructure development, will not only add further burdens to the many taxpayers by way of debt servicing, but will also help feather the nest of the few, his money market mates. Those who wheel and deal in the money market at present will be rubbing their hands with glee knowing that under National, John Key and Bill English will expand the government’s debt programme. In the current financial climate the prospect of debt instruments being traded and secured against the taxpayer will be a bonus. It is bad enough to suffer the effects of the current borrowing programme under a Labour Government without this being extended even further by National. New Zealanders must surely now reflect on the change that has occurred in the National party. A party that has only one answer of its own to offer – borrow more than Labour and help feather the nest of their leader’s money market mates. In all other respects it has beco...