RICCARTON SEAT

Press, Volume XC, Issue 27498, 4 November 1954, Page 14

RICCARTON SEAT

ADDRESS BY SOCIAL CREDIT CANDIDATE MONETARY AND TAXATION REFORMS PROMISED The cancellation of certain taxes, an increase m income tax exemptions and certain benefits, the cancellation of the means test, and a new financial system were promised by Mr J. E. Colechin, Social Credit candidate for Riccarton, if a Social Credit Government was elected. “We will make money serve the needs of man, not man serve the needs of money,” said Mr Colechin.

He was given a very" attentive hearing from the 122 persons who attended the meeting. “We hate the idea of being a political party. We are not politicians. We are just businessmen who are certain to bring about reforms in New Zealand,” said Mr Colechin. “And why are w e not a party? The reason is that we think the party system defeats democracy. We have no party discipline, and our candidates, when in the House of Representatives, will be allowed to vote as their consciences dictate.” he said. Mr Colechin spent some time in criticising the Government’s decision to allow the Social Credit League onlv one broadcast. “What right have the National and Labour Parties got to 30 broadcasts, and we only one?” he asked. “I am serious about this radio business. It is dreadfully reminiscent of Germany and Italy in the 1930’5. When you get into power it is a great way of stifling opposition. I’ll tell you why we only got one broadcast—thev are afraid of us,” he said. The National and Labour Parties* financial techniques were exactly similar, said Mr Colechin. They believed there were only two ways of raising money—by borrowing and taxation. “We see a third way—the creation of money. The results of borrowing can be obtained by studying the national debt. About 1900 we were about £50.000.000 in debt. Fifty-four years later this figure has risen to £800.000,000.” said Mr Colechin. “Neither party is free from that responsibility."

Purchasing Power and Costs “The money that you as a nation use Is only about 3 per cent, notes and coin,” said Mr Colechin. “The other 97 per cent, used is bank credit, which is created on demand. When a bank advances money to a person on a collateral security, that is new money in the community. Mr Holland and the previous governments have been guilty of borrowing the figures written into the banks’ ledgers to the tune of £800,000.000. It is a crazy system.” he said.

Mr J. Mathison, when asked by an interjector what could be done to reduce the national debt, said nothing could be done, and when the questioner persisted with his inquiry, Mr Mathison had said it would have to go on until it “bust.” “You are the people who will get hurt in the *bust’,” said Mr Colechm.

Speaking on wages and costs, Mr Colechin said a Social Credit government would raise the .purchasing Kwer to the level of costs. “Mr Holid said he would do it and he has failed miserably.” The Bureau of Census and Statistics said that for the year ended March 31. 1954, the incomes of the people were £727.000,000 and the total price of goods was £827.000.000—3 £100.000,000 gap between purchasing power and the cost of goods. That gap Social Credit was going to close until both were on the same level.

Housing loans would be made on a new basis also, said Mr Colechin. Today. if a loan of £3OOO was obtained to build a home, at the end of 30 years the borrower would have paid back £6OOO. Loans to be issued by the State Advances would bear an interest of only about 1 per cent., which would be used only for administrative

purposes. “In essence, we are going to make financially possible what is physically possible,” said Mr Colechin.