ASHBURTON SEAT

Press, Volume CII, Issue 30286, 12 November 1963, Page 14

ASHBURTON SEAT

Mr Barwood At Tinwald New Zealand’s present financial system was inadequate, obsolete, and dishonest. claimed the Social Credit candidate for Ashburton (Mr A. W. Barwood), before an audience of 11 in the Tinwald Memorial Hall last evening, “Man now can do almost anything, but we fiddle along with an outdated and dishonest monetary system,” he said. “If we do not do anything about it, we will have communism of some kind in New Zealand.” “Under both parties we have socialism,” he said. Many persons were not enjoying the full benefits of modern scientific development. “Labour has never helped the working man.” he said. “If we put the social security into insurance we would be better off. The benefit derived from it, in proportion to what it costs, makes it a necessary evil." Mr Barwood said that the Government boasted about !he number of bills put through Parliament, but every bit of legislation was restricting somebody’s freedom. Of the bills, 50 per cent of those passed were because of the inadequate financial system. “Only Social Credit has the answer to this.” he said. The main problem in New Zealand was the ever increasing spiral of cost, he said. Wage rises were not the answer. What was needed was a price reduction. "Our cost structure is getting, so high it is affecting our trade with overseas countries because the cost of the goods is too high for some of the countries." Mr Barwood also criticised the decision to join the World Bank. There was probably more opposition to, than support for. joining the bank, and if a referendum had been taken, New Zealand would never have become a member.

“We have never yet failed to raise loans. We have always paid for our goods,” he said.

In spite of prosperity claimed, the National Government has borrowed £l7O million. The actual production of primary produce only increased 3 per cent, but the Government has taken credit for the £4O million increase in prices of overseas exports that would have occurred under any Government.

“Once we start to borrow from the World Bank. New Zealand is committing itself.” warned Mr Barwood. “We are losing our sovereignty, because there are conditions for these loans.’’ Outlining his party’s policy, Mr Barwood said that the League believed that all public amenities should be financed from money issued on the people’s behalf through the Reserve Bank. This would reduce cost, as amenities would only have to be paid for once. Under the present system, amenities had to be paid for about two times and a half with the amount of interest paid. “The National Government say that they have not borrowed from the Reserve Bank. They have already been using this avenue to finance projects in this country, but they are not telling you.” said Mr Barwood.

If amenities were financed by Social Credit, then rates would be reduced by half. Interest rates would be administrative cost which was a maximum of 1 per cent. Mr Barwood said that secondary industry would go along in line with primary industry development. Where a young man was well qualified, the Social Credit would assist him up to 100 per cent in capital at 3 per cent interest, or. if in business, up to 75 per cent at the same interest rate.