Socred spells out its remedies

Press, 4 October 1977, Page 2

Socred spells out its remedies

PA Wellington! A “prototype” bill estab- 1 fishing a “New Zealand credit authority" was published yesterday by the Sccia! Credit Political League. The party’s spokesman on finance (Mr Les Hunter) said it would provide the basic framework from which to apply Social Credit financial policy.

The bill proposed by Social Credit provided a way out of present insoluble trading problems. Mr Hunter said. Its enactment would allow drastic reduction in interest rates, and cheap finance would be available for farm and factory development. bousing and localbody works. The authority proposed in the bill would create and issue money and would have the responsibility for regulating the total amount. This would be done with the aim of achieving and sustaining a steady internal price level with over-all economic stability and econ-j omic and social justice. Mr Hunter said. The authority would consist of the Minister of Finance as an ex-officio member. with other members appointed by Parliament on the recommendation of organisations concerned to achieve the objects of the act setting it up. It would be responsible to Parliament, and report annually to Parliament. The authority would:

Have the sole right to create, issue and cancel New Zealand money.

Manage the money supply so as to maintain equilibrium between the money supply, incomes, and prices.

Maintain a national bal-ance-sheet showing the amount of money created and to whom it has been advanced.

License trading banks as agents of the authority.

Advance to trading banks, at a service charge only, sufficient money to enable the banks to service the needs of their customers for working funds, whether they (were businesses or individuals.

Oversee the trading banks as to the charges made to customers in return for the chequing and accounting services rendered by the banks.

Advance money to the Government to allow it responsibility to reduce taxation or for State borrowing and I to repay Government debt.

Assume jurisdiction in the purchase and sale of overseas exchange.

In accord with Government policy, stabilise the incomes of the earners of overseas exchange by varying the buying price in New Zealand dollars of available overseas exchange.

Establish and maintain an import-export account from which money would be advanced to, and accepted from, nations who wished to exchange credits to facilitate trade on both a bilateral and multilateral basis outside the existing financial system.

The Social Credit Political League at the week-end launched an election campaign which it claims will result in its winning at least three seats in next year’s General Election.

At a rally in Feilding, the party’s leader and candidate for Rangitikei, Mr Bruce Beetham, said the latest polls showed that support for Social Credit was up sub-

stantially on 1975. and improving.

Responses from early advertising last month were greater than in the whole of the 1975 campaign, he said, and grassroots support had never been stronger.

At the last election the party claimed 9 per cent of the vote, but an increase to 16 or 17 per cent would put three Social Credit members in the House, he said. These would be himself, Mr N. McConachy in Kaipara, and Mr J. Dwyer, in Hastings, where the party was the effective electorate opposition.

Outside factors which would assist the party into Parliament were the “bankrupt” state of the country, and the present Government’s attempts to “muzzle criticism and intimidate opposition.”