N.Z. faces finishing ‘bottom of pile’

Press, 7 October 1980, Page 6

N.Z. faces finishing ‘bottom of pile’

New Zealand could find it-l ! self “at the-, bottom of a pile; ■ of rubble” in 15 years if it! does not adopt monetary re-i forms immediately, the; Social Credit leader (Mr; B.- C. Beetham) warned last; evening. Mr Beetham listed the re-[ forms as a new internationalj trade .system and the; encouragement of ■ small; [businesses to solve the! world recession and internal! inflation. “Finance Ministers mayreach this solution after 15; years of groping towards it,! but what worries me is that [ New Zealand could find it-1 i self at the bottom of . a pilei I of rubble by the time they; ■ do reach it," he said ini [Christchurch. • ! | Mr Beetham had delivered: a detailed speech on the; Social Credit Political! League's monetary' policy to I the Canterbury Institute of! [Management.. After his address, he told) "The Press” that there were; itwo basic solutions to Newi

• [Zealand's economic ills. .■These were: i — To move outside the ■[present trade system based 'on the United States curren- . cy, and to engage with other -countries in trade bared on “mutual'exchanges of credit.” — To make available to [small and medium-sized in[dustry the investment [money and credit that at • present was given to privij leged monopolies and foreign investors. i These policies would i encourage more local pro--duction and would find mar-' ikets for the increase in[ [goods. j 1 He said that the govern--iment’s'policy favouring big! (energy and capital-intensive! (industries would end up in a i ; loss. I “The gains are highly; (questionable,” he said f Slich big industries, for! j example a second aluminium jsmelter, would absorb most; j bf the available investment ■ and credit in New Zealand [and deny to most.small and,

.[medium-sized industries the; I investment which they need--e[ed, he said. ; I; Small business would not, -[get off the ground, as the! r[ Government had predicted, i tj The new system of inter---[national trade would be) [based on the value of pro-; >[ duction available, allowing- ■ (countries to enter bilateral, t'or multi-lateral trade agree-1 t ments which were not; -(dependent on a dominant; -[economy. ■ . i ! The present trade system,' 1! based on the United • States; • i economy since the end of| -'World War 11, would fail asj i[the American economy con-! j tinued to weaken, he said. [ - The United States was! ;! growing more isolationist! ■ [and could afford to with-: 11 draw from much of its) 'present trade. In this case. ■ I New Zealand would be better placed if it established; - markets outside the Ameri-, i‘can-based system in, forj■l example. South-East Asia. :j Outlining other internal! 1 reforms, Mr Beetham toldlithe institute that financialj

•| control would be decentralised so that people would .-have control — as individluals, societies, local bodies lor industries — of the I money which represented [their production. j Trustee savings banks I would be converted into [community banks and .people's savings would be ■ inflation-proofed so that (“financial parasites” would not be able to attract depc-s- -| its. | Mr Beetham said Social Credit wanted the savings of [people to be under their .’control and to work for the (benefit of depositors and the [ community. j “This boils down to the [structure of management of ■ the credit which is available [because of savings," Mr Beetham said. Community banks would [work closely with local [authorities and make money [-available for diversified local industry. i To • provide the. incentive i for savings to move under i community control, Social

i-f Credit would “inflation-! d;proof” the money deposited-I-'on term in trustee banks; s;and the Post Office Savings; e Bank. d “In this situation, finan-; ■ cial parasites will be unable; s to attract deposits and their; O'expensive operations will be-; di come' unnecessary,” Mr Bee-; e: tham said. t: Individuals’savings lodged! d-with financiers would be' ;?protected and guaranteed; pending transfer to trustee; I!savings banks or the Post, •f’ Office. . r He said that Social Credite saw the management of! e;money creation as being ofi [such prime importance that! e;it should not be left in pri-j fjvate hands. e It was Social Credit policy- - to establish a New Zealandcredit authority which would) d be the sole agency respon-: ijsible for the creation of Newy:Zealand’s money supply. [ li Trading banks would be, ■ denied their present power e.of creating and destr'-“ng: r money. But as agents c the I;credit authority, they would;

■ be advanced sufficient funds lito allow them to service the 11 needs of industry and comdmerce for working funds. I The credit authority would; be responsible to Parliament,: -(to which it would present an) annual balance sheet. [ The balance sheet would! •[show New Zealand’s money! -supply and to whom it had) -'been advanced, and would: ■acknowledge that equili-j I brium had been maintained! ;; between total incomes and: [the value of goods and ser-) -vices produced. :- “We give priority in the! ’fuse of available money to; •helping people to live free:;from the fear of poverty and: [deprivation. After this, we( [want the money, equal - to re-i [maining resources, to be: lispent by people in impro-' Ijving social and leisure op- - portunity; < ; . “Improvement and protec-, i tion of the environment will i ‘ S resuit as people decide to ' spend an amount of money: : which is surplus [ to living; [needs on these priorities,’’! iMr Beetham said. i