Submissions - Social Credit

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Overseas Investment Act Review Submission
May 25th 2019

Social Credit is very supportive of the points raised in the excellent submission sent in by CAFCA, however we would like to add some emphasis and some additional points.

In regard to point eight in the CAFCA submission, we are of the view that overseas investment in existing assets, unless it can be shown that there are very substantial benefits to the country from that investment that would not eventuate if that investment came from within New Zealand, should become almost impossible. There are other sources of investment not currently employed (which we explore later in our submission) that could easily replace overseas investment, with much greater benefit to the country.

While the New Zealand owners of assets have a right to secure the best return possible on the sale of an asset, the national interest must take precedence. There will always be potential overseas investors with much deeper pockets than New Zealand can match, however, simply selling off our country to the highest bidder is not a viable strategy for a secure long term future.

Other sources of investment -
- Rural Bank
- Technology Development Bank
- Cooperatives
- Reserve Bank
- Central Government

The potential for investment from these sources has not been explored in recent years despite having been a key factor in the historical development of the country. That potential is canvassed in the attachments.

Our contention is that overseas investment should only be allowed where it can provide benefits to the country which cannot be gained by sourcing that investment from within New Zealand.
Local Government Funding Review Submission
February 15th 2019
This is only the introduction and the conclusion. You can read the full submission here

Over the last 30 years local councils have seen significantly increased demands being placed on their funding, organisational, and service delivery capabilities.
Councils have been able to increase rates and charges to fund some of those requirements, but that is being constrained due to the country’s aging population, with more ratepayers on fixed incomes, and due to the fact that New Zealand is operating a low wage economy, meaning the majority of wage earners are already living with household budgets under stress.
Many councils have joined the Local Government Funding Agency in an effort to obtain better borrowing rates. The LGFA website says ‘We provide investors with a new source of securities rated at AA+ by international credit ratings agencies’. Ratepayers expect the money they pay to go towards providing services in their area, not to be the source of a significant contribution to the development of Capital Markets for wealthy investors.
Already over $800 million dollars of taxpayers money is spent every year on paying interest on council borrowing, when it could (and should) be providing services and facilities for local communities.
There is however another funding option that has not been investigated by local government New  Zealand or by individual councils.
In 2012 the International Monetary Fund published a lengthy report entitled the Chicago Plan Revisited.
Their  conclusion was that governments should issue credit through their  Central Banks for use to, for example, provide the country with funds  for building assets.
The implementation of the mechanism would remove very considerable stress on government finances in that the 5 billion dollar saving in interest annually would significantly boost funding for difficult areas such as in health, education, and state sector salaries while the creation of Reserve Bank credit would provide funds necessary for things like investment in transport projects, water supply,  wastewater treatment, forestry, in the regions and in environmental protection, to name just a few.
 These investments could be made by granting no interest loans to local councils, and/or suspensory loans which would not require repayment. Water supply, wastewater treatment, and earthquake strengthening would be suitable candidates for this type of funding.
We urge you to investigate the possibilities, our references, and include those recommendations in your report.
Phase 2 Review Reserve Bank Act Submission
January 25th 2019
This is only the introduction and the conclusion. You can read the full submission here

In 2012 the International Monetary Fund published a lengthy report entitled the Chicago Plan Revisited.

Its authors, two senior researchers, one of whom is now a senior researcher at the Bank of England, investigated, analysed, and modelled a plan of a similar name proposed in the 1930's by leading economists including Irving Fisher and Henry Simons.

Their conclusion was that governments should issue credit through their Central Banks for use to, for example, provide the country with funds for building assets.

They identified a number of very significant advantages over the present system in using that mechanism. One in particular was there would not be Inflation generated as a result. A second and highly desirable one was that the government would not be using precious tax revenues to fund the interest payments on money accessed from the private sector.

That tax revenue, currently approximately $5 billion dollars each year, would become available to provide services such as health, education, etc for New Zealanders.

Japan is currently using that mechanism as is China.........

On all counts there would appear to be only wins for a government that had recommendations with so many benefits, in a report from an institution such as the Reserve Bank, that it could use as a basis for proposing such measures be adopted.

We urge you to investigate the possibilities, our references, and include those recommendations in your report.
Bruce Beetham - Reserve Bank Ammendment Bill 1978
Bruce Beetham - NZ Credit & Currency Bill 1978
Bank of England -  Money Creation In A Modern Economy
German Central Bank - Money Creation April 2017
 Reserve Bank Letter – Money Creation

Submission to the Child and Youth Wellbeing Strategy
 December  5th 2018

This is only the introduction of each section and the conclusion. You can read the full submission here
1)    Health Care System
New Zealand children are experiencing an epidemic of chronic disease.
The 'new normal’’ of children’s health includes - allergies, anaphylaxis, Chronic Fatigue Syndrome (CFS), autoimmune disorders (diabetes, childhood rheumatoid arthritis, arthritis, multiple sclerosis etc.), thrombocytopenia purpura (ITP), autism, speech delay, neurological disorders, encephalopathy, meningitis, ADHD, childhood cancers, and more.  This epidemic of serious childhood illness must be terrifying for parents, medical professionals, educators, the NZ Treasury and all New Zealanders. How are we going to manage the financial and emotional costs in years to come?  
This epidemic needs to be managed using a different paradigm because what we are doing is clearly not working. We need to reassess the causes – starting now!
In our view the best way to manage long-term health costs is to focus on the creation of good health as being the primary goal instead of an increasingly more expensive disease management system. This would have the added benefit of making the health budget sustainable. The first step should involve an open and objective analysis of the current health care model to assess cost-risk-benefit and analyse whether what we are doing in health care is actually the most beneficial for our children. Improving children’s health has the flow on of long term healthy adults – a win-win for the health care budget.
2)    Mental Health
We are very concerned about the increasing number of young New Zealanders currently taking anti-depressant medication, and the alarming number of young people committing suicide.
Pharmac figures show that in 2007/08, antidepressant prescriptions included 14,733 for 6 to 18 year olds, and 72 for children aged five and under.
3)    Fluoridation
Ninety Seven percent of the Western European population, and the entire population of Japan, drink non-fluoridated water. More and more studies are uncovering the detrimental effects of fluoridation on health, and proving that the benefits for teeth are minimal or non-existent, yet our Ministry of Health continues to vigorously promote it.  
4)    Dental Health
Regular dental care should be accessible for all children, whether at their local school or through mobile dental clinics. Poor dental hygiene has a dramatic effect on other aspects of children’s health and wellbeing.
5)    Vaccination
Our government has never funded a causality study that would disprove the association between vaccination and the ‘new normal’ of children’s health. Independent research needs to be carried out to examine whether all the vaccines being recommended today are safe, effective and necessary for the protection of the community. It is also important to have comprehensive evidence that it is safe to inject multiple vaccines simultaneously before continuing this practise.
6)    Organic New Zealand
It is a matter of urgency that Government strongly encourages the use of non-hazardous farming practices to reduce the chemical loading on our young people.  There are positive benefits for the whole community in regenerative agriculture - building healthy fertile soils rather than the use of artificial fertilisers and pesticides where our food supply is grown.  
Good food grows healthy children so NZ needs a healthy food policy whereby food supplies provide an acceptable level of nutrition – a high mineral and vitamin content. Food should not be just free of bacteria, but have high nutrition value, low to no pesticide residue, low sugar content, low/no preservatives, and no-transfats and toxic /damaged fats - in other words safe to eat in every sense of the word.
7)   Agri-Chemicals
New Zealand can no longer afford to use uncontrolled chemical agriculture. Agrichemical sprays have long term negative effects and synergistic negative effects in combination.  Horticulture is close to where people live so people are exposed to spray and spray drift, whether they are working in orchards or not. Children are more affected by sprays due to their size, metabolic rate and development.  
8)    Mothers for Mothers Program
At risk mums and families who qualify should be eligible for support person - a “super-mum” who can help new parents transition smoothly from perhaps a dysfunctional family environment to a place where they can learn best practise for child raising.  
 Super-mums should be both experienced in child rearing from practical, hands on experience of being a mother, and have had extra training to learn how to support new parents who may not have had the best start in life themselves.
9)    Cannabis Law Reform
We suggest legalisation of NZ grown, non-GMO, pesticide-free and organically produced cannabis for medicinal purposes, including raw forms and proprietary forms of whole plant medicinal cannabis products.  Medicinal cannabis has the potential not only to relieve the suffering of New Zealanders with a range of medical conditions, but also to significantly reduce current healthcare costs.
10)   Funding of Child and Youth Wellbeing Strategy
The ‘user pays’ mantra of neo-liberal economics has created demands on family incomes that have put undue pressure on lower income families and the once-thriving middle class. More shamefully, a quarter of New Zealand children have been forced into poverty. It is a priority of Social Credit to remove these demands, and allow families access to a full range of social services without further eroding incomes.
Many of the suggestions we have made are likely to be considered “too expensive” to be put into operation. However if they were considered an investment in the social capital of our society they are likely to provide significant long term benefits, as would substantially improving the financial status of low income families.
Maria Bradshaw, co-founder and CEO of CASPER (Community Action on Suicide Prevention Education & Research) wrote "Suicide rates increased in states that reduced their per capita expenditures for public welfare during the 35-year period, 1960 to 1995. In 1990, not only were suicide rates higher in states that spent less for public welfare than in states that spent more, but states' spending for public welfare was the only variable that accounted for the widening of differences in states' suicide rates."
Australian economist, Peter Self, declares that “health, housing and education are the basic requirements of individual welfare as well as being essential for the prosperity and effective functioning of a modern society....” He adds that, although these requirements may be less tangible than material goods, the social elements of welfare are vital ingredients for our “social capital”.
In Paul Dalziel’s contribution in “The Decent Society” - a book published in response to the austerity policies implemented by the National government of the 1990s - he admits: “On the expenditure side, the first call on government funds is its interest commitments on public debt. This item accounts for nearly 20 per cent of tax revenue, and is the legacy of decisions by previous generations to finance budget deficits by issuing public debt.”
"Given that most of the bonds issued by Treasury are owned by and owed to overseas creditors, it is obvious that we are being short-changed by a financial system which also needs “a good rethink" - better still the recognition that such an analysis has been the focus of Social Credit thinking for several decades, the result being the development of practical and ethical financial policies for funding the infrastructures basic to a healthy economy.
Hence our claim that our sovereign central bank, the Reserve Bank of New Zealand is equipped to credit-fund (at a small service charge only) what is needed by society. Indeed, a decade ago the RBNZ was operating a credit facility amounting to five billion dollars for the major banks to aid them through their liquidity crisis.
We urge the working group to look at the $4,700,000,000 currently allocated by the government for debt servicing annually and recommend in your report that funding for government borrowing be sourced from the Reserve Bank to free up that wasted interest for investment in a comprehensive Child and Youth Wellbeing Strategy. Additional funding from the Reserve Bank specifically for the Child and Youth Wellbeing Strategy could also be made available.


Chris Leitch
Party Leader

This submission has been prepared for the Social Credit Party by Tracy Livingston.


Submission to the "Tomorrow’s Schools” Review
August 2018
This is only the introduction and the conclusion. You can read the full submission here
The Chairman
Tomorrow’s Schools Taskforce
Mr Bali Haque
Dear Sir
We welcome the review of tomorrow’s schools currently being undertaken.
It  is clear, by any measurement one cares to employ, that despite the  committed effort of teachers, principals, and support staff, our  education system is not achieving the standards we would wish for.
An  ever changing society is imposing greater complexities and challenges  on those committed educationalists, as it is on our children.
We  must design an education system that provides them with the resources  to not just cope with those challenges, but to steer our children  through their most formative years and deliver young adults with an  ability to adapt to a society where leisure, the arts, creative  thinking, and extended learning have a greater part to play in their  lives than ever before as computerisation and robotics take over  significant numbers of traditional jobs.
One of our tenets is Systems should be made for people, not people for systems; any that fail to serve people should be reformed or discarded”.
Any proposal for changes to our education system should start with that premise.
We look forward to participating further as your work proceeds.

Chris Leitch
Social Credit
“Education is a peculiar good.
It increases the more it is consumed”.
 - Paul Samuelson
Taskforce  chairman, Bali Haque, in an article for the New Zealand Herald (5th  July), wrote that “we cannot actually run a schooling system like a  commercial business.”
This opinion is a welcome reflection of  Social Credit’s approach to the public provision of essential  infrastructure and services. Hence our support for his call to “have a  good rethink about what we want for our children’s education, and design  a system that delivers it.”
It  is most certainly time to have that “good rethink”. And we must look to  Pakistani economist, Mahbulbul Haq for his insight. Haq rejected his  Yale/Harvard corporate model training which viewed “humans as producers  of wealth” switching to the view of “wealth as a producer of human  development”.
He learned “to  recognise the murderous message at the heart of the cold mathematics“  underpinning the models he was taught - which “oblige workers to produce  wealth while refusing to allow them to consume it.”
He  admitted that wealth “did indeed accumulate” but went into the pockets  of a few wealthy families - an observation made five decades back but  still all too relevant today!

American  writer, Steven Pinker, says: “Studies of the effects of education  confirm that educated people really are more enlightened.
They are less racist, xenophobic. homophobic and authoritarian.
They place a higher value on imagination, independence and free speech.
They are more likely to vote, volunteer, express political views, and belong to civic associations such as unions, political parties, and religious and community organisations.
They  are also likelier to trust their fellow citizens - a prime ingredient  of the precious elixir called “social capital” which gives people the  confidence to contract, invest, and obey the law without fearing that  they are the chumps who will be shafted by everyone else”.
Our  message is that this “precious elixir” must be safeguarded by humane  and ethical financial policies as promoted by Social Credit.

Written for the Social Credit Party by Heather Marion Smith B.A.,Dip.Soc.Sci.[Econ]


Submission to - Tax Working Group
April 2018
This is only the introduction and the conclusion. You can read the full submission here
The Chairperson
Tax Working Group 2018
April 2018

The submissions background paper contains the following statements:-

1.     The primary objective of tax policy is to provide revenue for the  government to fund the provision of public goods and services, and  redistribution. Oliver Wendell Holmes put it more succinctly: “Taxes are  what we pay for civilized society”.
2.    A good tax system is one where the tax due is actually collected.
       New Zealanders should not be able to avoid paying tax through evasion or avoidance arrangements.
3.     Taxpayers’ costs of complying with the tax system and the  government’s costs of administering the tax system should be kept to a  minimum.
4.    ‘Nāu te rourou, Nāku te rourou, ka ora ai te iwi’
      ‘With your contribution and mine, the people will prosper’.
5.    GST is regressive in that lower-income households tend to pay a larger proportion of their income in GST.
6.     Changes in technology, particularly with digital communications, are  changing business practices and the way people earn income.

We would like to address each of these statements in turn and in the course of doing so, address some alternatives.

1.     If, as Oliver Wendell Holmes put it: “Taxes are what we pay for  civilized society”, why is it that a significant portion of the taxes  people pay are not directed to that goal. For example, approximately  $4,500,000,000 every year (about what is spent on Police & Law and  order) goes directly by way of interest payments into the profits of  banks and financial institutions that the government borrows money from.  

Government  borrowing could instead be accessed direct from the Reserve Bank at no  interest (and possibly without the need for repayment) as is  increasingly being done in Japan.  That $4.5 billion could then actually be used “to fund the provision of  public goods and services” – supposedly the primary objective of tax  policy.

In  a modern economic system (we currently have an outmoded one) the aim  should be to reduce tax as much as possible to leave greater spending  power in the hands of individuals.

With that aim in mind the Tax Working Group should recommend:-
-          Progressive removal of as many taxes as possible, especially GST.
-          Introduction of a transactions tax on all bank account withdrawals.
-          Funding of increasing amounts of government expenditure through the Reserve Bank.
-          Reduction in the amount of credit creation undertaken by the private banks.

Chris Leitch
Leader - Finance Spokesperson
Social Credit
             If you want
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  - Better Roads                - Lower Rates
  - Better Health Care     - Less Tax
  - Better Education        - Clean Rivers

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If you want
 - Better Housing           - More Say
 - Better Roads         - Lower Rates
 - Better Health Care     - Less Tax
 - Better Education  - Clean Rivers
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