MEDIA RELEASE

Friday 24 June 2005

Tax debate exposes limitations

“The debate around the feasibility of tax cuts clearly exposes the limitations of the current financial system” Democrat Leader Stephnie de Ruyter told an Invercargill meeting today. “It also exposes a lack of political will to examine the potential of more creative methods of sharing New Zealand’s wealth.”

Ms de Ruyter cited the Democrats for social credit’s Community Credit Programme as one such method.

“The Community Credit Programme enables the Reserve Bank to issue credit by way of grants and loans to local territorial authorities for infrastructure works and approved community projects.

“Major projects such as the upgrade of the Civic Theatre could be funded this way, alleviating Invercargill ratepayers of the inter-generational debt burden imposed by interest-bearing commercial loans. No need then for the massive 8.5% rates increase. That leaves more money in ratepayers’ pockets.

“The April Fool’s Day petrol tax imposed to fund roads in Auckland, could be scrapped. Transport infrastructure programmes would be eligible for Reserve Bank support. And that leaves more money in Southland motorists’ pockets.”

Ms de Ruyter noted that the call for tax cuts had been poorly addressed by Labour and National.

“With the right hand offering tax cuts and the left hand warning that that would mean public spending cuts, the social credit option offers a fairer system and more choices to the New Zealand body of voters” Ms de Ruyter said.

ENDS

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