The Guardian Political Review Produced by the New Zealand Democratic Party for Social Credit Inc. Issue No.65
Winter 2014
ISSN1176-614X
A Diamond Celebration! 1954 - 2014 IN THIS ISSUE
"Onward and upward" Highlights of six decades of political action A message from Rev Canon Peter Challen
PLUS NEWS, REVIEWS, FEATURES & MORE
The Guardian Political Review
Issue 65, Winter 2014
Produced by Guardian Publishing on behalf of the N.Z. Democratic Party for Social Credit, PO Box 5164, Invercargill 9843 Tel/Fax: 07 829 5157 Email: democrats@democrats.org.nz
Website: www.democrats.org.nz
Editor: Tony Cardy, 26 Warren Street, Oamaru 9400. Tel/Fax: 03 434 5523 E-mail: editor@guardian.org.nz Web: www.guardian.org.nz
EDITORIAL
Something to celebrate!
This Diamond Anniversary issue celebrates sixty years of political action and achievement. It also pays tribute to the willing workers who, over decades, have sacrificed time, effort, money and family to build the base for those successes. It also marks my quarter century as Guardian editor. In February 1989, I quoted from a 1933 report of the Economic Crisis Committee of the Southampton Chamber of Commerce: “Never in the history of mankind have the opportunities for human advancement been greater, and it is probably that never has mankind been threatened by such overwhelming disaster as at the present time. With a civilisation built upon a
fundamentally faulty economic structure, it would seem disaster is inevitable in the absence of any attempt to readjust the economic system to modern requirements. Signs of such a fate for our civilisation are not lacking in the face of so serious a challenge, no individual should fail to accept the grave responsibility which rests upon him in regard to the future.” Those comments are even more relevant today. In this issue, DSC leader Stephnie de Ruyter offers “a workable alternative which can restore New Zealand’s independence, establish a more equal society, protect our fragile environment, and build a secure, prosperous future”. Now that is something to celebrate!
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CONTENTS 1 ‐ Front cover 2 ‐ Editorial 3 ‐ Leader's Message 4 ‐ Media + DSC Executive 5 ‐ Katherine Ransom 6 ‐ Peter Challen 7 ‐ 1954 8 ‐ 1966 9 ‐ 1978 10 ‐ 1980 11 ‐ 1984 12 ‐ 1988
6
20
25
Guardian Political Review, Issue 65, 2014 - Page 2
13 ‐ 1991 14 ‐ 1992 15 ‐ 1996 16 ‐ 2002 17 ‐ Tribute (1) 18 ‐ Tribute (2) 19 ‐ Spokespeople 20 ‐ Buying New Zealand 21 ‐ Superannuation 22 ‐ Pure water 23 ‐ David Tranter 24 ‐ Hessel Van Wieren
9
25 ‐ Wizard + Adrian Bayly 26 ‐ NZ Economic bubble 27 ‐ Debt 28 ‐ Socred rail proposal 29 ‐ Letters 30 ‐ Reviews 31 ‐ Whitmill's World (1) 32 ‐ Whitmill's World (2) 33 ‐ Whitmill's World (3) 34 ‐ News bites (1) 35 ‐ News bites (2) 36 ‐ Back cover
LEADER'S MESSAGE
Proud, relevant and optimistic By Stephnie de Ruyter Leader, Democrats for Social Credit
Chinese philosopher Laozi’s well known proverb a journey of a thousand miles begins with a single step may not have been in the minds of the Social Credit movement’s committee members when, after many fruitless years campaigning as a lobby group, they made the decision to register as a political party ‐ the Social Credit Political League. But that first step on 9 June 1954 has led to a long and tumultuous journey ‐ a journey inspired by the work of Major C.H. Douglas. Many small steps really do cover much ground over time.
have championed the Party and its cause through sixty years of trials and tribulations, victories and defeats, and occasional name changes; only momentarily discouraged when the odds are unfavourable, constant under pressure, and supportive regardless of the political outcome.
Political engagement is very difficult for the many parties outside parliament. Media indifference, lack of voter recognition, the absence of parliamentary resources, and closed orthodox minds make the going hard. Most new parties don’t survive for long on the outside. They materialise during election years with trumpets and fanfare then disappear shortly after, disillusioned and disappointed, without so much as a whimper. And yet we persist. Why? Social crediters are decent people, with a keen moral sense and sound values. They are people of good character. They care about others. And they understand that perseverance pays off, eventually.
Social Credit Party’s 2014 election campaign. At this election we must all take every new opportunity to talk to our friends and neighbours about the social credit solution. The hazards of clinging to the present system are only too obvious: social inequality, exploding government debt, deception, a degraded environment. Without change, it’s not going to get better any time soon.
Sixty years of commitment to economic justice and social change through social credit reforms have been vindicated by recent admissions that banks do create money out of nothing (eg RBNZ’s Bulletin March 2008, Bank of Sixty years of commitment England’s Quarterly Bulletin Q1 The Democrats for Social Credit 2014, and Benes & Kumhoff’s 2012 to economic justice and Party celebrates a significant mile‐ report to the IMF), that the process social change stone this year: sixty consecutive is both simple and unimaginably years of registered political party profitable, and that monetary reforms are necessary status. Also cause for celebration is the Party’s to redress the imbalances and secure humanity’s impressive track record of having campaigned in future. The whispered message from the orthodox each and every general election since our first economic world is that social credit has been right outing on the hustings in 1954. That the Party is all along. fighting fit and campaigning in this year’s general election says much about the tenacity, In the same way, today’s activists are laying the determination, and dedication of its members and foundations for the Party’s future. Passion, supporters. enthusiasm, and energy drive the Democrats for
It is the work of the party builders, the “giants” of the Party’s past, which underpins our political presence today: the staunch social crediters who
Guardian Political Review - Issue 65 - Page 3
Tell anyone with ears that social credit is a workable alternative which can restore New Zealand’s independence, establish a more equal society, protect our fragile environment, and build a secure, prosperous future. Democrats for Social Credit: a party proud of its past, relevant in the present, and optimistic about the future.
Budget surplus should have been $4 billion DSC Media release May 2014
Democrats for Social Credit finance spokesman Chris Leitch has attacked this week’s budget and its tiny surplus, labelling its authors “criminally negligent”. “Without a single extra dollar in tax revenue, user charges, or money from asset sales, the surplus should have been $4 billion”.
“Of the two types of broad money, bank deposits make up the vast majority - 97% of the amount currently in circulation. And in the modern economy, those bank deposits are mostly created by commercial banks themselves.” (Bank of England Quarterly Bulletin Q1 2014)
Our own Reserve Bank has said the same –
“The Finance Minister and the Prime Minister are proposing to squander $3.6 billion of hard earned taxpayers money in the coming year on interest payments on borrowing - loans created out of thin air.”
“Therefore around three percent of M3 is created by the Reserve Bank (currency and primary liquidity), with the remainder being created by commercial banks.”
The Bank of England confirmed last month in its quarterly bulletin that commercial banks create money out of thin air when they make loans.
The budget cut around $700 million from departments such as Police, Ministry of Justice, Corrections, Customs, and Environment and Conservation, instead providing a direct line of corporate welfare to the banks through interest payments.
The lengthy article on money creation says: “One common misconception is that banks act simply as intermediaries, lending out the deposits that savers place with them.” “…..rather than banks lending out deposits that are placed with them, the act of lending creates deposits. Commercial banks create money.”
(Reserve Bank letter 1 September 1994).
Instead of John Key’s government getting its funding from the Reserve Bank at no interest, it is paying interest on loans created out of thin air, a ludicrous situation which shows the Finance Minister is either incompetent or ignorant of the facts. Either means he is not fit to be Minister of Finance.
Democrats for Social Credit: Executive Contacts Leadership: Leader Stephnie de Ruyter PO Box 5164, Invercargill 9843 Ph 03 215 7170 Mobile 027 442 4434 Email: democrats@democrats.org.nz Email: stephnie.deruyter@democrats.org.nz
Deputy Leader Chris Leitch 42 Reyburn House Lane, Whangarei 0110 Ph 09 430 0089 Mobile 021 922 098 Email: chris.leitch@democrats.org.nz
Executive Officers: Party President John Pemberton PO Box 402, Matamata3440 Ph 07 8888564 Mobile 021 716 895 Email: john.pemberton@democrats.org.nz Website: http://www.johnpemberton.co.nz Blog: http://monetaryjustice.blogspot.com
Vice-president Katherine Ransom PO Box 402, Matamata 3440 Ph 07 888 8564 Mobile 027 471 6891 Email: katherine.ransom@democrats.org.nz Blog: http://katherineransom.blogspot.com
Regional Presidents Northern & North Shore Regions David Wilson PO Box 60, Paparoa 0543, Northland Ph 09 431 7004 Email: david.wilson@democrats.org.nz Guardian Political Review, Issue 65 - page 4
Auckland Region Neville Aitchison Mobile 021 816 713 Email: neville.aitchison@democrats.org.nz
Waikato Region Dawood Latif 6 Coombes Road, Te Kowhai, Hamilton 3288 Ph 07 855 0424 Mobile 021 765 528 Email: dawood.latif@@democrats.org.nz
Eastern Region Barry Pulford 17 Caernarvon Drive, Flaxmere, Hastings 4120 Ph 06 879 9497 Mobile 027 288 5658 Email: barry.pulford@democrats.org.nz
Western Region Heather M. Smith 8 Darwin Rd, Gisborne 4010 Ph/Fax 06 867 6668 Email: heather.smith@democrats.org.nz
Wellington Region Karl Hewlett 600 Makara Road, RD 2, Wellington 6974 Mobile: 021 277 9009 Email: karl.hewlett@democrats.org.nz
Canterbury/West Coast-Tasman Region Robin Columbus 10b Bygrave Place Christchurch 8083 Mobile:021 0225 4902 Email: robin.columbus@democrats.org.nz
Southern Region Hessel Van Wieren PO Box 149, Cromwell 9342 Ph 03 445 1398 Mobile 027 441 6089 Email: hessel.vanwieren@democrats.org.nz
Party Secretary Roxanne Hansen 59-61 Arawa St, Matamata 3400 Mobile 027 733 6641 Email: secretary@democrats.org.nz
Ex Officio Positions: ‘Guardian Political Review’ Editor Tony Cardy 26 Warren Street, Oamaru 9400 Ph 03 434 5523 Email: editor@guardian.org.nz Website: http://www.guardian.org.nz
Committee Convenors: Finance Committee Carl Findlater Ryal Bush, R.D. 6, Invercargill 9876 Ph 03 221 7075 Email: carl.findlater@democrats.org.nz
Policy Committee (acting/interim) Jenner Lichtwark 84 Buckleys Rd, Linwood, Christchurch 8062 Mobile 021 295 5141 Email: jenner.lichtwark@democrats.org.nz
C
n
Neville Aitchison (refer Auckland Region President's entry)
Notes of a Newbie on the Teachable Moment By Katherine Ransom DSC Vice President Compared to many DSC members, I am a Kathy‐Come‐Lately. I didn’t join the Democrats (as the party was known then) until 1999. Practically wet behind the ears, you might say. I joined because I worked in the Glenfield office, employed as electorate secretary for Grant Gillon. I became a member because everyone else was a member. Not very politically motivated, was I?
campaigns. However, we’ll never get any bigger while we still expect people to A) listen to the complexities of economic reform, B) take them on board with some sort of understanding and then C) join up with enthusiasm. It just doesn’t happen that way for most of us, and never did.
Here’s why: Hardly anyone has time to talk politics these days. Too many of us work long hours and are just too tired to think. Anyway, people hooked for life to the best political movement in the world expect political parties to I cared about the be large powerful struggling and often movements with resources and infrastructure. They take one desperate people who came to the office for help. I was glad look at our website and say ‘These ideas are to be able to wield the power of an MP’s name for their great/crazy/commendable/impossible, but the party is too benefit, and I knew there ought to be a better system for small to be effective/threatening.’ And we are dismissed as them to live in. I thought my office colleagues were pleasant people who threw great barbecues, and I assumed they cared irrelevant. as much as I did about the plight of these constituents. We know we are very relevant. So if we aren’t going to
But I was a babe unborn when it came to monetary reform, and in my happy ignorance I joined the party. I took it on trust that it was a worthwhile thing to do, never mind the details. It wasn’t until much later, after many long, patient explanations from my new husband John Pemberton, that I woke up one morning and thought, “Ah! I get it!” It was my Teachable Moment. An important component of this election campaign is to grow the party. It’s essential that we gain new and younger members and keep the all‐important principles of economic reform alive. With more members we gain credibility as well as resources, and the media will have to take notice of our
convert lots of people one at a time through cogent, passionate argument, how do we sign new members?
How about this: – join up your friends, colleagues, club members, support group members, bowling partners, poker buddies, anyone, because they know you and like you and want to please you. Ask them to do you a favour and in return they’ll get a great magazine in the mail. Later on you can explain monetary reform to them, but not until they ask. That will be their Teachable Moment, and they’ll be hooked for life to the best political movement in the world.
A Celebration! DSC 2014 Diamond Anniversary Conference & Campaign Launch Plan to come to the Elms Hotel at Papanui Road, Christchurch, on Saturday 2nd and Sunday 3rd August to celebrate the 60th anniversary of our registration as a political party and our inaugural election campaign in 1954. Reminisce with old friends, and make some new ones as we honour the past, celebrate the present, and look forward to the future. More details from www.democrats.org.nz
Guardian Political Review, Issue 65 - Page 5
Onward and upward A message from Rev Canon Peter Challen (UK) On behalf of many in our UK networks for inclusive justice, I send congratulations to all in the New Zealand Democratic Party for Social Credit for sixty years of endeavour. Sixty years, and sadly still no effective change has come about for which many have worked and hoped.
structured to reproduce – to literally fabricate – the kind of inequality that widens inequality, accentuates poverty, kills children in Africa, and the aged in the rich countries. (50,000 people die every year, prematurely, in England and Wales alone, because of that fiscal/financial system – many of those people losing up to 12 years of life they could otherwise enjoy on earth).
Disappointments, frustration and a feeling of hopelessness against a tide of opposition to the message of a just economic system for all are part of the mountain of change which must be One dilemma we recognise Anniversaries are times for celebrations climbed if the object of achieve‐ and for reminiscences. They are times for widely is that very few people are ment is to be realised and millions freed from the slavery of financial get togethers. They are time for thanks. So able to hold in their mind the let us rejoice at this time and give thanks natural creative tension of the debt. interplay of three inter‐dependent for all who have walked along with us. It would be unrealistic not to aspects of reality, the intimate/ You, at least, have not surrendered. appreciate that, outside the personal, corporate/societal and NZDSC, and in most areas of the global/inclusive well‐being. To hold and apply that awareness world, there are many well intentioned seekers of a fairer just is the mindshift, the new paradigm, which we must all help to society working to achieve a similar aim in their own way. awaken in our own communities. Therein lies the encouragement which my message offers. However, taking a long historical view of our understanding However research among associates has led to the of genuine economy I feel Nic Askew catches the scale of our conclusion that laudable initiatives like the UN’s MDG's goals, task: Positive Money and other reforms cannot, in principle, be "There was a man, who could have been any of us and achieved; and that the World Bank advocacy of change probably is, who after a long arduous ascent full of grit and cannot, in principle lead to a qualitative change to the social sacrifice, glanced back across the horizon, only to realise that system that germinates the conditions for suffering. he had climbed the wrong mountain" Why not? Because the IMF/World Bank and the Financial I believe that the workers for beneficial change for all in sector all work within a fiscal/financial framework that is New Zealand, the DSC, are climbing the right mountain. There's still a long way to go, but onward and upward must be the motto for all travelling the route we have chosen. Continue to inspire others by the attentive clarity of your message to them, to give them courage to leave the old ascent and to climb this greater mountain. It’s an act of systemic re‐design, not re‐form.
Peter Challen with DSC leader Stephnie de Ruyter
Anniversaries are times for celebrations and for reminiscences. They are times for get‐togethers. They are time for thanks. So let us rejoice at this time and give thanks for all who have walked along with us. You, at least, have not surrendered. Isaiah chapter 43 verse 18 states "Do not cling to events of the past or dwell on what happened long ago. Watch for the new thing.."
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1954
How it all began By Colin J. Whitmill Extract from ‘A history of the NZ Democratic Party – the vehicle for social credit’
Had it not been for the first‐past‐the‐post electoral system, and a vacuum in it for a third party to fill, the interest of the social credit message would have faded from the public mind in New Zealand far earlier than it did.
a national credit authority, the payment of a national dividend and the mechanism of a compensated or just price however caught the imagination of thousands of New Zealanders who warmly welcomed him for a brief speaking tour in January 1934. In depression‐hit New Zealand the social credit solutions to economic misery spread like wildfire with at one stage the rising Douglas Social Credit movement claiming some 225 Captain Rushworth branches. In the political arena, independent MPs Harry Atmore of Nelson and Captain Rushworth of the Bay of Islands gave the solutions their support as did many people who saw the Labour Party with its own advocates of monetary reform as the means whereby the positive proposals would be implemented.
It was political action, and the first‐ past‐the‐post electoral system, which enabled a 1930's message of salvation from financial depression to remain Major C.H. Douglas part of New Zealand's history for so long. It was the electoral With the emphasis of monetary system which pushed the message to a peak of 31% public reform in its policies. Labour hauled in opinion support before being the votes rapidly pushed downhill (by) Incorporated society status as the New Zealand Social of social establishment ridicule, lies, public Credit Political League was granted on 9 June 1954 crediters at ignorance, and the appearance of the 1935 other third party challengers. general
election to enable it to win enough seats to form its first government. The privately owned Reserve Bank was taken into public ownership, but the Walter Nash hopes for change and monetary reform were cruelly quashed when Walter Nash, an advocate of orthodox financing, became the Minister of Finance.
In comparison with some political creeds and ideology in the world, social credit is a little known philosophy, even in the country of its founder Major Clifford Hugh Douglas, an English‐born engineer. Major Douglas was given a brief in 1916 to review costing procedures at the Royal aircraft works In Famborough, England. His enquiries showed that the factory was compiling costs faster than it was distributing incomes. Fascinated by this revelation, Douglas collected information from over a hundred large companies and found the same result. By producing a mathematical formula called the A + B theorem, Douglas found that in any one time frame there was a gap between the costs of an article and the money distributed to buy it. Only wages for future production could enable this "gap" to be closed or money from overseas or by borrowing.
The Labour Party had promised that the state on behalf of the people would control the issue of credit, so necessary for any implementation of any of the social credit solutions. The promise was not kept.
Douglas published his findings and expanded on them in the weekly review The New Age. In 1920 Douglas published the first of several books in Harry Atmore which he attempted to show the deficiencies of the monetary system. His solutions to them took on a mystical jargon which meant nothing to most people.
When it became clear that these efforts were failing, a demand arose from the membership for direct political action. Following two years of debate, on 10 January 1953 the Social Credit Association agreed by 28 votes to 3 to support an immediate and intensive dominion‐wide campaign with the objective of achieving a SOCIAL CREDIT government.
The monetisation of a country's assets, the establishment of
Guardian Political Review, Issue 65 - Page 7
Seeing that all its hopes had been smashed by Labour Party orthodox economists, the Douglas Social Credit Movement, which had become the Social Credit Association, decided to give encouragement and support to independent candidates advocating social credit reforms. In addition it formed a Political Council to educate people and bring pressure on members of Parliament.
Incorporated society status as the New Zealand Social Credit Political League was granted on 9 June 1954.
1966
Into Parliament Cracknell breaks through! By John G. Rawson
Vernon Cracknell was a well‐known and respected accountant, living in Kerikeri and in a partnership based on Kaikohe, both in the then Hobson (formerly Bay of Islands) electorate. In the thirties, this seat had been held by Captain H M Rushworth, leader of the Country (Farmers Union) Party who became converted to Social Credit and later took an active part in the movement. It had the strongest proportion of Social Crediters in New Zealand, most of them small and impecunious farmers and small‐businessmen and women. Unlearning something you think you know all about is far harder than learning something new. Vern was one of very few people with the intellectual honesty and moral courage to face up to this. He became convinced Social Credit was right, and was ready to be asked to stand for the Party and later to be its Leader in 1963.
The three Northland electorates worked as a team. Rodney had two thousand members. Whangarei (then named Marsden) had only a hundred or so, but had a high proportion active. It had also the first group of Young Social Crediters in the country. Fund‐raising was done largely by the active Womens’ Sections, with stalls selling cakes, plants and other goodies. Regular raffles were run and some more ambitious stock schemes operated, with individual farmers agreeing to graze a Socred steer and for the 'works' price to go to the Party.
There were two strong centres in the Hobson Electorate. Vern’s home area around Kerikeri was well organized, and this organization extended northward up into the Far North, with people like former marine The first demonstration engineer Wahi McKenzie in Broadwood, Steven of strength by the Party Brindle in the Hokianga and several strong personalities in the Far North leading the way. Vern’s approach was cautious. He However, the group that later claimed to have accentuated that we would use a small and carefully ”got Vern elected” was very strong around Dargaville to the considered amount of new money in our policies. He was very west, led by the Glamuzina family and Jack and Noreen careful who else spoke in “his” Electorate. Nevern McConachy McKenzie. was welcome and, to my surprise, I was invited to speak at a The Social Credit campaign had repercussions in the North. meeting when he had a double engagement. One of those The “threat of Cracknell” led to money being spent in this present was Margaret Hook ‐ small coincidences can have formerly neglected appendage of the country. Formerly long‐standing results. Vern was also methodical. He had neglected highways started to receive attention. One example worked out a good speech, which he delivered verbatim at was that the Forest Service was told to modify its plan of every location. However, he welcomed questions under gradually working its way north with afforestation of sand normal circumstances and answered them well. dunes and immediately to start active planting behind Ninety Hobson branch had a strong membership, exceeding a thousand, and many were willing to do the necessary hard work. The election was fought in strong expectation of success, except for cautions from our very careful Leader not to expect too much. On 1963 Election night, Vern led by twelve votes, but a recount reversed that and gave the seat to National. In statement typical of the man, he told us this was a good thing, giving us a chance to do it really well in 1966.
At the time of the 1966 campaign, television was becoming a factor in politics, and Social Credit recognized that before the other parties. TV training sessions were set up for candidates, which turned out to be some of the greatest builders of camaraderie the Party has ever held. As a result, in many cases including the north, Social Credit surprised viewers by outperforming the more experienced parties. While both Nevern McConachy and I received accolades for our appearances, the real reason was the training we had been given.
Guardian Political Review, Issue 65 - Page 8
Mile Beach. A large forest nursery was started at Sweetwater, north of Kaitaia, to supply planting stock.
By election day, it was not only “the faithful” who were sure Vern would win. In Wellington, there was a problem about where a third‐party new M.P. would fit in and measures were being taken to convert an area to accommodate him. Election day saw the three numerically top Socred votes coming north. Cracknell elected, McConachy a close second and Whangarei a high third. Local members were enthusiasti‐ cally working out how to be in Wellington for Cracknell's inaugural speech. Thus ended the first demonstration of strength by the Party. Vernon Cracknell's achievement was that he brought to the Party an appearance of responsibility and care. No longer was it easy for the critics to dismiss Social Credit as either a freak religion or an irresponsible group on the lunatic fringe of politics. It showed we could gain seats if we did the right thing.
1978
Beetham versus the rest ‐ what the country believed would never happen ‐ had! Extract from 'Beetham' by George Bryant (with permission)
After Vern Cracknell's 3‐year term (1966‐1969) the Party was without Parliamentary representation. Nearly a decade later, this changed.
On 6 January 1978, the Prime Minister announced that a by‐election would be held in Rangitikei on 18 February, occasioned by the death of Sir Roy Jack, a former Speaker of the House and M.P. for Rangitikei since 1972. Rangitikei had been regarded as one of the most solid of the solid blue ribbon seats. In 1969 the Socred candidate had polled a mere 1,290 votes. When Bruce Beetham first stood he raised the vote to 3094 and in 1975 pushed it up further to 5875, only 1756 behind Sir Roy, with Labour firmly in third place. Beetham announced his intention to contest the seat again. Before the National and Labour candidates were selected on 24 January Beetham had canvassed the entire electorate, Beetham's personal campaign included thirty‐five scheduled meetings as well as an intense meet‐the‐people campaign around streets and factories. Four‐hundred‐and‐eighty attended Beetham's opening. All meetings were double the 1975 figures, with almost whole towns turning out to hear him in some parts of the electorate The slogan 'Give Him A Go' was everywhere, accurately summing up the mood of the people. The election provided a chance to register a massive protest against the two tired old
parties and really put Rangitikei on the map. Beetham told an audience: 'If you put in another National or Labour member you will get another backbencher who will be swallowed up on either side. If you put me in I won't be tied to either side. I will be my own man and say what I think.' It was Beetham versus the rest. He saw the campaign as a test of strategies ‐ between his planning and the tactics of the others. He was conscious of fighting thirty‐two Labour M.Ps and the whole National Cabinet ‐ Bill Rowling and Rob Muldoon were his real opponents. The others were ganging up on him in an 'unholy alliance'. Their dual aim was to defeat him and retain the status quo. Labour had made it quite clear it was more interested in bashing Social Credit than in seriously challenging National for the seat. The Nats were soundly beaten at their own game on election day. Over 500 Socreds had it all planned down to the last detail. Green and gold was everywhere. The air was electric, full of expectancy. History was about to be made. That evening 800 people jammed the Marton Victory Hall. It was congratulations all round. Beetham revelled in an election night majority of 1401. Rangitikei had broken with tradition. What the country believed would never happen, had.
A happy man at the 1978 election victory celebration. Guardian Political Review, Issue 65 - Page 9
(The Evening Standard)
1980
A night to remember By Colin J. Whitmill Extract from 'A History of the NZ Democratic Party ‐ the vehicle for Social Credit'
‐ more like a crusade than a campaign Had Prime Minister Muldoon the ability to foresee events of 6 September 1980 he probably would not have appointed Frank Gill, MP for the safe National seat of East Coast Bays, to the position of Ambassador to the United States. The probability of National losing the seat was remote.
commented: "It was not just something of that night. It was something about years of struggle, standing up to ridicule, of working when you were tired, of making sacrifices, of being disappointed and trying not to show it, of having faith that one day it would all pay off".
The by‐election could not have come at a better time for Social Credit, just following its Annual Conference in Christchurch. A television Eye Witness programme had been positive and newspaper comments were not unfavourable.
In political and publicity terms, it had been the best year ever for Social Credit.
At the end of 1978 the East Coast Bays branch had 139 members, but by the time of the by‐election membership had risen to 600.
by John G. Rawson (February 2014)
The Women's Weekly magazine described Social Credit's effort in the by‐election as more like a crusade than a campaign. Nearly a thousand people heard Bruce Beetham and candidate Garry Knapp open the campaign. Social Credit prepared a full election day organisation programme, having booths manned, 200 cars ‐ compared with eighty for National and fewer for Labour ‐ and 120 people manning telephones. Unprecedented jubilation swept over hundreds of Social Credit members and supporters at the Browns Bay Recreation Centre as results came in: Labour 3130, National 6616. Social Credit 7728, Values 137. An ecstatic Beetham arrived at the post election party to be given a thunderous reception, but had to wait to congratulate the 32‐year‐old winner Garry Knapp as the news media swamped him for comments. The editor of the Social Credit Guardian, Paul Hills
Guardian Political Review, Issue 65 - Page 10
An appreciation A key point was the absolute brilliance of Henry Raynel's organisation. On the lighter side, and I saw this personally, someone reported that a DRO was denying observers the right to wear ribbons. Henry stamped into the booth, pointed at our people and shouted "Put those ribbons on!" People of all parties looked abashed and then a bit hesitantly, put up their ribbons. That was it. The electorate was reasonably wealthy with good homes. And big mortgages, therefore conscious of money. Garry, well, who else could get, and lead, a group of people to risk their lives putting up at night a huge banner on the cliffs clearly visible from the Auckland side of the harbour. Or to get people to jog round all the entrances and exits of the motorway night and morning to turn round dozens of small signs so that they faced the prevalent traffic each time. I personally retain fond memories of Garry. Some people reckoned he wasn't a true Social Crediter. I observe people critically and hard, and I couldn't fault him.
1984
Gain one, lose one ‐ gerrymandering & vote buying
By Colin J. Whitmill Extract from 'A history of the NZ Democratic Party ‐ the vehicle for social credit'
Bruce Beetham welcomes new MP Neil Morrison to Parliament together with re-elected Garry Knapp.
During 1982 the Boundaries Commission ‐ on which Labour and National were represented but not Social Credit ‐ drew up new electoral boundaries. They carved out Beetham's home town, Marton, and 1,800 Social Credit votes, from the Rangitikei electorate and placed them into the safe National seat of Waitotara. Social Crediters viewed this as a blatant case of gerrymandering. Property millionaire Robert Jones was beginning to dominate the news media with a new party he had formed. The New Zealand Party was a whim, a fleeting escapade of a millionaire trying to have a greater say in a country's affairs, created by huge sums of readily available money and a fawning news media. It lasted one election before disintegrat‐ ing in a mire of personality clashes and disputes. While the creature lived, it badly damaged the Social Credit Party. Then Prime Minister Muldoon threw a spanner in the works. Late on Thursday 14 June 1984, he called a general election for Saturday 14 July 1984, a winter poll. In Pakuranga, candidate Neil Morrison was giving it a go for the last time. Morrison carried between 50 to 200 personal cards with the resolution not to return home until he had distributed all by hand at each door. The patter was simple. "Hullo I'm Neil Morrison. Here's my card. Let me know if I can help you". Master organizer, Henry Raynel, joined Morrison's team. Guardian Political Review, Issue 65 - Page 11
The New Zealand Party’s Pakuranga candidate, Josephine Grierson, distributed a pamphlet claiming that a National Research Bureau poll was putting it second to National, but the NRB had never polled Pakuranga. However, as Josephine Grierson admitted in the book she wrote of her political experience: “the Social Credit Party understood the street fighting tactics of the electoral system much better than any of the other parties”. Election night Saturday 14 July 1984 saw Neil Morrison rewarded for all his years of work for Social Credit by winning the seat. The final result was: Social Credit 8,271, National 8,099, New Zealand Party 3,804, Labour 3,101. Over in East Coast Bays, a sombre‐faced Garry Knapp appeared before the television cameras at the local courthouse to read the result: Social Credit 9,500, National 7,468, Labour 1,881, New Zealand Party 1,904. The sighs of relief and cheers that greeted these results found no repeat when the Rangitikei result was declared. The voters ‐ and the Boundaries Commission ‐ had put the boot in and kicked the Social Credit leader out by 504 votes. This gain did National little good. The voters took Beetham's advice and dismissed the Muldoon administration. Labour won 56 seats, National won 37. The New Zealand Party found that it could buy no seats.
1988
The occupation of Parliament
By Tony Cardy Extract from The Guardian Bulletin editorial, November 1988
In November 1988, twelve members of the NZ Democratic Party occupied select committee room 216 in Parliament Buildings to protest against a broken promise by the then Prime Minister, David Lange, to hold a referendum on proportional representation
We're fighting for something that's very, very important. We believe that this is a vital time in this issue. If we don't draw the public's attention to how important this issue is and keep the government honest on it's promise now, we may never see a just electoral system in this country Garry Knapp (Radio NZ News)
"On Thursday 4 November 1988. Knapp and eleven other Democrats entered Parliament Buildings, to which Knapp still had rightful access, and barricaded themselves inside a Select Committee room. They refused to come out.
I have ever done before nor have any of the members that joined me. We are responsible citizens." Garry Knapp's performance in front of the camera was responsible, reasoned and statesmanlike.
The protest concerned the Labour Government's failure to keep a promise to hold a binding referendum on proportional representation. Television, radio and newspaper coverage was extensive, and critical".
Was it effective? Radio N.Z. concluded with the comment "Mr Knapp says the protest will have been worth it if it advanced the cause of a just electoral system".
The leader of the Democratic Party summarised (above) why he initiated a form of Affirmative Action that gained nationwide media coverage of the Democratic Party and one of its aims, to an extent seldom before achieved. It was an action which took courage. It could, and to a certain extent did, draw unfavourable comment. This was to be expected from a media traditionally scornful of the party's objectives.
After the 'fireworks', many more people are aware of the whole issue. During the weekend a spot poll conducted by Auckland's Radio Pacific resulted in a 60% majority vote for proportional representation. The influential Council of Trade Unions declared their support for the Democrat's action, stating that "It's time the Government delivered on it's election promise to hold a referendum on proportional representation".
However, this was eclipsed by the mass of positive media presentation which featured the action as a leading news item on radio and television for three whole days ‐ including several prime time interviews with Garry Knapp.
THOSE INVOLVED
Was it irresponsible? Again to quote Garry Knapp speaking on Radio N.Z.: "We have tried to be very responsible in taking an action that none of us really wanted to take, it's very sad that we have had to go to this extent; it's not something that
Outside Parliament
Guardian Political Review, Issue 65 - Page 12
Inside Parliament (the 'Democrat Dozen') Garry Knapp, Gillian Abrahams-Dance, Edith Franicevich. Ron Gilberd, Ken Harris, Martin Lawrence, Doug Lever, Lowell Manning, Bill Owen, Dick Ryan, Harry Smith and Mike Wood. Terry Heffernan, Chris Leitch, Lee Knapp, Constance Baker, Caroline Holden, Sylvia Leitch, Gaynor Williams, Errol Baird, Bill Campbell, Peter Carter, Eric Elliot, Bill Henderson, Bill Holden, Tim Leitch, Andre Lipa, John Rabards and Colin Whitmill.
1991
Into the Alliance ‐ was this goodbye Major Douglas?
By Colin J. Whitmill Extract from 'A history of the NZ Democratic Party ‐ the vehicle for social credit'
Democrats sign up. l. to r. Dick Ryan, Chris Leitch, Margaret Cook, Margaret Hook, John Wright
In 1991, talks had been proceeding with other minor parties, New Labour, the Greens, and Mana Motuhake about an electoral alliance. In August, it was revealed that they hoped to have a structure with policies in place by the end of the year. Meeting in Jim Anderton's Parliamentary office, party representatives planned to put their proposals to their party respective conferences. The first conference was that of the Democrats in August in Hamilton. Over 200 delegates and observers attended attracted by the visit to the conference of Professor Hotson and American sociology professor Bob Blain of the Sovereignty movement. They had been invited to tour New Zealand by the Democrats and opportunity was taken to meet party members as well as the news media, A political first was achieved when political opponents, Anderton of New Labour, Rata of Mana Motuhake and Mike Smith of the Greens addressed the conference. Democrat leader Wright acknowledged that the Democrats would have to give ground, but the alliance would give them a new lease of life. After debate, the Democrats endorsed the proposal that they enter an alliance. On 1 December 1991, the Democrats signed to join the Alliance, a group of four parties. Soon after, the Liberals, a group of liberal former National Party members, joined the coalition. They brought with them an MP, Hamish Mclntyre. John Wright in the Guardian Bulletin of November 1992 said: "The basis of our party has always been our monetary reform policy, along with electoral reform and industrial reform. The Alliance does not replace these fundamental objectives, rather it is a vehicle to enable us to achieve sufficient MPs to implement our ideas". There would be no Democratic Party candidates in the 1993 general election. Would there be mention of monetary reform? Was this goodbye Major Douglas, or the beginning of a brand new bright day for social credit? Guardian Political Review, Issue 65 - Page 13
I was there.
By Margaret Cook (February 2014)
There was an air of suppressed excitement, a sense of history in the making, as the leadership of four New Zealand Political Parties gathered in Auckland to sign an agreement to work together as one under the banner of The Alliance. Amongst the signatories were Jim Anderton and Matt Robson of New Labour, Matiu Rata and Sandra Lee of Mana Motuhake. Rod Donald and Jeanette Fitzsimons of the Greens with John Wright and Chris Leitch from the Democrats. I was there in my role as Democratic Party Vice President and also signed the document. Such a lot of work had gone on before getting to this stage: negotiating policies and processes from four distinct viewpoints was never going to be easy and all had to give way during the initial discussions. Of course Democrats fought hard to educate our colleagues in the social credit way, with some wins but not total acceptance. Democrat candidate Trevor Barnard was moved at a later stage to note that he was pleasantly surprised at how much Democrat policy was included in the Alliance manifesto. Lowell Manning played a big part in getting that done, but was eventually disappointed at the lack of social credit inclusion. What the Alliance offered the Democratic Party was an opportunity: ∙ To get sympathetic exposure to a wider voting market ∙ To gain parliamentary representation again ∙ To continue educating a captive audience in social credit financial reform History records success in the first two opportunities, with limited success in the third. But on the day the speeches of the leaders, while noting the differences amongst them, emphasised the positive outcomes that were available by this coalition agreement
1992
The Tamaki challenge National and Labour running scared By Colin J. Whitmill Extract from 'A history of the NZ Democratic Party ‐ the vehicle for social credit'
On 17 November 1991, National's MP for Tamaki, Robert Muldoon, told a radio audience that he was leaving politics. In this its first test, the Alliance chose Chris Leitch of the Democrats to represent it at the 15 February 1992 by‐ election. Together, the five minor parties worked hard to convince Labour voters that the best way to rid themselves of National was by voting for the Alliance. Hopes were high for success with the Auckland Democrats bringing all their experience of canvassing, campaigning and rallying votes to the Alliance. A Democrat in Parliament would be a boost to the Party within the Alliance. The threat to National was so great that it provided Labour with its canvas records to help Labour bolster its own core support. At the 1990 general election, the combined votes of the Greens, New Labour, and the Democrats totalled 3,556 with Labour on 4599 and National on 12,191. However, while hopes were high, the combined National/Labour effort was too strong for the Alliance. National slumped to 7,901 while Chris Leitch polled 6,649 and Labour 2121. Footnote: At the 2013 Conference, Chris Leitch was elected DSC Deputy Leader
A personal view by Martin Lawrence From the Guardian Bulletin, April 1992
Election Day was a kaleidoscope ‐ a succession of images of vast collective energy and hope. Images of refreshment tables groaning with the weight of food as we rested briefly from our labours before, as busy as bees, we buzzed forth to secure the honeyed vote. Of the fantastic cheerfulness and sense of co‐operation between so many people; that intense feeling of unity in a common cause that brings out the best in spirit ‐ united in a just cause, buoyed by ideals and the common good. Of order amidst chaos, smiling faces everywhere, ribbons fluttering ‐ and a vivid personal memory of literally running through driving rain half an hour before polls closed, still urging people to vote. When I look back at the event of February 15, I experience feelings as diverse as hope and anger, optimism and cynicism, pleasure and regret ‐ but, above all, one of determination. Hope ‐ as the public will now view the Alliance as a serious, intelligent, well‐organised and viable political option. Anger ‐ at the tactics used by National and Labour parties and their cronies: innuendo, attempts at character assassination, and their ability to use the media, Optimism ‐ reinforced by the level of support for the Alliance voiced by my acquaintances, colleagues and friends, many of whom have hitherto been neutral or even opposed to my views. Cynicism ‐ at National/Labour hypocrisy, not Government and Opposition ‐ but partners. Helen Clark and Verna Smith welcomed to National Campaign HQ as "our friends from the Labour Party". Pleasure ‐ at the magnificent co‐operative effort that enabled us to do so well. We made friends and grew in strength. Regret ‐ that we didn't quite make it, and that many Tamaki voters did not seize the opportunity to express their disillusionment.
Chris Leitch at Alliance Tamaki HQ. with Mike and Sandra Lee.
Guardian Political Review, Issue 65 - Page 14
And, finally, determination that we Democrats, both as an entity and as part of the Alliance, seize the opportunity which confronts us ‐ with intelligence, effort, commitment and courage.
1996
The MMP Election John Wright and Grant Gillon enter Parliament on the list By Colin J. Whitmill Extract from 'A history of the NZ Democratic Party ‐ the vehicle for social credit'
With a new MMP electoral system for the October 1996 general election, what mattered was the place Democrats had on the Alliance list. The final list showed that the Democrats had one in the first ten places: John Wright at number 4. Grant Giiion was the next Democrat at place 11 and Heather Anne McConachy in spot 18. There were 3 Democrats in the first 20 places compared with 6 from New Labour, 4 from Mana Motuhake, 2 Liberals and 5 Greens. This was not the equal representation for which Democrats had voted in 1991 and it made many unhappy. The election had 21 registered parties vying for list votes. Anderton won his new constituency seat of Wigram for the Alliance, which secured 10% of the list vote, entitling them to another 12 members of Parliament: 5 New Labour, 3 Greens, 2 Mana Motuhake, 2 Democrats and 1 Liberal. National, with 44 seats, retained power by forming a coalition with the New Zealand First party which had 17 seats. In opposition were 37 from Labour, 13 from the Alliance and 8 from the far‐right monetarist party ACT. The Democrats were back in Parliament! Or were they? Were they not members representing the Alliance and not the monetary reform Democratic Party? But there was great optimism that monetary reform would again receive public attention as the two MPs could put the case ‐ as had in the past Cracknell, Beetham, Knapp and Morrison. Wright opened magnificently with his maiden speech in Parliament lauding monetary reform. But that was the end of it. That was to be the whole show in the six years that both Wright and Gillon were in Parliament. Had they been told not to mention monetary reform, but to act according to the Guardian Political Review, Issue 65 - Page 15
Alliance policy and to act as Alliance not Democrat MPs? Democrats continued their normal party meetings, but spent most of their time working hard for the Alliance in campaign‐ ing and raising funds. Those members who didn't fancy this either walked away, resigned or looked elsewhere to pursue political hopes. But just what progress was being made to convince the Alliance to accept monetary reform or even full social credit? The answer came in an Alliance major policy paper called Towards a New Monetary Policy, a title which sounded hopeful until one read the document. Within it came the statement that financial institutions offer people a rate of interest for depositing their savings and then on lend the money to businesses and consumers. The Democrats had been exposing this myth since their political formation in 1954 and here was the Alliance trotting it out in what turned out to be support for the financial status‐quo. From then on, the NZDP Guardian Bulletin showed, through letters and articles submitted by members, a rising tide of discontent with the Alliance adventure.
2002
Identity reclaimed! 'It takes courage to stand apart'
By Colin J. Whitmill Edited extract from 'A history of the NZ Democratic Party ‐ the vehicle for social credit'
Something to celebrate! At the head of the table a new leader - a new identity
In April 2002, Jim Anderton announced that he was leaving the Alliance to set up his own party called the Progressive Coalition. Grant Gillon said the new party would be to the left of Labour, but more to the centre than the Alliance. In August, the NZDP executive met and decided to present to the annual conference the question of remaining with Anderton or going it alone. In a Guardian article written before the annual conference, Derek Papps wrote: After observing the anonymity of the Democrats within the Alliance and once again inside the Progressive Coalition, why not gain the high ground in terms of exposure and identity by leaving the Progressive Coalition and once again being a truly sovereign party? Time is too short to settle for second best any more. No other party has a message or policies as fundamentally important as ours, in determining a secure and prosperous future for ourselves and generations to come. Jim Anderton opened the NZDP annual conference held in Christchurch from 11 to 13 October 2002. He, with John Wright and Grant Gillon, spoke in support of staying with the Progressive Coalition. Gillon put the motion that the party remain with the Coalition, but the proposal was defeated by 58% to 42%. Not unnaturally, Gillon did not seek re‐election as party leader. Stephnie de Ruyter, as deputy leader, was lobbied hard by Guardian Political Review, Issue 65 - Page 16
senior Party members to stand as leader. When put to the vote the support was unanimous. The decision to regain independence brought media recognition and mention of the Democrats on their own. Stephnie de Ruyter proclaimed: The decision to re‐assert the Democratic Party's political independence is a reflection of the maturity, courage and confidence of Democrats across New Zealand. It takes a mature outlook to see that it is through independence that we retain our political integrity as monetary reformers. It takes courage to stand apart from those with whom we have worked in good faith and with goodwill, but who do not share our passion for economic justice. Footnote By Geoff Morel!, Washington DC. Guardian Bulletin. Summer 2002 We are back to the drawing board, not hanging on anyone's coat tails. If it is good enough under MMP for some new parties to establish themselves, what about monetary reformers? So let us be different, in every way. Dig out the old manifestos and upgrade them. Remember, we were the first to promote an environmental policy, and we had the means to implement the policy. Every other party is wedded to debt finance. I think of the dedicated men and women who gave their very souls to assist in achieving what they believed to be right. Self sufficiency. Getting out of the mesh of interest payments from international loans. Using the resources of one's own nation. Get back to our roots. Talk social credit. We worked hard to achieve a change in the voting system. Now let us use it to advantage. On our own!
A tribute From Chris Leitch
While the successful campaigns the party has had over the years have seen a few become household names, behind the scenes an army of willing workers have sacrificed time, effort, money, and family to build the base for those successes. While these pages cannot adequately recognise all of them, they are an attempt to honour just a small sample of the pillars upon which our party has been built. Cecil Elvidge. Kerikeri. In the early days of the League Ces was one of the foremost “gurus” of the movement, and certainly in the North the authority on technical social credit to whom others deferred. He was the League’s first Vice President, and Dominion Secretary and gained 2nd place in Hobson with 28.8% in 1954. He is credited with converting Vernon Cracknell, who lived a little further up Access Rd. from his home. Vern would often stop on the way home from his accountancy office and they would discuss economics. Like so many people versed in the old concepts of finance, Vern found Cecil’s message disturbing. He often went home in a very angry state, but a week or so later, he would come back for more. Shirley Thompson. Te Kauwhata. A prominent member of the Raglan Electorate, prepared to do the hard work and let others do the thinking until she realised that perhaps these “others” did not know everything. She embarked on a furious campaign to “get it all right”. Thereafter, one of the highlights of early conferences was after‐hours sessions convened by Shirley to debate the fine points of Social Credit. More than one future candidate gained wisdom from this process. Her son, Alisdair, was too young to attend at that time. His education obviously came later. This was the mood of the League at the time ‐ enthusiastic, forward‐looking and determined to succeed. Wilfred Owen. Christchurch. The League’s first President and Leader (1953 to 1959). A prominent businessman, Wilfred gave the League respectability, contacts, and a significant amount of money, without which it would possibly have become defunct. His cautious approach, similar to that later adopted by Cracknell was not favoured by ”Old Social Crediters” who thought the “gap” was huge and that we could “promise the earth”. According to some of them he “did not understand Social Credit”. Ted Colechin. Christchurch. Ted first stood in Riccarton as an independent. From 1935 he was NZ Secretary of the Economic Reform Club and fulltime secretary for the League in Christchurch. He was a key activist who is credited with “resurrecting” the organisation and went on a nationwide tour in 1953 with Owen. Ivan Blackmore. Paparoa. Ivan was a down‐to‐earth farmer who didn’t suffer fools gladly. As a Vice President of the League, his blunt approach got many things done sooner than might have happened otherwise. He was Convener of the Campaign Committee until 1968. His ruthless approach to raising funds and avoiding waste was effective in keeping the party strong. He was one of the driving forces in Nevern McConachy’s early campaigns. His campaign methods were direct, for example his advice to a young candidate complaining of the difficulty of constructing a speech. Words equivalent to “Base it on the Tenets you stupid b…!” set that young man right for decades to follow. Guardian Political Review, Issue 65 - Page 17
Joe Blaymires. Te Puke. A well‐respected farmer, Joe was also the learned President of the Association at the time. He stood as candidate for the Bay of Plenty Electorate in 1954, and 57. Joe didn’t believe in organisation, financed his own campaigns and went round in a vehicle in which he could sleep, mostly declining hospitality from supporters. He finally unbent a little when a sub‐branch with forestry connections was formed and foisted on him in the Pongakawa Valley. His knowledge of Social Credit was immense, and often put to good use. Bob Young. Hamilton. Bob was dominion secretary in 1953 and became Deputy Leader in 1954. Bob was the Returned Soldier warrior who toured a large part of the country in 1953 and encouraged known Social Crediters to start branches of the League. A retired farmer whose savings had been eroded by inflation, he nevertheless put everything he had into getting the organisation established. When he travelled by rail he found it necessary to go “Second Class”, perhaps sitting up all night on the main trunk nursing his war‐wounded leg. One known example of his work was his visit to Whangarei, where he persuaded Geoff and Doris Rawson, long time supporters of Captain Rushworth in the Bay of Islands Electorate, along with a respected Salvation Army officer there, to start the Whangarei branch. Fred Morgan. Wellington. Fred was always an impressive contributor at conferences. He was a candidate in 4 elections, vice president, and party secretary. He was a practical worker and held together such organisation as existed in the Capital. For example, in 1973 he organised a team to strip saleable material from a city building that was being refurbished and sold it to get funds for the Party. Fred Jordan. Fred first stood as a Liberal Party candidate for Parnell, and was president of the Douglas Social Credit movement. He was the League’s lawyer delegate at the Royal Commission on Money, Credit and Banking systems in 1955. Henry Raynel. Auckland. Henry is New Zealand’s most knowledgeable “pure Douglasite” but unlike some, willing to consider courteously other people’s opinions. Henry was influenced by the likes of Fred Ralfe, Harry Angus, and Bill Kennedy in Tauranga. He accepts Douglas’ dictum that political organisation is a wrong procedure, but that didn’t stop him conducting brilliantly successful campaigns for Bruce Beetham, Garry Knapp and Neil Morrison. Henry is a master organiser and tireless worker. When you worked with Henry, you worked and you did it willingly because he would never waste your Henry Raynel at the 2004 Conference time.
(Continued from previous page)
Eric Elliott. Kapiti Coast. Eric stood as a candidate on six occasions, despite considerable physical difficulties and typified the enormous commitment he, and many others, had to the social credit cause. He door knocked, raised money, sold raffle tickets, and always had a ready smile and open door. Nevern McConachy. Whangarei. Nevern first stood as a candidate in 1963, having joined after listening to a speech by Gerald Hunter. Together with other local enthusiasts (Jack Furness, Harry Langridge, Ham Worsfold, Ivan Blackmore, Jack & Noreen McKenzie, and others ) they set up sub‐branches across the Rodney electorate. In 1978, with an enormous team effort behind him, (1400 paid up members, 300 election day workers) he came within 520 votes of winning the Kaipara seat. He was a dominion councillor, member of the policy and technical committees, chairman of the campaign committee from 1976 and chief architect of the campaign strategy which built the party to the height of its success in 1981. His “Target 81” campaign booklets to conferences will be long remembered, as will the “Beetham Dwyer” fundraising campaigns. He stood as a candidate 5 times. Don Bethune. Hamilton. Don was President from 1972 to 1975, having previously stood as a candidate on four occasions. He is credited with being the major influence on Bruce Beetham joining the League. He was a key part of the new young team that rebuild the organisation from the ashes of the 1972 conference. Don was a strong advocate of CH Douglas philosophy, and became the first president of the Social Credit Institute. Les Hunter. Palmerston North. Les joined the League in 1969 and
from 1972 held the positions of Deputy Leader, Finance Spokesman, and Parliamentary Research officer when Bruce became an MP. Les was brilliantly analytical, and one of the country's finest intellects, although often lost his audience in intricate detail. He was a prolific writer penning a numerous books including “Industry and People”, “Cause and Cure”, “Better Democracy”, Inflation & People”, “And Now Social Democracy”, and “Courage to Change”. He stood as a candidate 6 times.
Stefan Lipa. Auckland. Stefan was introduced to Social Credit by
Tom Weal, who was Deputy‐Leader of the League from 1970‐72, and one of his teachers at St Peter's College. He joined the League as a law student at Auckland University. Stefan became the League's first full‐time President in 1979. He guided the party through the heady days of by‐election and general election wins and massive fundraising and membership campaigns – the most successful time in the organisation’s history. An ardent opponent of the name change, he stood down in 1988.
George Bryant. Waikato. George, a teacher and later headmaster was another prolific writer, penning “You and Your Environment”, “A New Society”, “Beetham”, “People and Society”, “What We Stand For”’ “Sting in the Beehive”, and the 1975,1978, and 1981 Manifestos. He was the convenor of the “Taupo Think Tank” a hard hitting look at the party and its image, was President from 1976 to 1979, and a candidate twice. Margaret Hook. Hamilton. Margaret joined the party after hearing Vern Cracknell address a meeting in 1968. In Whangarei, she became Secretary of the Party's Divisional Council. After moving to Auckland in 1990, Margaret, with her organisational skills, took up the position of Party Secretary under President Chris Leitch. Moving close to family in Hamilton, Margaret acted as Party Membership Secretary. A lifetime of loyal and effective service. There are many others – too many to mention ‐ and details that have inevitably been missed. What cannot be missed, however, is the sacrifice of so many wives, many of whom worked behind the scenes in the party directly and in the support of their husbands and families, and who, in doing so, played a crucial role in the party’s successes. To them and the many men like those mentioned in these pages, who have contributed selflessly so much to make New Zealand a better place, we salute you. Guardian Political Review, Issue 65 - Page 18
Speaking for you Standing for Parliament 2014 DSC leadership and spokespeople Stephnie de Ruyter, Leader, Spokesperson for Energy, Invercargill Electorate candidate. Stephnie stands for alternative economic solutions; a just society; and a healthy planet. She is a Southlander with a strong service ethic and family focus. Stephnie is a pro‐active, energetic, politically experienced candidate. She understands what drives the south: dairying, sheep farming, fishing, forestry, manufacturing, industry, education, its people. Chris Leitch, Deputy Leader, Spokesman for Finance and Regional Development, Whangarei Electorate candidate. He stood as a candidate in the by‐election in Tamaki in 1992 coming second in the safe National seat, reducing the former 8500 vote majority to just 1200. Chris is a former elected member of the Auckland Regional Services Trust that managed key infrastructure assets and millions in downtown properties in the mid 90’s. He is also a former trustee of the Waitamata Electricity Trust. John Pemberton, President, Spokesman for Democrats for Social Credit, Taupo Electorate candidate. John has been a biosecurity field officer for 41 years. Besides his interest in politics, John has created his own website, including a useful range of finance calculators. He was the first in New Zealand to create a calculator for KiwiSaver. John’s website tracks economic innovations in New Zealand and around the world. Katherine Ransom, Vice President, Spokesperson for Social Issues and Housing, Waikato Electorate candidate. Katherine is currently a copywriter for Words For Breakfast; she has also written many plays and screenplays. During her term as Economics Convener for the National Council of Women, she has written formal submissions to Parliamentary select committees on behalf of the NCWNZ. Involved in theatre since kindergarten, Katherine’s decades of performance experience stand her in good stead during election campaigns. Barry Pulford, Spokesman for Environment and GE Issues, Napier Electorate candidate. President of the Eastern Region, Barry's vision for NZ includes strong conservation values and a basic income. His qualifications in environmental management reflect his concerns about contemporary issues such as water and air quality. Barry lives in Flaxmere and works in the retail grocery sector. Warren Voight, Spokesman for Local Government, Spokesman for Broadcasting, Dunedin South Electorate candidate. Warren is a Dunedin resident ‐ born, raised, educated, and married in the area he aspires to represent. He commenced his current practice as a massage therapist in 2000. Warren is a life‐long social credit activist who believes in individual responsibility. He is an Otago Broadcasting Society committee member, a representative on Hills Radio Trust, and a voluntary fund raiser for community radio. Alida Steemson, Spokesperson for Education, Spokesman for Arts, Culture, & Heritage, Ohariu Electorate candidate. Alida has had a lifelong involvement with the theatre. She is experienced at acting, producing, promoting and selling productions. Alida was elected to the Hamilton Arts Council in 2000, where she allocated funds and worked to facilitate, communicate and promote arts within the community. Alida brings a breadth and depth of experience in management, small business and customer service. Hessel Van Wieren, Spokesman for Justice, Waitaki Electorate candidate. Hessel was born in New Zealand to Dutch parents. He started his career with the NZPO in Christchurch, mainly in the banking sector. Over the last 25 years Hessel has been self employed in property maintenance, living and working in Cromwell. He has served on the local Youth Trust for ten years, including a term as chairman. Hessel credits his father for influencing his political direction, believing that Social Credit, with its ethical and just monetary reform policies, was the only party worth voting for. Harry Alchin‐Smith, Spokesman for Small Business, East Coast Electorate candidate. He is adamant that a productive, egalitarian society for New Zealand depends on healthy, independent farming and small to medium business, served by dependable rail and road transport. As a former Deputy Leader and with three campaigns in Gisborne, Harry has the knowledge and experience to make an outstanding contribution to the East Coast community. Besides his farming and business background he has received civic honours for his contributions to the local arts as teacher and conductor of brass and concert band music. Heather Marion Smith, Spokesperson for Seniors, Whanganui Electorate candidate. Heather holds a degree and a post‐graduate diploma in Economics with a special interest in public sector funding. She recently held the Local Government portfolio, having written and spoken to submissions to local bodies and to Parliamentary Select Committees ‐ not only as a Social Crediter but formerly as Economics Convener for the NZ National Council of Women. Heather has held responsible posts in several government departments, later becoming a secondary school teacher before retiring. David Wilson is the Democrats for Social Credit Party's Transport Spokesman, Northland Electorate candidate. As the owner/operator of a transport business, Paparoa businessman David has first‐hand knowledge of all aspects of the transport sector. He wants a better deal for Northland residents, especially in the jobs, housing, and healthcare areas. A former Party president, he is passionate about the need to empower Kiwis by establishing a social credit economy and has worked towards this goal for many years. Cdr Dick Ryan, Spokesperson for Defence, Tutikuki Electorate candidate. Born in Dunedin and educated in England, Commander Dick Ryan spent twenty years in the Royal Navy, flying with the Fleet Air Arm on active service. He also qualified in submarines, had two years in Antarctica and was leader of the International Helicopter Search and Rescue team. Following two years study in Social Science and Alternative Technology, he returned to Auckland with his wife and family, instructing in Management, Leadership, and Systems Approach for RNZN. Dick was appointed as a Director of the Commission for the Future in Wellington.
Guardian Political Review, Issue 65 - Page 19
You can buy New Zealand if you want By Andrea‐Marie Bartholomew, Auckland
T
hank goodness you can't buy your way into Heaven ‐ otherwise it would be filled by rich, self‐seeking, self‐ gratifying, arrogant people confident of their entitlement to anything they want. However, you can buy your way into New Zealand and have your way here. Those with long memories, or read history, may recall the Pakatoa Island affair where someone was allowed to enter the country, because it was believed he had money, was to buy Pakatoa Island and develop it and create jobs. It turned out the fellow was required by the German judicial authorities to answer criminal charges and so was removed from New Zealand. The removal process was also applied to a Taiwanese who bought his residency visa. His ruse was to borrow the entry fee, then of half million or so, and bring it into New Zealand and qualify as an entrepreneur who could help build the country and create jobs. His downfall was he then had to repay his debt. A writer to the Dominion Post [22 May 2014] complained about residency being granted to a hijacker and questioned why he and his family, who were highly qualified, were not allowed entry until he had lost weight. The obvious answer, as seemingly evidenced by the founder of a new political party, is that he was not bringing in a bag of money. How come the rich can buy residency and citizenship ‐ in one case at least ‐ despite officials recommending that these not be granted? The answer is bags of money and the magic words ‐ the holy grail of New Zealand's immigration policy under both Labour and National ‐ your presence and activity would help create jobs! Then when you're here, you can then buy access to government ministers and influence decisions. Of course you don't actually have to live here ‐ a few days a year perhaps, but not really live here. We know that the influence peddlers with their money and party political donations are preferred by the political elite. In mid May Prime Minister Key said ‐ inter alia ‐ the Labour Party accepted $60,000 from Phillip Mills ‐ Labour and the Greens accepted $60,000 and $65,000 respectively ‐ and very soon afterwards the Labour Party started promoting green growth. ''We know that Shane Jones, for instance, had his leadership bid funded in part by the oil and gas sector and, again, very soon came out and started talking about that." The Otago Daily Times [24 May 2014] reported on an
Guardian Political Review, Issue 65 - Page 20
Easier entry for some? PM John Key tests new 'smartgate' passport control at Auckland Airport
investigation by Bruce Munro and observed that "The number of paid lobbyists with their own parliamentary swipe card has increased dramatically in the past year. So too has the whiff of cronyism and corporate influence in the affairs of state" "Because, although New Zealand has a comparatively robust and accountable system of government, there is a growing disquiet that where there is the smell of smoke, it would be prudent to suspect fire. Questionable cases abound." A Tom Scott cartoon in the Dominion Post [13 May 2014] summed the matter up. A soaked woman is asking to speak to the Prime Minister as her home was under water again. A burly guard replies "Sorry lady, you can't jump the queue ‐ that would be unfair on people who have paid a thousand bucks for face time with the PM". From www.democrats.org.nz
Superannuation really is affordable By Chris Leitch, DSC Deputy Leader; Finance Spokesperson
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en minutes of talkback radio is enough to convince one that there are a myriad of points of view on every subject, and even a discussion with mates over the All Blacks elicits a wide range of opinions. So one of the things I find very disconcerting is the penchant of commentators on critically important economic and social subjects, to continue parroting the opinion of one another rather than looking at other angles. One such case is the debate over the wave of retiring "baby boomers", whose keep, we are continually told, will be "a massive drain on our resources", "an impossible burden on a smaller workforce", and "unaffordable". I find myself at odds with Prime Minister John Key on almost everything, but his refusal to increase the age of eligibility for the pension gets a big tick. If you think that as a product of the 1950’s I have a vested interest, you are right. Like most people my age I want to be able to stop working soon and enjoy some leisure time in retirement. The reality is that a decent pension, from age 65, really is affordable. Getting your head around that statement rather than writing if off as ridiculous and not reading any further will require some open‐ minded thinking and may challenge some long‐held views ‐ so here goes. Government debt is projected to reach $70 billion in 3 years, by which time $4 billion of our taxes will be going to pay interest on that borrowing every year. That debt has risen from $10 billion in 2008 – an increase of $60 billion over 9 years. What that really means is that the government will have borrowed an average of $6.5 billion annually. The International Monetary Fund paper of August 2012 titled the 'Chicago Plan Revisited' analysed a proposal by eminent economists Henry Simons and Irving Fisher, for the separation of the monetary and credit functions of the banking system. They claimed that “Allowing the Government to issue money directly at zero interest, rather than borrowing that same money from banks at interest, would lead to a reduction in the interest burden on government finances and to a dramatic reduction of (net) government debt, given that irredeemable government‐issued money represents equity in the common wealth rather than debt”. The paper’s authors stated “We take it as self‐evident that if these claims can be verified (there were other claimed benefits), the Chicago Plan would indeed represent a highly desirable policy”. What that means is that if the government could fund its borrowing requirements from the government owned Reserve Bank rather than borrowing from overseas owned financial institutions, government debt would reduce to zero, and $4 billion in tax revenue, rather than being wasted on interest payments every year, would become available for things like superannuation payments. Under the Chicago Plan, “what would cease to exist however is the proliferation of credit created, at the almost exclusive initiative of private institutions, for the sole purpose of creating an adequate money supply that can easily be created debt free.” But, hang on a moment, you’re thinking, banks don’t create money, I thought they just lent out money that people deposited with them……don’t they? No they don’t. Here’s what the Bank of England in its quarterly bulletin issued just last month has to say “One common misconception is that banks act simply as intermediaries, lending out the deposits that savers place with them.” “…..rather than banks lending out deposits that are placed with Guardian Political Review, Issue 65 - Page 21
them, the act of lending creates deposits. Commercial banks create money. Of the two types of broad money, bank deposits make up the vast majority ‐ 97% of the amount currently in circulation. And in the modern economy, those bank deposits are mostly created by commercial banks themselves.” So every loan, made to you for your mortgage, to every business to buy new equipment, or to the government for it to spend, is created out of thin air. If you didn't know this already, I’ll bet that challenges your thinking. If the government was to adopt a process like the Chicago Plan, and create its own money instead of borrowing from the banks it could save $4 billion per year in interest payments, plus it wouldn’t have to pay back the $6.5 billion per year it has been borrowing. That’s a total saving of $10.5 billion per year – about what superannuation currently costs. As our population ages, superannuation payments are increasing by about $700,000 per year so we could fund superannuation for at least another 15 years without any other factors coming in to play, like a growing economy, or a higher level of government created money. Right now, there’s another thinking moment ‐ but, but……govern‐ ment creating that amount of money would be inflationary, wouldn’t it? Not according to the IMF report ‐ “We find that the advantages of the Chicago Plan go even beyond those claimed by Fisher”. “Another advantage is the ability to drive steady state inflation to zero…..” “The ability to live with significantly lower steady state inflation also answers the somewhat confused claim of opponents of an exclusive government monopoly on money issuance, namely that such a system, and especially the initial injection of new government‐issued money, would be highly inflationary. There is nothing in our theory that supports this claim. And there is also virtually nothing in the monetary history of ancient societies and of Western nations that supports this claim.” And remember the government is already spending $6.5 billion of bank created money into the economy each year – without any disastrous consequences (apart from increased interest payments). Then why isn’t the government using the Reserve Bank for its funding right now instead of borrowing from overseas banks? Well, according to the Minister of Health Tony Ryall in a letter dated September 2012, “Because doing so would not align with the Government’s fiscal policy”. So even though the government could make superannuation affordable, reduce inflation to zero, have no debt, and save taxpayers $4 billion per year in interest payments, it doesn’t do so because “it doesn’t align with the Government’s fiscal policy”. The Opposition also subscribe to this crazy “fiscal policy”. There is no need for additional legislation to allow this proposal to proceed. The Public Finance Act (1989) already permits the borrowing of funds from the Reserve Bank of NZ “on terms favourable to the public interest”. I stand by my earlier claim: the reality is that a decent pension from age 65 really is affordable ‐ and I’ve demonstrated how it can be funded. If you’ve managed to get this far ‐ and it hasn’t got you thinking and more than a bit angry that the debate over the “unaffordability” of superannuation is totally unnecessary ‐ then enjoy your retirement at age 70 on half the current rate.
Fighting for pure water Contributed by Don G Church, Fluoride Action Network (FANNZ)
The Fluoride Action Network New Zealand (FANNZ) was established some years ago as a result of a visit by Dr Paul Connett who is the founder of the Fluoride Action Network in USA. The prime objective of FANNZ is to achieve a fluoride‐ free status throughout NZ by campaigning for the cessation of artificially fluoridated water supplies.
re‐fluoridate its water supply. This Review has been requested on the grounds that the Local Government Act requires special public consultation before it can make a decision to re‐ fluoridate and that this consultation has not occurred. Because of the Judicial Review hearings and the Appeal Hearing, Hamilton’s water was fluoride‐free for 11 months but it has since been reinstated as from 3pm on 3 July 2014.
Initially much of the action was in the South Island with successful campaigns to either cease The Kapitii Coast District Council is fluoridation, or to prevent the also facing a Judicial Review taken by a The prime objective of FANNZ is to commencement of fluoridation, in the achieve a fluoride‐free status throughout local resident and member of FANNZ centres of Timaru, Oamaru and NZ by campaigning for the cessation of over its 2010 decision to retain its Ashburton. A similar campaign in fluoridation policy. The council vote at artificially fluoridated water supplies Methven was unsuccessful. Presenta‐ that time was an even 5/5 split. The tions have also been made to the claim taken to Judicial Review is that one Dunedin City Council and, although the council did agree to of the councillors voting to retain fluoridation had a conflict of reduce the level of fluoride to 0.75 ppm, it has continued interest and should not have voted. If the case succeeds it with its fluoridation policy. would change the vote to 5 to 4 against fluoridation.
Most of the South Island now enjoys fluoride‐free water. Apart from some smaller towns, such as Methven, the only significant fluoridated population centres are Dunedin and Invercargill.
Over the last three years the activity has shifted primarily to the North Island. Dr Paul Connett again visited New Zealand in February 2014 for a speaking tour covering Wellington, Kapiti Coast and Auckland. FANNZ has also been very active with presentations to councils in many other North Island centres. Councils that took the decision to stop fluoridation were Central Hawkes Bay, Taumarunui, New Plymouth and Hamilton. Referendums were held in Hastings and Whakatane (which both voted to continue with fluoridation), and the Far North (which voted to stop). The Kapiti Coast council voted to reduce the fluoride concentration to 0.75 ppm and Dunedin City Council voted to reduce to 0.7 ppm. Hamilton City Council, after a 4 day tribunal hearing, voted 7 to 1 on 5th June 2014 to end fluoridation. Fluoridation ceased on 21st June. This caused a violent reaction from pro‐ fluoridation parties who collected sufficient signatures to force council to agree to a public referendum on the matter. After a well‐funded pro‐fluoridation campaign by the MoH and DHB, the referendum result was strongly in favour of fluoridation. But council decided that, before reintroducing fluoridation, it should await the outcome of a Judicial Review (requested by New Health NZ) against the South Taranaki District Council (STDC) with the intention of stopping the STDC’s intention to fluoridate the water supplies of Patea and Waverly.
During May 2014 FANNZ has submitted to the Wellington Council. These submissions have been gaining some traction towards achieving agreement for a possible Tribunal Hearing on whether or not Wellington should continue with fluoridation. Fundraising to cover legal costs has been commenced (see www.fannz.org.nz). In recent weeks FANNZ has mounted a collection of television advertisements against fluoridation. These include a clip by dentist Dr Lawrie Brett opposing fluoridation. For the rest of 2014 FANNZ is committed to continuing its campaign of addressing the various councils on the subject of fluoridation. FANNZ now has several dentists and doctors within its membership who have been most helpful in presenting to councils and therefore adding their professional‐ ism to the cause. Footnote: The DSC, with its policy of opposing compulsory medication, fully supports the efforts of FANNZ.
The decision of the above‐mentioned Judicial Review was released in March 2014. The judge concluded that “the fluoridation of water is not a medical treatment for the purpose of s11 of NZBORA” and that therefore the South Taranaki District Council did have legal power to fluoridate. This decision has now been appealed and a date for the Appeal Hearing is still awaited. On 20 February 2014 another entity called “Safe Water Alternative New Zealand” (SWANZ) has also applied for a Judicial Review of Hamilton City Council’s voted intention to Guardian Political Review, Issue 65 - Page 22
Success in Hamilton created a violent reaction and a wellfunded opposition campaign from pro-fluoridation parties
Government‐driven social division on both sides of the Tasman By David Tranter B.Ed (Oxon), B.A. (Canty). DSC Health Spokesperson
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hose of you who follow events in Oz will have noted the Abbot government's claims concerning their recent budget that they haven't broken pre‐election promises (Yeah, Right!) and that the pain they have been "forced" to inflict because of Labor's (please excuse the Oz spelling) wasteful years is being "equally shared" (Yeah, Right! again). Subsequent analysis of the budget shows, for example, that many people on high incomes will suffer less than a 1 percent drop in their income and that some will actually benefit. In contrast many on low incomes will lose between 15 and 18 percent of their income. Then there's the 6 month in each year complete withdrawal of all benefits for young people who aren't either in education or work. Given that around 100,000 extra education places will be required for the first category (the budget includes cuts to education) and that there appears to be no provision for new jobs for young people, where is this going to lead? Social support groups say more youth crime for the desperate and more suicides for those who see absolutely nothing in life for them. Already the greatest cause of death amongst young Australian men is ‐ suicide. Another analysis shows that an immediate effect of the budget is to take away approximately $1 billion from businesses while $20 billion is slashed from welfare. "Equally shared"? Of course the politicians are "equally" sharing too ‐ with a 12 month freeze on salary increases. Poor things ‐ the salary for a back‐bench M.P. is a measly $195,000 (plus all the usual perks). Abbot is on half a million. How will they ever survive? In my view ‐ and I'm hardly alone in thinking it ‐ Joe Hockey's budget is not so much an economics‐based one but a massive move away from the concept of a civilised society being one which follows the dictum, "From each according to their means; to each according to their needs". It's more like, to those who have shall more be given and blow the also‐rans in the financial rat‐race. It's all too easy to blame the disadvantaged for their own misfortunes. It happens everywhere. "Look at the lazy lot hanging around the malls fagging. Look at those young girls who have had a baby so they can climb on the welfare bandwagon" ‐ this usually from people very comfortably off. I say two things in response. Firstly, there but for fate (or whatever belief you have) go I. And secondly, the number of these people is tiny when compared to those on low incomes who are in education, doing their darndest to get a job, looking after family, or volunteering. In Oz it has just been stated that a sixth of Australians volunteer in some way. Where do they figure in the budget? Meanwhile, horrendous accounts are emerging of the treatment of people here who speak out about the mining industries' intimidating tactics whereby not only are individual landowners being targeted, including farmers in some of the best agricultural areas, but entire towns are being rendered increasingly difficult to live in because of mining pollution Guardian Political Review, Issue 65 - Page 23
often reaching health‐destroying levels. Again it's the haves (in this case the mining billionaires) who can bring vast legal resources to the "negotiating" table while those who oppose them (farmers and their local communities) have to dig into their own limited pockets to do so. So where am I leading with this and what has it to do with New Zealand? Quite simply it is the increasing division I am seeing on both sides of the Tasman ‐ and elsewhere ‐ between the haves and the have‐nots and which appears to be furthered by Bill English's recent budget. Initially it seems that Kiwis may have come out of it a little better than Ozzers but, as with Joe Hockey, when you start digging beneath the surface Mr. English looks to have the same society‐dividing approach. This is well expressed by one of my NZ social issues campaigner contacts who summed it up as,"They have sold themselves to foreign interests and corporate lobbyists, and we are saddled with the results of their legacy ‐ more financial pressure on Kiwis, while they sup with those who have no care for our well‐being and prosperity." DSC's statement on the budget begins by saying that the government are......"undertaking massive borrowing, selling off prime land and important strategic assets, promoting the overseas takeover of New Zealand businesses, inviting exploitation of our natural resources at the cost of our native flora and fauna, and putting out the welcome mat to any wealthy overseas individual willing to bring money into the country". This could be a description of Australia. Comments by another New Zealand political party include; "Cronies get cake, Kiwis get crumbs..... Shameful inequality in New Zealand is clear and deeply troubling...... there have been scores of cuts in crucial public service areas". Again, for New Zealand, read Australia. I've often felt there should be a trans‐Tasman link‐up of groups who campaign on issues like the retention of rural hospitals. I did put out some feelers a while ago on just that subject but the response was underwhelming, understandably I suppose because under‐resourced volunteer campaign groups have got enough on their plates locally without diverting their efforts across the ditch. If it did happen it would almost certainly get some much‐needed media coverage as when Kiwi firefighters help in Oz bushfires and similar things happen in the other direction. When the two governments produce similar society‐dividing agendas as illustrated by the two budgets it would be a good move for social support groups to express trans‐Tasman solidarity. I can dream can't I? As one of my favourite quotes has it (from The Book of Merlyne by T.H. White, being his wonderful version of the King Arthur legend); When all Arthur's dreams have crashed around him he asks Merlyne, "What is the use of trying?". To which Merlyne answers. "It is a thing which people do". Precisely! And so we keep trying. One day Kiwis and Ozzers will wake up and stop electing these hocus‐pocus merchants with their selfish, ego‐tripping, society‐dividing agendas. I hope I'm still around when they do.
MEDIA
Time to take heed of alarming statistics affecting NZ’s economy
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Urgent monetary reform is essential, writes Hessel Van Wieren
hanks to Colin James (ODT, 10.6.14) for pointing out what many commentators globally have been saying for some time: the global finance system not only needs a rethink, it needs reform. Just for the record, Democrats for Social Credit have not faded away. We are still here and still a registered political party. The main problem is that the wider media and population are starstruck by the unquestion‐ ing propaganda of especially this Government and its slick spin machine. The blatant need for monetary reform is no more evident than in the origins of the “global financial crisis” and its subsequent problems. Alarmingly, the contributing factors of a deregulated financial system and liberal bank lending policies are still evident, but the wrong controls are being used, such as quantitative easing propping up the banks overseas, and using the OCR here. The continuing massive property and debt‐ to‐income ratios have been rising over the last 10 years and yet only now do the alarm bells go off. The alarm bells were already ringing in 2008. There seems to be incompetence or just blatant blind adherence to a known flawed ideological monetary theory for a last ditch experiment to try to prove the “Chicago Boys” (refer Joseph Stiglitz’s book) right. Increasing numbers of commentators and economists tell us to “give it” up. An equal number of prominent people are concerned. Colin James mentions the report by Jaromir Benes and Michael Kumhof entitled The Chicago Plan Revisited. The report shows the model used since the 1930s is basically flawed. It proposes the separation of monetary and credit functions of the banking system. As Mr James mentions, central banks would finance government spending, make direct payments to citizens etc. This type of monetary reform the Democrats for Social Credit have advocated for 60 years. Joseph Stiglitz, former World Bank chief economist and a Nobel Prize winner, also is an archcritic of the current economic model. His book The Avoidable Causes and Hidden Cost of Inequality shows how the Chicago Guardian Political Review, Issue 65 - Page 24
School of Economics was given whole countries aided by the IMF on which to experiment. Roger Douglas didn’t dream up his massive revolutionary changes by himself. It was an experiment served up to him by these guys, in the IMF and Chicago School of Economics. Many will argue the success of this but there is ever‐increasing evidence of monetary problems. As Stiglitz puts it, the theory was the wealth would trickle down, but it rapidly found its way to the top of the pyramid.
Alarmingly, the contributing factors of a deregulated financial system and Liberal bank lending policies are still evident. In a recent article in The Economist, Mark Carney, governor, Bank of England, is quoted as saying that “market fundamentalism contributed directly to the financial crisis and the associated erosion of social capitalism”. He went on to say the banks operated in a privileged heads‐I‐win‐tails‐you‐lose “bubble”. His predecessor, Mervyn King, was also highly critical of the banking system and wanted changes.
debt and overpriced land values. China, which is showing signs of slowing, with its internal debt‐driven growth, i.e. total domestic credit, doubling from 2008 to now at $US23 trillion ($NZ26.5 trillion). Many concerning stats such as New Zealand’s position as having the fourth‐ largest household debt to GDP ratio, and that the Government’s overseas debt has tripled since 2008, should also be a source of debate and discussion, but Mr Colombo’s observa‐ tions were basically ridiculed by the media and politicians. Some blinkers need to be removed. Urgent monetary reform is essential and the only New Zealand political party that has the solutions is the DSC. As Colin James also observes, the global financial system is not stable and we are exposed to a variety of pressures. One extra of these is coming in October this year when the European Central Bank is conducting an invasive “stress test” on all European banks to determine whether the European financial system is “bust” or not. Also, from November 4, the ECB will be the Eurozone’s lead regulator, with powers that override individual banks’.
Another interesting development is that Martin Wolf of the UK Financial Times and a We, as voters and citizens, need to be leading economics commentator have informed of all that affects us so we make suggested private banks should be stripped of decisions based on something more than their power to create money. selective media spin. There are other reports that a preparatory • Hessel Van Wieren, of Cromwell, is the work on a study for monetary reform has southern region president of Democrats for been proposed for the Scotland Independ‐ Social Credit ence project. So many others, such as Thomas Piketty in his book on inequality, Capital in the 21st Century, and locally Max Rashbrooke, are prompting a rethink of current ideology.
(Otago Daily Times 'Opinion' 19 June 2014)
Recently, Jesse Colombo (Forbes.com) came out with many alarming statistics about New Zealand’s economy. These were very real and illuminate the other side of our economy that this Government tries to ignore in favour of selective favourable indicators. Of course, the Christchurch rebuild and dairying make us look good but both of these are premised on abnormal and temporary influences. The rebuild and Auckland are based on massive government borrowing from overseas banks with a huge interest burden, and dairying on the back of huge
Hessel Van Wieren
MEDIA
We're off to see the Wizard
The American economy in the last few years of the 19th Century was in a parlous state. Foreclosures on properties, factory closings, high unemployment, and with an election looming in a year or so. The country was in turmoil. Frank Baum, a small‐time journo of that period, caught the imagination of the American public with a children’s story. In that story, Dorothy and her dog Toto were whisked off an impoverished farm to meet a scarecrow, a tin man, and a cowardly lion. The story was an analogy of the times. The scarecrow represented the failing farming community, the tin man the laid‐off factory workers who couldn’t move without oil (money), while the lion was the presidential nominee who failed to win in 1899. All these characters set off along the yellow brick {gold standard) road to find Oz (the weight of gold) and the Wizard, who could perhaps save the situation Along the way they were beset by misfortune, most particularly by wicked witches, including the Wicked Witch of the East (Wall Street). In the original story, Dorothy’s shoes were silver (many reformers wanted to install a silver‐based economy), but the Technicolor of the time the film was made, in 1938, decreed ruby‐red shoes. The ‘Wizard’ was an amalgam of the money manipulators
of the day, who hid behind the scenes, using smoke, mirrors, and loudly proclaimed nonsensical ‘solutions’ to the problems which they themselves had caused. Finally it was Toto who pulled away the concealing curtains to reveal the blustering nincompoop who really was at the root of all the troubles. Does all this sound familiar?
TOTO, Kerikeri
Northland Age 19/12/13. ‘Toto’ is a pseudonym for veteran DSC campaigner Geoff Church
The Diary of Adrian Bayly Nelson-based Adrian Bayly keeps a close eye on the political scene in New Zealand and overseas.
Greetings from the Top o'the South
Wheel of Fortune
10/10/13 Borrow, borrow
The Nelson Mail’s ‘Wheel of Fortune’ shows where the taxpayers’ money is coming from and going to. The Social Security and Welfare cost of $24 billion p.a. is a growing burden, like Health and Education. The personal income tax, GST and Corporate Tax shows that the consumers/workers are paying more, while the wealthy Corporates pay less.
It has been revealed that China and Japan have loaned the US Government over 2.5 trillion dollars. It’s become clear that, although the Republicans in the US House of Representatives want to curb any more debt spending, the President wants to keep spending, raising the debt bar further. Here in NZ, our Finance Minister Bill English is still borrowing $110 million a week. 27/2/14 Watch your back
It never ceases to amaze me how war and politics make strange bedfellows. Former NLP & Alliance President, Trade Unionist, Auckland Mayoral candidate, Maori and Mana Parties’ advisor and , now, Labour Party Chief‐of‐Staff , Matt McCarten, is back to help David Cunliffe’s Labour Party get elected as Government. McCarten has been a critic of David Cunliffe in the past but has changed his mind since Cunliffe was made Leader of the Labour Party.
Our three core DSC policies – Community Credit, Financial Transaction Tax and Guarantee Basic Income – could relieve the debt/interest burden ($100‐$300 million per week). The Government may have a small Budget surplus to boast about after 6 years in office, but there is still $60 billion in National Debt owing to creditors. The Government said its priority is to deduce debt – it looks increasingly likely they will go into the election campaign with a tax relief sweetener. War Chest
The situation is similar to that when McCarten was Alliance Leader, Jim Anderton’s Chief of Staff at Parliament in the 1990s. When Anderton quit the Alliance at the 2002 Election, McCarten and his Party staff were all fired. David Cunliffe could also turn on McCarten if the 2014 election doesn’t go his way.
It’s interesting to see that the Government has raided future surpluses to build a $1.6 billion “war chest” to fight the next election. National and Labour will both get big advertising funding from the Electoral Commission.
17/5/14 Nevern McConachy
NZ voters have a choice on 20th September to stick with the status‐quo (National Party) or give a mandate to a 3rd Party like the DSC. The DSC has policies that will benefit New Zealand, but if National or Labour are returned we will face bankruptcy and find that we are tenants in our own country.
It was sad to hear in the last Guardian.of the passing of Nevern McConachy. I last saw him at the 2004 DSC Annual Conference in Christchurch (50th Anniversary of Party). Although I didn’t know him personally I came to respect his abilities and dedication over many years in promoting Social Credit. He has left a big void to fill. Guardian Political Review, Issue 65 - Page 25
The choice
See you at the Conference.
12 Reasons Why New Zealand's Economic Bubble Will End In Disaster By Jesse Colombo Forbes Magazine 17/4/14 (extract) New Zealand’s economy has been hailed as one of world’s top safe‐haven economies in recent years after it emerged from Global Financial Crisis relatively unscathed. Unfortunately, my research has found that many of today’s so‐called safe‐havens are experiencing economic bubbles that are strikingly similar to those that led to the financial crisis in the first place.
As if the fact that almost half of New Zealand’s mortgages have floating rates isn’t scary enough, mortgages now account for 60 percent of the country’s banks’ loan portfolios, which means that the financial sector is heavily exposed to the eventual popping of the housing bubble.
Here are the reasons why I believe that New Zealand’s economy is heading for a crisis:
Though New Zealand is commonly thought to be an agriculture‐ based economy, this couldn’t be further from the truth. Agriculture accounts for only 5.1 percent of New Zealand’s GDP, while the finance, insurance and business services sector is the country’s largest sector, contributing 28.8 percent to the GDP. Furthermore, banks account for 80 percent of the total assets of New Zealand’s financial system. Not only is New Zealand’s banking system dangerously exposed to the country’s property and credit bubble, but so is the entire economy.
1) Interest rates have been at all‐time lows for almost a half‐ decade Ultra‐low interest rate environments are notorious for fueling credit and housing bubbles, which is how the U.S. housing and credit bubble inflated last decade. New Zealand’s interest rates have been at record lows for nearly five years, which is more than enough time for economic bubbles and related imbalances to form. Like many countries that are experiencing bubbles in recent years, New Zealand’s low interest rates are a by‐product of global “hot money” flows from the United States and Japan, which have both had zero interest rates and quantitative easing programs to boost their economies after the Global Financial Crisis. Low interest rates in the U.S. and Japan encouraged capital to flow into higher yielding investments in countries such as New Zealand, which led to reduced bond yields and an 85 percent increase in the value of the New Zealand dollar against the U.S. dollar since 2009. To combat the export‐harming currency appreciation and bolster the economy during the financial crisis, New Zealand’s central bank reduced its short‐term interest rates to all‐ time lows. 2) Property prices have doubled since 2004 Following the pattern of many nations outside of the hard‐hit U.S., peripheral Europe, and Japan, New Zealand’s housing prices have doubled in the past decade, forming a property bubble: 3) New Zealand has the world’s third most overvalued property market The doubling of New Zealand’s housing prices in the past decade far surpassed household income and rent growth, making the country’s property market the third most overvalued in the world. New Zealand’s home price‐to‐rent ratio is 77 percent above its historic average and its home price‐to‐income ratio is 26 percent above its historic average. 4) New Zealand’s mortgage bubble grew by 165% since 2002 New Zealand’s housing bubble is driven by a mortgage bubble that grew from approximately NZD $70 billion in 2002 to NZD $186 billion in 2013 – a 165 percent increase in a little over a decade. New Zealand’s mortgage debt bubble grew at a faster rate than its economy during this time, causing the country’s total outstanding mortgage debt‐to‐GDP ratio to rise from approximately 57 percent to 85 percent.
7) Finance, not agriculture, is New Zealand’s largest industry
8) New Zealand’s banks are exposed to Australia’s bubble New Zealand’s banking system is dominated by four banks that are Australian‐owned subsidiaries, which means that New Zealand’s banking system is exposed to the inevitable popping of Australia’s credit and property bubble. Australia’s household debt‐to‐income ratio recently rose to 177 percent from approximately 110 percent in the year 2000, while housing prices increased 150 percent in nominal terms and 85 percent in real terms. Australia’s housing market is now the world’s fifth most overvalued housing market. 9) Australian and Chinese buyers are inflating the property bubble An influx of foreign home buyers in recent years has contributed to the inflation of New Zealand’s housing bubble. Australians and Chinese – who both hail from countries that are experiencing bubbles – account for 42 percent of these foreign buyers, which means that the false prosperity booms in Australia and China are spilling over into New Zealand’s housing market. 10) New Zealand has a household debt problem New Zealand has the fourth worst household debt‐to‐GDP ratio among advanced economies, surpassing even the United States. New Zealand’s household debt‐to‐disposable income ratio soared from 100 percent in the early‐2000s to just under 150 percent in recent years thanks in large part to the country’s mortgage bubble. New Zealand’s ultra‐low interest rates have prevented its large household debt from becoming an even greater problem, but this situation can change dramatically when interest rates eventually rise again. 11) Government overseas debt has nearly tripled since 2008 New Zealand’s government took advantage after the Global Financial Crisis to nearly triple its overseas borrowing:
5) Nearly half of mortgages have floating interest rates New Zealand’s ultra‐low interest rate environment has encouraged the country’s home buyers to make many of the same mistakes that the American home buyers did during last decade’s bubble. One of the gravest of these mistakes is using adjustable or floating rate mortgages, which will reset at higher interest rates when the low interest rate environment ultimately ends. Almost half of New Zealand’s outstanding mortgages currently have floating interest rates, which is up significantly in the past decade: 6) Mortgages account for 60% of banks’ loan portfolios Guardian Political Review, Issue 65 - Page 26
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• Over‐leveraged consumers will default on their debts
12) How New Zealand’s Economic Bubble Will Pop New Zealand’s economic bubble will likely pop as a result of rising interest rates across the yield curve, which would put pressure on the country’s property and credit bubbles. New Zealand’s key interest rate is expected to continue rising after its March hike due to rising domestic inflationary pressures, while longer‐term bond yields are likely to rise as a side‐effect of the Fed’s taper and eventual Fed Funds rate increase. Here is what to expect when New Zealand’s economic bubble truly pops: • The property bubble will pop • Banks will experience losses on their mortgage portfolios • The country’s credit boom will turn into a bust
• Stock and bond prices will fall; the New Zealand dollar may weaken • Economic growth will go into reverse • Unemployment will rise Source: http://www.forbes.com/sites/jessecolombo/2014/04/17
Steven Joyce, New Zealand's Economic Development Minister and Acting Finance Minister, criticised the analysis as "alarmist", calling the author a "bubbleologist". He conceded that the Forbes contributor "has a point on household debt", adding "It has started to come back but there's a fair bit of a way to go, and people should be cautious because the world economy is not out of the woods yet". Source: National Business Review 20/4/14
Auckland’s paralysing debt By Auckland Councillor Cameron Brewer (extract from Fuseworks Media 10/9/13) The council’s borrowings will increase from $5.5 billion to $6.7 billion in the current 2013/14 financial year. That’s an increase of $1.2 billion in just 12 months, which is over $3 million a day. At the same time the cost of interest payments is forecast at $367 million, which is just over $1 million a day. These are huge numbers. The 10‐year Long Term Plan forecast debt to reach over $12.3 billion by 2022, it has now been revised up another $598m to $12.9 billion. Annual net interest costs alone are set to increase from $190m to a staggering $752m over the first decade of this amalgamated council ‐ which will then take the equivalent of nearly 25% of annual rates income to fund One thing’s certain: the debt and interest numbers will only get bigger as we move through the decade. In December 2011 the allowable ratio of net debt as a percentage of total council revenue extended from 175% to 275%. Ratepayers are increasingly concerned about soaring debt levels. They’ve read about Detroit’s recent bankruptcy and seen commissioners take charge at Kaipara District Council when debt per capita reached the highest in the land ‐ a tragic first place Auckland will take. Unless Auckland Council urgently puts its borrowing policy under the microscope, paralysing debt will sadly be its lasting legacy for our children and grandchildren. The sky's the limit ‐ $6.7 billion and rising
Source: www.voxy.co.nz/politics/opinion‐soaring‐auckland‐council‐debt
The DSC solution By Stephnie de Ruyter, DSC Leader, Chris Leitch, DSC Deputy Leader & Finance Spokesperson Currently the government goes into debt by borrowing from private banks in order to fund that additional spending. That is because governments only create three percent or less of their nation’s money supply, mostly in the form of notes and coins. The remaining 97 percent is computer‐generated figures, created by private commercial banks. There is nothing wrong with banks creating money within sensible limits. But governments must be able to finance their own operations without going into debt, by issuing just enough themselves to produce a healthy balanced economy without inflation or depression. We would implement major features of the “Chicago Plan” as recommended in the International Monetary Fund paper of August 2012. The Reserve Bank would produce a larger proportion of the economy’s money supply, and the trading banks less. This debt free money would fund infrastructure development, increasing New Zealand’s competitiveness, provide a major boost to employment, and itself reduce inflationary pressures in the economy. The International Monetary Fund paper states:‐ Guardian Political Review, Issue 65 - Page 27
“Allowing the Government to issue money directly at zero interest, rather than borrowing that same money from banks at interest, would lead to a reduction in the interest burden on government finances and to a dramatic reduction of (net) government debt, given that irredeemable government‐issued money represents equity in the common wealth rather than debt.” Christchurch would receive the funding necessary to rebuild its infrastructure without the need to raise rates, sell assets, or delay necessary projects. Projects would be completed faster taking the stress off battle weary residents. Existing commercial bank loans to local bodies (and hospital boards) would be replaced by no interest Reserve Bank loans. Costs to ratepayers would go down, allowing for significant rate reductions as currently 10 percent of rates (approx $500 million) annually goes to pay interest on council debt of $4.9 billion. Improved infrastructure would assist with making business more competitive, bring costs down, improve our environment (sewage treatment, water quality), and provide a big boost to employment. www.democrats.org.nz (extract)
30 years ahead of its time ‐ a proposal from the Socred Guardian July 1983
Social Credit proposes fast rail service for Auckland City Modern rail units like this one in Queensland, Australia, would do much to attract people to utilise the suburban rail service system.
At a time when the Auckland Regional Authority is considering winding down and terminating rail services in Auckland, Social Credit has come forward with a proposal for expanding the service into a "proper city feeder service".
properly integrated rail passenger system. This is the very reason why Auckland regional transport is so inefficient now. Road transport has been over‐emphasised and rail neglected, to the detriment of the region.
The Social Credit spokesman on Transport, Mr Wally Cowl says that a modern, electrified rapid rail system would make Auckland the best serviced metropolitan centre in the world.
"Auckland has to recognise the role of rail passenger transport and be prepared to invest the type of capital that road transport, with its massive motorway networks has enjoyed over the years to develop a fully integrated road and rail passenger system.
The Social Credit proposal involves bringing the rail back into Quay Street, extending a service to the North Shore, and extending the existing rail link out to Howick and Pakuranga. "The existing rail track could be used, but we favour extensions to enable centres of high residential growth to have direct access to the rail service. In some areas, feeder road services could be used to ferry people to the railway stations, such as was already being done in Manurewa," Mr Cowl says. "The Auckland Regional Authority must not be allowed to axe Auckland's rail passenger services. This is the craziest proposal ever to be put before the Authority and those who propose it, have surely got their head in the sand. "No metropolitan transport system can ever be fully efficient without a Guardian Political Review, Issue 65 - Page 28
Social Credit would develop a fully electrified rapid rail system for Auckland, with buses feeding passengers on to rail at various transfer stations and rail bringing passengers right to the bottom of Queen Street in downtown Auckland. The Social Credit proposal involves a circular route service, running trains along the existing track to Westfield, with a loop line off to Howick and Pakuranga. A short section of new curved track would allow the trains to carry on along the main track north, take the Onehunga branch line and join a new track to be laid through Onehunga, Mount Roskill and Blockhouse Bay, before joining the existing track into the
city from Avondale and points west and north. A second stage could involve new track through Point Chevalier and Ponsonby to bring passengers to a new station near bottom of Queen Street. The third Stage would involve the North Shore connection with a service around upper harbour drive joining the existing service at Henderson. A separate feeder line would run up to Milford, with buses from East Coast Bays feeding the service at that point. New modern rail stock such as those used by Queensland Railways would be required to make the service attractive to passengers. "This does require a capital outlay, but the long term benefits would ensure that the city had a service which it could be proud of, and which would serve the people of Auckland for many decades to come, says Mr Cowl. Footnote: This feature, printed in its official publication, illustrates the environmental awareness and forward thinking of the Social Credit Party ‐ attributes which the Democrats for Social Credit Party possess today. (Original Socred Guardian supplied by Lois Flay)
WE HAVE MAIL Congratulations
speculation, capital gains, all based around the real economy’s means of exchange, the dollar.
Of course this isn’t a bad thing as all real Congratulations on the Diamond economy businesses require capital for Anniversary of the Social Credit Party in 1954, expansion and foreign exchange for export. now known as Democrats for Social Credit. Since Rogernomics in the late 1980s, the financial sector has been growing exponen‐ Like all who have long wished to see reform of the financial system, I welcome the tially in relation to the real economy. news presented so well in the Guardian As a percentage of the economy, the Political Review which, a few months ago, financial sector is at the same level it was included the message from Callum Findlater; before the Great Depression of the 1930s. it was appreciated by many. This is a problem, now that the tail is We hope that more young people will wagging the dog. What used to be a service support beneficial change and in the UK are sector to the real economy has grown into a heartened by the example of Positive Money monster. Manipulating our exchange rate, ‐ a team of young people working effectively encouraging every purchase to be made on to this end. credit and concentrating on best return for Barbara Panvel, UK. them, rather than advancing our economy.
Good to read I picked up the Guardian Political Review intending to browse through it and then study it later. In fact the browsing continued and I ended up reading the whole so engrossed was I ‐ blow whatever else had to be done. Tell me, where else could you find such a down to earth publication. How good to read the truth instead of being constantly subjected to the propaganda of the establishment news media spouting esoteric incomprehensible jargon masquerading as superior intellectual knowledge to hide blatant fraud. Colin J Whitmill, U.K.
Social Credit's vision As a long‐time member of the NZDP for SC, who values the insightful articles in the magazine, I have pleasure in sending you copies of historical photos which you may wish to use in the 60th anniversary edition. I’ve also included a 1983 Guardian with its photo and story of Social Credit’s vision for fast‐rail for Auckland City, topical at the moment with the present Mayor’s efforts to achieve a similar purpose – against the Government’s total disinterest. Lois Flay, Warkworth (See Socred 1983 rail plan page and photo of the 1936 Social Credit Annual Conference in this issue.)
The real economy There are two economies. One is where things are made or grown to supply the needs of life, leisure, and export returns. The other is the financial sector, which deals in the trading of money, futures, insurance, shares, and banking. One rides on the back of the other. We all know about the real economy’s resources – minerals, oil, grass, trees, cows and sheep. The resources of the other, the financial sector, are not so well known. Their resources are credit creation, Guardian Political Review, Issue 65 - Page 28
New Zealand isn’t just a paddock in some banker’s international financial farm. Our population isn’t a crop to be harvested by the super wealthy through a treadmill of debt. We elect governments to control these threats and protect us from the usury of the “free” market. Where are you now, government “of the people, by the people, for the people” as Abraham Lincoln demanded of democracy? Carl Findlater, Ryal Bush
Thieves Whilst the government is hell‐bent on mining and drilling for oil off the marvellous Northern beaches, too many criminals are robbing, breaking and entering and snatching purses. All those activities, both by the govern‐ ment and the criminals, have one thing in common: an attempt to obtain money. That's right. While there is no lack of goods, there is a shortage of money with which to buy those goods ‐ so the thieves and the government have more in common than most folk would believe. There used to be a glass factory in Whangarei, with sand from the North being barged south as raw material for that glass. The factory was closed and glass was imported from overseas. And so went the jobs, the expertise and hard‐earned New Zealand funds to pay for that imported glass. Railway workshops have been closed, and with those closures also went the jobs, the know‐how, and the income (spent locally) for those workers. So New Zealand now sources its rolling stock from Hungary and China with little control over the quality of the work from those two countries. In the meantime, roads are crowded with big‐rigs loaded with logs destined mainly for overseas ‐ I suspect to help pay for the tremendous borrowing over which Bill English is presiding. That borrowing is completely unnecessary,
as this country has its own central bank, the Reserve Bank, which could, and should, be put to work to look after New Zealand’s interests by making funding available to government and local body interests where needed. That was a policy which worked well in the 1930’s and could do so today. Geoff Church, Kerikeri
Think first ‐ then vote If it is unacceptable for 10% to own half the nation's wealth, why not vote for a party whose policies are more aligned with a fair and just society rather than the Nats and Labs/Greens whose sponsorship into power is funded by wealthy vested interests seeking to maintain/improve their present status quo? Many have realised that wealth is not trickling down ‐ it is being sucked up by plutocrats that inhabit a world the majority rarely encounter, a world made possible by today's crony‐capitalism (read corrupted) which now closely mirrors the scourge of an earlier period ‐ communism. Across the concerned world, discussion on the long‐held policies of Social Credit have been coming to the fore, such as a Financial Transaction Tax (Robin Hood/Tobin) and a livable universal income. I invite those who have had enough of our sycophantic crony‐capitalist driven parties to research www.democrats,org.nz, then break with tradition. Think first ‐ then vote. John McCaskey, Waipara (Edited extract from letter printed in Christchurch Press)
Corporate vultures Having moved to Queensland from New Zealand 5 years ago I see that the PPP (public/private partnership) funding model that is a key part of NZ politicians' privatisation‐by‐stealth modus operandi is alive and well (or should that be alive and sick?) here. Serco ‐ and a whole horde of corporate vultures ‐ are getting in on similar acts around the world. The ultimate hypocrisy in NZ politics is that the current health minister, Tony Ryall, has announced that he will leave parliament at the elections later this year and is looking forward to going into what he describes as the "dynamic" private sector. No wonder he issued all the district health boards with the instruction to consider PPP funding of their building projects. Should be some lucrative openings for him with the contacts he takes into the private sector! David Tranter, Queensland Letters or emails should be sent to The Guardian Political Review, 26 Warren Street, Oamaru 9400, NZ. Tel/Fax: 03 434 5523. E-mail: editor@guardian.org.nz The editor reserves the right to edit or abridge. The views expressed are not necessarily those of the editor or the NZ Democratic Party for Social Credit.
REVIEWS
The Mighty Totara:
The Life and Times of Norman Kirk by David Grant Review by Random House As Norman Kirk's body lay in state near the steps of Parliament on the day after his death on 31 August 1974, a kaumatua wailed ‘the mighty totara has fallen'. The lament reflected what many New Zealanders felt about this big, commanding and loved leader, dead at just 51. More than 30,000 people filed past Kirk's casket over two days, and again in Christchurch, in a commemora‐ tion that matched only Michael Joseph Savage's for emotional power. Both men died in office, both men were humanitarians. Kirk also worked to move the Labour Party away from its cloth‐cap heritage to embrace a much broader electoral compass, for it to become, in his words, ‘the natural party of New Zealand'. Prime Minister of New Zealand between
Margaret Thatcher ‐ the autobiography Extract from a review by Robert Wilde
Margaret Thatcher was the first female British Prime Minister. She was also the most divisive PM of the century, earning both great reverence but also deep hatred from the divided public Thatcher’s first term in office saw her adopt an economic theory known as Monetarism, while stripping away government regulations on business and subsidies. Many inefficient businesses failed as a result, leading to a rise in unemployment and inflation doubled. At this point the Thatcher government was deeply unpopular. The Falklands War, which
Reviewed by Jenner Lichtwark This is a large, all‐encompassing, well‐meaning book that shows just how deeply the author is concerned by the problems facing the modern world, but in this depth of coverage it becomes somewhat of a curate’s egg for the reader.
Prosperity, Poverty, or Extinction? Humanity’s Choices By Allen Cookson Self‐published through Xlibris 2012. 590 pages. Available from Paper Plus Rangiora, Scorpio Books hristchurch, University Bookshop Christchurch, Not Just Books on Conical Hanmer, Xlibris,co,nz, Amazon.com.
In his own words, Cookson has set out to “gather together in an organized (sic) way the work of respected specialists in their fields”, bringing together economics, food production, energy, climate change, pollution, population, land, and even quality of life in a vast overview of society. Based on his stated assumption that “the earth can support only a limited, though debatable, number of people in a healthy, prosperous state” it leads each section from its inception, through its developmental history to the present day, before coming to his conclusions, which he describes as “possibilities, both good and bad”. This is a book full of worthy ideas and thought‐ provoking questions. It would be ideal as a reader for discussion groups, but it is not, in any way, an easy read. The author is a retired science teacher and this shows very strongly in his writing style. The book is a bipolar mixture of detailed and complex scientific sections followed by chatty pieces in a simple style. This, for me, was where it
Guardian Political Review, Issue 65 - Page 30
November 1972 and August 1974, Kirk's childhood was blighted with poverty, yet he thrived. He moved into a succession of manual trades, before booming into local body politics. His political rise was rapid, from mayor of Kaiapoi at the age of 30 to leader of the Labour Party within a few years. This book examines Kirk's political leadership; his successes, but also his later difficulties when the country's economy was rocked by international oil shocks. He deferred the 1973 Springbok tour and sent warships into the French nuclear testing zone near Mururoa Atoll, his government set up ohu and the established the DPB. He was New Zealand's first truly regionalist Prime Minister, drawing New Zealand closer to Asia and the Pacific, as the ties to ‘mother Britain' slowly loosened. This landmark book takes the full measure of the remarkable New Zealander who was our last working‐class Prime Minister.
Thatcher ran victoriously with great patriotic fervour, boosted the popularity of her government. With the economic situation worsening in 89‐90 Michael Heseltine challenged for leadership. Thatcher was four votes short of outright victory and was pressurised by the party into resigning. In 1992 she left her parliamentary seat and became Baroness of Kesteven. It isn’t an overstatement to say that almost every aspect of life was affected by the policies of the Thatcher government during her years in power, as the economic and social fabric of Britain changed. There are still huge divisions in how people see Thatcher. She was both loved and hated.
disappointed. The book tries to be both academic and aimed at the man in the street. It is a pity he didn’t chose one or the other as it ends up being a book that will be discussed and argued over by those who are already part of the global discussion, but not read by those whom the author really wants to target. An editor’s eye may have made this more accessible to the general reader. Some of his solutions will definitely create discussion, if not disagreement, and many of the sections show the author’s personal political and moral viewpoints, however, it is a courageous effort with a huge amount of material, which makes it a worthwhile addition to any library. About the Author: Allen Cookson is a retired secondary school science teacher with a degree in economics. His interests include conservation and tramping in New Zealand’s mountain country. He is a former member of the Democrats. About the Reviewer: Jenner Lichtwark is the director and editor of Millwheel Press. A former journalist and sub‐editor in both radio and print media, she now writes speculative and mystery fiction. Editor's note: the review of this book by Kirkus Media printed in our last issue was wrongly attributed to Jenner Litchwark.
Whitmill's World Colin J Whitmill reports from the U.K. Referendums don't speak for the silent majority The Private Eye [issue 1359] reported that councillors in Copeland, Cumbria did not want the public to express an opinion as to whether they wanted thousands of tons of radioactive waste buried beneath them. They told the relevant government department that "whilst a referendum provides scope for testing public support, the council view is that it has its weakness.... There is concern that a referendum could be dominated by a vociferous minority and would not ultimately truly reflect the views of the wider community". When John Key rejected the majority wishes in the Assets Sales referendum, he should have explained the reasoning in understandable terms such as this ‐ he acted for the silent majority. The local Cumbrian paper, the Whitehaven News, commented "There's only one thing more frightening in a healthy democracy than a vociferous minority: a silent majority". Why aren't there more women in politics? In a London Sunday Times [16‐2‐14] item, Tory MP Nadine Dorries is said to have explained. "Sixth Form girls tell me they have absolutely no interest in a career in politics and never will, because the men are all ugly".
Are you on Facebook/Twitter? A former Unilever senior vice‐president is reported [Private Eye No. 1360] to have said at a recent conference that most people are "nowhere near” being able to demonstrate just what all this tweeting and Facebooking is actually achieving ‐ if indeed it is achieving anything at all.
People subservient to systems ‐ the banks must be saved. The winter floods in Britain caused chaos, misery and financial ruin to households, farmers and others. A government ruling, to save money, prevented dredging of rivers which may have reduced the misery and damage caused by the storms. The ruling means that some places, homes and businesses, in future will be abandoned to the weather because the government will not release money to defend them. However, the top priority for available funds will be spent on increased flood defences to protect Guardian Political Review, Issue 65 - Page 31
London's big banks. They will be given "an extremely high standard of protection" because they are on the River Thames flood plain. As for people in houses on flood plains approved by the government to be built there, despite local opposition ‐ hard luck! During the floods, PM Cameron said "money is not a problem". When someone asked a visiting government minister three months later when the money was coming to help them restore their broken environment, he replied "money doesn't grow on trees".
Another Cameron promise broken. British Prime Minister Cameron has gained a reputation for giving pledges and promises that never eventuate. From a promise, before elected, to give the people a referendum on Europe (a cast iron guarantee as he called it) to various other promises, most, if not all, have fallen by the wayside, some with tragic consequences. The London Sunday Times [1‐3‐14] reported "A pledge by David Cameron that all cancer patients would receive the advanced radiotherapy treatment they need has been broken, a government report has found". The newspaper reports on two tragic cases where people have died because of a lack of funding to help them. Far from receiving the necessary treatment, they were refused it because the National Health Service England had cut funding for the treatment.
Cancer patients must have jobs and pay taxes to qualify for NHS treatment A London Sunday Times [4‐5‐14] article has revealed that the elderly suffering from cancer are being denied treatment because of the financial cost. Because the elderly, it is said, did not contribute as much to society as younger people, they miss out on treatment. The National Institute for Clinical Excellence NICE which approves the use of drugs said 'If a treatment enables a patient to return to work, they may pay more tax which benefits others in society, or they may be able to benefit the rest of society even if the patients who receive it do not work'.
Two opinions on the neo‐con society The London Sunday Telegraph prints readers' letters. For such a right‐wing pro‐ Thatcher newspaper it was surprising (on 2‐2‐14) that it let slip in the following two anti neo‐con views. "Everything nowadays, including vital utility services, is driven by budgets and profits. The goal of providing necessary services has gone out of the window". "I define a successful society as one in which everybody can have access to good health care and a high standard of free education, and can afford essentials such as housing, food, clothing and heating".
Britons losing trust in green policies In her column in the London Sunday Times [2‐3‐14] Cailla Cavendish comments "To many Britons who are natural conservationists, green policies have come to stand for double standards and monstrous bureaucracy." Residents in Foxearth, Essex, are "fighting a proposal for 300 acres of solar panels on the edge of an area of outstanding natural beauty. These panels do not require an environmental impact assessment (EIA) despite being 8ft high. But residents need an EIA if they want to build so much as a shed" "... to double‐glaze my windows, I need planning permission, listed‐building consent and a builder who is certified under some‐ thing called a fenestration self‐assessment scheme". The writer enquired "could we build environmental policy around the consumer rather than around vested interests?"
The dice are loaded "These days supercomputers trade millions of contracts in milliseconds. The key to success is studying data to come up with algorithms that can predict market movements more accurately and faster than your rivals. As one mathematical master of the market puts it: "it's all about cumulative pattern recognition to predict price evolution" Translation? We use technology to load the dice in our favour". [John Arlidge
The chief executive officer of MacMillan London Sunday Times 23‐2‐14]. Cancer Support said "to deny older patients It’s something from Dr Who treatment based on their age alone is unacceptable discrimination". Sorry, that's the As soon as I have clicked on the NZ Herald way the financial system works. website, an electrical impulse goes down my (continued on next page)
(Continued from previous page) telephone line, is fired via a fibre‐optic line to a cable buried in Cornwall, whipped 7,600 kilometres across the Atlantic Ocean to mid west America, where powerful computers will fight to bring me advertisements I didn't want to see and in which I am not interested. All this takes less than 200 millionths of a second. [taken from an article by Simon Duke London Sunday Times 4‐5‐14]
expected to already hold a masters degree in communications, politics or international relations, to have good English and a "very good command" of reading Arabic ‐ for which impressive skillset they will be paid exactly nothing" While on the subject of no pay, but have a job scenario, it is estimated that there are between 600,000 and a million people employed on zero hours contracts in Britain.
Financial reforms needed to counter climate deterioration "The dispute over whether humans are responsible for raising global temperatures is a dangerous distraction. The fatal damage inflicted on the habitats of all species cannot be contested. The financial reforms that would terminate that abusive behaviour would also discipline the activities that generate toxic gases. But holistic reform depends on people’s willingness to recognise obligations to others as well as to nature. The stakes are high: current rates of income maldistribution and resource depletion are undermining civilisation" (Fred Harrison)
"I know nothing" "While it is easy ‐ if undesirable ‐ for adults to remain quite ignorant of geography or history, there is a heavy price to pay for those who fail to understand the financial facts of life. One reason City scandals follow each other with depressing regularity is that otherwise intelligent and well‐educated people are often perversely proud to declare that they know nothing about money"
Educate for work ‐ starting at 2 years of age A British government education minister has now demanded that children start school at the age of two. Apparently it is claimed that two‐year‐olds do better academically than those who stay at home or use playgroups or nurseries. What can two‐year‐ olds expect of life? Years of study, heavy student debts, a lack of jobs to fit their scholastic achievements, unemployment and paying off student debts, if they can, until they are in their fifties. What a life!
London Sunday Times 27‐4‐14 reviewing a book].
"It is a shared belief among many of us [at the London Global Table] that carbon neutrality is a red herring. If we are serious about protecting the environment and looking after the planet in our trusteeship, the only durable solution is fundamental reform of the economic system and specifically the abolition of interest on newly created money. Anything less is cosmetic and akin to continuing to climb the wrong mountain."
Another Cameron promise ‐ the right of recall of an MP UKIP leader Nigel Farage has challenged [UK Prime Minister] David Cameron to give the voters of Basingstoke the right of recall over shamed MP Maria Miller as promised by the 2010 Coalition Agreement. The right of recall proposed in the agreement committed the government to introducing a new power allowing voters to force a by‐election when an MP was found to have engaged in serious wrongdoing (provided at least 10% of constituents signed a petition). But no such measure has been delivered and now Mr Cameron and [deputy PM] Nick Clegg appear likely only to pursue a watered‐ down measure that will allow a committee of MPs to decide if a case is serious enough to allow voters that right." [taken from www.ukip.org]
Scottish farmers wear slippers The magazine Private Eye [issue 1365] reports that the PE" has long campaigned for an end to the current scandalous system whereby farmers across the UK are paid a total of £3.5 billion [$7 billion] a year whether they produce or not. In Scotland in particular this has led to the emergence of so called 'slipper farmers' who bank the [European State] subsidy and then give up farming their difficult land to spend more time improving their golf handicap".
Hudson]
CCMJ web site revised The Private Eye [1363] comments: "The delegation of the EU to Egypt is currently The Christian Council for Monetary Justice advertising four‐to six‐month internships in its has overhauled its web site and is well worth press and information office. Candidates are a visit. Go to www.ccmj.org/wp Guardian Political Review, Issue 65 - Page 32
"Chief executives,in banks and elsewhere, are paid sums relative to the average worker's wages that their predecessors could only dream of. That reflects their bargaining power and ability to persuade enough people ‐ maybe in some cases wrongly ‐ that their talent is in short supply and has to command premium international rates" [David Smith
Challenging environmentalism
But that's not all. A teachers' union leader claimed that pressures on children include a [London Sunday Times Money section 9‐3‐14] relentless focus on passing examinations. The What if they all came at the same time? result is a' worrying rise in mental health "UK has a total open door to 485 million problems among children" people from Europe, many of them from Privatisation ‐ not about competition, poor countries". UKIP leader Nigel Farage said but wealth accumulation by the few that "the issue that has woken people up, "Now, let’s look at Forbes’ list of the that by being a member of the European richest people in Russia, China, the Ukraine Union we have lost the ability to govern our or the post‐Soviet economies. I can country and to control our borders." guarantee you that they didn’t make this People know what life is like wealth by saving up income, they didn’t earn in the European Union a higher income; they stole the property by "Never mind the disastrous common fraud and internal bribery, the same way that agricultural policy. The experience of opening the great fortunes were made in the United States. up Britain's borders to the new member states of eastern Europe a decade ago has The History of Really Great American Fortunes by Gustavus Myers shows how the taught them that official assurances on immigration cannot be believed. They have railroad land grants made fortunes by bribing also witnessed the eurozone's devastating congressmen and by privatising the land. The crisis with austerity measures and unemploy‐ great fortunes are made by privatising natural resources, land and the public ment levels that have put Britain's in the shade and they know that the politicians now domain, and since 1980, when the urging them to put their trust in Europe, concentration of wealth and income have including the deputy prime minister, were really taken off, this is the age of privatisa‐ once gung‐ho for membership of the euro." tion of Margaret Thatcher, of Ronald Reagan, [editorial London Sunday Times 30‐3‐14] and Boris Yeltsin in Russia." [Professor Michael
No pay, but they will have a job!
It's not talent ‐ it's bargaining ability
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answers they want from mainstream parties."
No relief from debt slavery
[Josh Glancy London Sunday Times 4‐5‐14]
A memory of East Coast Bays
"The financial oligarchy will never cancel the debt we owe." (Professor Michael Hudson,
research professor of economics at the University of Missouri‐Kansas City.)
The rich will buy anywhere ‐ to keep their money "Last week a flat in Knightsbridge, central London, was sold for a reported £140 million" [$280 million] "To the world's super‐rich, prime London property represents just about the safest place to lodge £140 million. After all, at One Hyde Park it is not going to disappear or be confiscated, it will increase in value and, whatever happens in his politically unstable own back yard, the penthouse will keep the money secure until he has another use for it" [Eleanor Mills London Sunday Times 4‐5‐14]
One Hyde Park - for the super-rich
Just a protest vote? Not quite "Clearly UKIP [United Kingdom Independ‐ ence Party] has wide appeal. Some of it is the protest vote ‐ those who hate Westmin‐ ster politics as usual. But for others ‐ whisper it ‐ the party's message is beginning to take root. People who have real concerns about immigration, EU encroachment and where Britain is heading and aren't getting the
In a letter to the editor of the London Sunday Times [4‐5‐14] someone wrote "it is no surprise to me that UKIP is doing so well. I live in rural Devon, and the only election leaflet I ‐ or anyone else I know ‐ have received in my post is from UKIP. The lanes are festooned with the party's banners ‐ there was even one lying on the counter of my hairdresser's the other day. I have neither heard nor read anything about other candidates and had to go onto the internet to find out if there were any." It should be said that ‐ unlike the DSC now or in the past ‐ it does help to have a couple of millionaires making substantial financial donations to aid the cause.
(END)
The Journey continues In August 2004 I revised and updated the brief history of the NZ Democratic Party for Social Credit which I had written in 1995. Ten years on from 2004 I was asked to further update the Party's endeavour to bring justice and fairness to all. Since 2004, there has been a major financial collapse brought about by the greed of the banks leaving millions without hope, unemployed, poor, and living with austerity in a world of plenty. That they have been beaten and robbed as they go through life cannot be honestly questioned. I repeat what I wrote in 2004; "I believe that the NZ Democratic Party has an important part to play in securing social and monetary justice for all. Martin Luther King, in his book Chaos or Community, reminds us that we are called to play the Good Samaritan on life's roadside, but that will only be an initial act. One day the whole Jericho Road must be transformed so that man and women will not be beaten and robbed as they make their journey through life. True compassion is more than flinging a coin to a beggar. It understands that an edifice which produces beggars needs restructuring." Nobody said that the restructuring of our own Jericho Road would be easy, but I am glad to have made the journey along it and met so many wonderful people in doing so. Colin J Whitmill
The Journey begins
N.Z. DOUGLAS SOCIAL CREDIT MOVEMENT 4TH ANNUAL CONFERENCE NEW PLYMOUTH, JANUARY 1936 Photo supplied by Lois Flay Guardian Political Review, Issue 65 - Page 33
NEWS BITES - hunting through the media jungle! INCONTINENT WITH JOY
MYTH AND TRUTH
In 1987 David Lange, flushed with the euphoria of an election night win, made a ‘verbal gaffe’ that led to the MMP system in place today. He said he promised a referendum on proportional representation only because “he misread his speech notes”. Although his deputy, Sir Geoffrey Palmer, was “incontinent with joy” over the promise, Mr Lange said he spent the next two years breaking it.
The myth is that the affordability of universal superannuation depends on whether the government has the money to fund it. The truth is that the government could print the money is it needed to. A nation’s prosperity depends on its output of saleable goods and services. Money is simply a claim on this output. Peter Lyons, economics teacher, St. Peter’s College, Auckland (Otago Daily Times 3/9/13)
1996 newspaper item supplied by Geoff Church. (See feature '1988' in this issue)
(See article 'Superannuation really is affordable' in this issue)
CAN’T AFFORD NOT TO
ACCORDING TO GOEBBLES
All political parties should work together for urgent fiscal and economic change. A guaranteed Universal Basic Income (or Citizen’s Dividend) of all would go a long way to relieving the situation. UBI can be afforded right now with very little change to income tax. We need to stop trying to be money‐obsessed, survival of the fittest financiers. We cannot afford not to implement a UBI soon, because we risk losing our self‐esteems as a nation.
The Law Society is protesting against the legislation to widen significantly the powers of the Government Communications and Security Bureau. One of Mr Key’s most dangerous characteristics is his disregard for constitutional or procedural conventions: he prefers a pragmatic approach which paid off as he made his fortune. Mr Key said those with nothing to hide have nothing to fear (Joseph Goebbles said the same).
Dr Gill Caradoc‐Davies, Otago Daily Times 28/3/14
THE SECRET
CHEQUERED HISTORY The way electorate boundaries are set has had a chequered history and it’s now time to end political interference, says political scientist Alan McRobie. It worked while only two parties, Labour and National, were represented in Parliament. But when Social Credit won parliamentary representation, tensions came to a head when the unofficial commissioners altered the boundaries of the Rangitikei electorate held by Social Credit leader Bruce Beetham to weaken his chances of re‐election.
MONEY ADDICTED MEGALOPOLIS Unhindered by morality or any vestige of planning controls ‐ a thrusting new breed of Indian oligarch has gone on the rampage, transplanting pseudo‐Western • development into a city that remains firmly Third World. The prelude to all this giddying change was the 1991 dismantling of state controls on the economy. Freed from the deadening hand of regulation, Delhi has gone from a strait jacket town of civil servants to a money‐ addicted megalopolis. Its social fabric is feeling the strain. The gulf between rich and poor has grown obscene. With connections and cash, you can do anything: Corruption in Delhi is truly epic; politicians, police, bureaucrats ‐ there's rarely one to be found who's not in some sort of racket. From review of ‘Capital’ NZ Listener 14/6/14
SIMPLY ABOUT CHOICE Now the water fluoridation debate has been reignited, it is timely to point out the debate is not actually about fluoride. It is simply about choice. If your local council decides to fluoridate your municipal water supply, you are getting it, whether you want it or not. Alastair Watt, Otago Daily Times 4/6/14
TO THE FUTURE PRIME MINISTER
Civis, Otago Daily Times 3/8/13
The New York Times, in its obituary of centenarian entertainer George Burns, quotes him saying “The secret of being a performer is honesty. If you can fake that, you’ve got it made.”
RAKING IT IN How much money would you have if you took $800 from every man, woman and child in this country? Roughly $3.54 billion – which is also the record‐breaking profit that the “Big Four” Australian‐owned banks raked in this year.
NZ Listener 18/1/14
Business News, Sunday Star‐Times 10/11/13
The power to create money should only be used in the public interest ‐ to fund vital public services or provide finance to businesses, creating jobs where they're needed instead of being used to push up house prices or speculate on financial markets. A petition to 'the future Prime Minister of the UK' has been organised by www.positivemoney.org From Barbara Panvel (UK) 14/6/14
Government debt has reached $60 billion, having climbed $27 million a day since John Key became prime minister ‐ and forecasts show it will rise for years to come. Despite tax revenue being higher than expected and expenses lower in recent months, Treasury figures show net Crown debt reached the highest yet at $60,015,000,000 at the end of September. It already equates to 28 per cent of New Zealand's economic output, is more than $13,000 for every person in New Zealand and is forecast to climb by another $10b by 2017. When National took control of the Beehive in 2008, debt was just over $10b. Treasury forecasts, which were last updated around May's Budget, show debt increasing every year until at least 2017, which is as far as its forecasts run. Hamish Rutherford, Fairfax Media 9/11/14 (extract) Guardian Political Review, Issue 65 - Page 34
Nisbet, Sunday Star‐Times
DEBT CLIMBS BY $27M A DAY
WAR ROOM
TIME TO RETHINK
Labour has converted its caucus room into a “war room” where advisers and analysts hothouse Labour policy and strategy under the generalship of Cunliffe’s new chief of staff, Matt McCarten. Given the number of slips made recently, this new power engine is not yet connected to the mains.
Financial Times guru Martin Wolf in April approvingly wrote of economists who have dusted off 1930s arguments (by Irving Fisher among others) that private banks should not be allowed to create money, as they do now. Instead, those economists say, central banks would finance government spending, make direct payments to citizens, redeem outstanding debts and make new loans through intermediaries. That sort of idea hasn’t been around here since Social Credit in the 1980s. But it does pose the question of whether it is time to deeply rethink the financial system.
Jane Clifton, NZ Listener 19/4/14
The communications business in the public sector has grown into a monster. Auckland Council employs 143 communications, public relations and marketing staff and has spent nearly $60 million promoting itself in its first two years. Mayor Len Brown has six communications advisers. Canterbury Earthquake Recovery Authority had spent $3.2 million on communications staff and consultants. Southern District Health Board is spending $445,000 on communications this year – two years ago it managed with $159.000. The real purpose of many highly paid communications advisers is not so much to facilitate the flow of information as to manipulate, control and, if necessary, withhold it. And the irony is that the public, by picking up the tab, ends up paying to have the wool pulled over its own eyes. Editorial NZ Listener 14/12/13
A WASTE OF TIME Major Campbell Roberts, director of the Salvation Army’s social policy research and parliamentary affairs unit, said politicians knew the controversial Sky City casino deal was wrong but would not vote against it because of “party politics”, and he said it was the same in respect of alcohol. “Don’t concentrate on the politicians: it’s a waste of time.” Otago Daily Times 2/11/13
CORPORATE EVENT The America’s Cup is portrayed as nation versus nation, but really it is private yacht clubs and private corporations against private corporations. Professor Steve Jackson, University of Otago
BOB'S GLOBAL VIEW In the context of globalisation it’s quite possible independent nations won’t exist by the end of this century and instead a single governing body will preside over perhaps 300 sub‐states. And why not? Sir Bob Jones, Otago Daily Times 18/2/14
Colin James, leading social and political commentator, Otago Daily Times 16/6/14
THE LAST WORD I used to believe that in order for government to provide low‐cost Reserve Bank loans for such public works as building hospitals, new legislation would have to be passed by Parliament. Certainly neither of the ministers concerned (Health Minister Ryall and Finance Minister English) advised me otherwise when I made enquiries under that assumption. Now I find that under the Public Finance Amendment Act 2004, Section 47, "Minister may borrow on behalf of the Crown if in public interest...... The Minister may borrow money from any person, organisation, or government (either within or outside New Zealand)". So why do Tony Ryall, Bill English and, it seems, all current MPs, accept imposing huge, unnecessary costs on New Zealand society by borrowing, on the people's behalf, from mostly overseas‐owned commercial banks when they can choose to do that borrowing from the Reserve Bank at minimal costs? And Mr. Ryall's answer when I queried this? "It's not government policy". My follow‐up questions to both Mr. Ryall and Mr. English remain unanswered. What are they frightened of? Or do they simply not understand the money system? The mis‐information peddled by politicians is further illustrated by such statements as Chris Auchinvole's earlier claim that the money for re‐building Grey Hospital had been "obtained", and more recently other statements that the money has been "set aside". Balderdash. It hasn't been obtained nor set aside ‐ it is merely that the DHB will be "allowed" to borrow it at huge cost to the taxpayers. In the 12/13 financial year New Zealand's DHBs paid well over $100 million in such interest. Given the likely period of paying back the loan (if they ever do) the WCDHB will finish up paying well over twice the loan amount, much to the glee of the foreign money‐ jugglers. No wonder Henry Ford said; "If the people of the nation understood our banking and money system (essentially the same one we have now) I believe there would be a revolution tomorrow morning". David Tranter (DSC Health Spokesman) Letter to Greymouth Star 17.6.14
Democrats for Social Credit I/We wish to join or renew my/our membership of the Democrats for Social Credit, which is an independent political party committed to the economic transformation of New Zealand. You can join online at www.democrats.org.nz or return this coupon with payment to: DEMOCRATS FOR SOCIAL CREDIT, P.O. BOX 5164, INVERCARGILL 9843 I/We enclose $15.00 (per person) to cover annual membership Cheques payable to Democrats for Social Credit
N.B. Membership includes all issues of The Guardian Political Review Please complete the following: Name(s).....................................................................................Tel.....................................Email....................................................... Address................................................................................................................................................................................................ Guardian Political Review, Issue 65 - Page 35
social credit, not public debt
Democrats for Social Credit
new economics a just society a healthy planet www.democrats.org.nzÂ