Media Release
Thursday 28 May 2009

Private debt still used for public expenditure

“Public expenditure may be restricted in the future, but it is still to be financed by private debt” observed DSC Local Government Spokesman, Heather Marion Smith of Wanganui, commenting on National’s 2009 budget.

Miss Smith noted that slowing down debt growth is not a cure, nor is any hidden agenda to load more responsibilities onto local government so as to shift the burden.

“At least Finance Minister Bill English is raising our awareness of the dangers to future generations of debt growth” she said.

“The DSC maintains that public expenditure on infrastructure should be publicly financed through our sovereign bank, the Reserve Bank of NZ, at little or no interest. That would deliver the stimulus the economy so badly needs, without the crippling burden of compounding debt” Miss Smith concluded.

ENDS

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