Former Hamilton Social Credit Candidate Supports New Student Funding Concept

Since the 1980s Governments worldwide have been seeking an innovative new way of funding essential infrastructure and Labour's funding of an element of tertiary education interest free is a pointer toward a new design for such funding.

The wails by Bill English and John Keys about the policy costing the taxpayer 300 million dollars reflects a lack of knowledge about where the debt comes from and who benefits from the interest being paid.

The loans stem directly from the ability of private entities to create the debt which students draw down. The interest paid accrues to those who create the debt so the interest component is on the borrower i.e. the student. If the government is so bereft of common sense as to source the capital in a way that adds cost to the taxpayer, rather than use an interest free facility, then they should be made to suffer for their stupidity.

Also just because the lender is deprived of some of the return on their ‘investment’ doesn’t mean that the taxpayer need in any way be deprived of a hip operation or a kilometre of roading or a refurbished railway seat. The move toward interest free loans is not only an application of Social Credit philosophy but is also Simply Commonsense.

In fact extending the concept to specified essential infrastructure, by the provision of a dedicated interest free overdraft facility through our reserve Bank, would result in the timely and adequate delivery of services and an opportunity for all New Zealanders to share in the benefits of interest free funding streams by way of reduces taxes and charges.

Of course neither National nor any of the other parties likely to form a Government after 17 September have the bottle to buck the orthodox system in that way. Only by giving a party vote to the Democrats will the opportunity happen for real change, beneficial to all New Zealanders.

Trevor A Crosbie

ENDS

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