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Press Releases

Government Pays Out Counterfeiters
Media Release 5th August
The government has put paying out counterfeiters ahead of children’s education and health care on its list of priorities.
With a nurses strike already having disrupted hospitals and a teachers strike looming those priorities urgently need to change.
According to Mervyn King, former governor of the Bank of England, “When banks extend loans to customers, they create money by crediting their customer’s accounts”.
This is backed up by former governor of the Bank of Canada, Graham Towers - “Each and every time a bank makes a loan, new bank credit is created – brand new money”.
And by local commentator Bernard Hickey – “at the moment, it is private banks that print money. They invent money out of nothing whenever they lend”.
So if banks are creating new money out of thin air, just like counterfeiters do, then why is the government paying four thousand five hundred million dollars every year in interest on counterfeit loans, then claiming there’s no money for teachers and nurses?
An International Monetary Fund report recommends the government should source those loans from the Reserve Bank, which it owns, at no interest.
If the Prime Minister really wants “to foster a kinder, more caring  society” it’s time to put her money (or rather taxpayer’s money) where her mouth is.
That means putting a decent education for our children and world class health care for the elderly, the sick and the injured, ahead of massive profits for overseas owned counterfeiting banks.
Teachers, doctors, police, nurses, IRD staff and other public servants need  better pay, more staff and support, and better facilities if they’re  going to be able to play their part in creating that “caring society”.
The National Party created the uncaring society we have today.
The Labour, NZ First, Greens coalition has the chance to prove their economic policy is not the same as National’s and to use that $4.5  billion in wasted interest to turn that uncaring society around.
Chris Leitch, Leader


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Easy Fix for Avalanche of Wage Claims
Media Release 22nd July
The government could head off the avalanche of wage claims that is coming  at them like a runaway freight train by scrapping GST and replacing it with a financial transactions tax.
The wage claims, from nurses, teachers, police, IRD and MBIE staff, and  others, have the potential to wreck the economy by kick starting inflation and pushing up interest rates.
Private sector employers will likewise be under pressure to raise wages, increasing their costs substantially.
The cumulative effect will be to drive up interest rates, causing a major correction in house prices and hundreds of mortgage defaults.
Replacing GST with a financial transactions tax at less than a quarter of one percent (25 cents in every hundred dollars) on all withdrawals from bank accounts would give workers across the board a substantial increase in purchasing power greater than they would get from wage rises.
It would generate roughly the same in tax revenue as GST, but with a substantial amount coming from the speculative sector of the economy.
That raft of financial transactions such as credit default swaps, debt securities, convertible and exchangeable bonds, currency trading, derivatives etc, currently avoid the GST net.
The recent introduction of GST to on-line purchases is complicated and messy and will produce minimal tax revenue, whereas transactions tax is simple and would immediately put Kiwi retailers on an even footing with all overseas sellers.
Additionally businesses would be relieved of the burden of accounting for GST, filing returns, and audits.
It will be very simple for the banking system to implement FTT, and very difficult for anyone to avoid payment.
Banks would deduct the tax automatically in the same way they already withdraw their own account fees and Resident Withholding Tax, and remit it straight to the IRD.
The removal of GST would contribute to a reduction in child poverty by putting more money in the hands of lower paid New Zealanders who currently pay tax far out of proportion to their incomes.
It would be fitting that Labour, the party that first introduced GST and unleashed the neo-liberal economic experiment on the country were the ones that finally scrapped it
Chris Leitch, Leader
Note: More than forty other countries already have some form of transactions tax.

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Government Would Find Money If War Was Declared
Media Release 11th July
If America declared war on Russia, North Korea, or Iran and called on New Zealand to assist, Acting Prime Minister Winston Peters’ government would immediately find the money necessary to provide the resources our armed forces required.
Mr Peters’ claim that there is no money to increase the offer to nurses is patently untrue.
If we were at war, there would be no limit to the money made available to kill people.
And he can find $12 million dollars every single day to pay interest to the private banks the government has borrowed from.
How is it he can't find the funds to ensure doctors and nurses save lives!
Obviously we have the resources, so why is an accounting system stopping them being used?
He could solve the nurses strike overnight by borrowing from the Reserve Bank, just like the Japanese government is doing.
The Reserve Bank can create the credit for the loans in the same way the Australian owned private banks do.
As economic commentator Bernard Hickey says “that's the dirty little secret of international finance”.
Putting bombs and bankers ahead of doctors and nurses shows that the economic policies of Labour and NZ First are no better from National’s.
Chris Leitch, Leader
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Yet Another Party Dashes Kiwi’s Hopes
Media Release 9th July
The demise of the Opportunities Party is another example of a rich  entrepreneur having “a go” at politics without any real commitment to a philosophy or core policy.
Gareth Morgan joins a long list of similar people who thought money was going to buy them an easy road into parliament and who gave up when the going  got tough.
Bob Jones and Colin Craig were others.
They were, as his party name suggested, “opportunists”, who promised much and didn’t deliver.
There was no solid foundation that people could commit to, that would make them contribute time and money at great personal cost over many years.
While Social Credit hasn’t had rich donors and corporate backing that would have allowed it to buy media time and tour the country like Mr Morgan, it has survived the test of time.
It has done so because of its commitment to reforming the money system to deliver a better life for people – particularly middle and low income earners – rather than bankers, money manipulators, and corporates.
First formed in 1953 it has proved it has stickability and commitment to principle and that’s a rare quality in New Zealand politics.
In doing so it has proved Bob Jones wrong.
His taunts about “Skodas and crimplene suits” have come back to haunt him.
Skodas are now a luxury vehicle, and monetary reform is gaining support internationally from economists, professors and commentators.
Its time is coming.
Chris Leitch, Leader
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There Is More Money For Nurses
Media Release 24th June
Finance Minister Grant Robertson’s claim that any new pay offer to nurses “would have to be made using funds already allocated, as there's no more” is nonsense, according to new Social Credit Party Leader, Chris Leitch.
Mr Robertson’s understanding of how the money system works is patently paper thin, and he’s relying on what advisers in Treasury, who have been sourced from the private banking industry, are telling him.
Just like his predecessor Bill English, he puts paying $4,500,000,000 dollars every year unnecessarily to the private banks the government has borrowed from, ahead of decent pay for doctors and nurses and decent health care for Kiwis.
He could solve the nurses strike overnight if he understood anything about Labour Party history, and took a leaf out of Michael Joseph Savage’s book.
Labour’s first Prime Minister used the Reserve Bank to create the credit necessary to rebuild the nation.
5,000 houses were built by 1939, and 30,000 by 1949, financed by Reserve Bank credit.
The European Central Bank is creating credit at the rate of $35 billion Euros per month, through its quantitative easing programme, without any sign of inflation, so there’s no reason the Reserve Bank here couldn’t fund our government in a similar way.
That would give him $4.5 billion dollars every year to spend on New Zealanders instead.
Putting bankers ahead of doctors and nurses shows that Labour’s economic policies are no different from National’s.
Chris Leitch, Leader
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Petrol Taxes A Needless Roundabout
Media Release 1st July
The combination of petrol tax increases and a higher families package is a needless roundabout that will be self cancelling for some households and unnecessarily expensive for many others.
The petrol taxes will have a double whammy effect by also raising the price of food and most other goods as freight companies and shops seek to recover their additional costs.
This will hit low income supporters of the Greens and Labour hardest despite the boost in the families package, and will stoke inflationary pressures.
CEO’s, those in management, property speculation, money market manipulation, and earners of higher incomes, will barely notice a ripple.
Labour should have looked to the lessons of the real Labour Party of 1935, who didn’t impose more taxes, but instead used the country’s Reserve Bank, at virtually no cost, to provide funding for housing and infrastructure projects. (see 1949 Ministry of Works report “State Housing In NZ”)
It could also have taken the $4.5 billion dollars in interest annually - $12 million per day, seven days per week - it pays to banks and financial institutions that create the money it borrows out of thin air, and channelled that into improving the country’s transport networks.
Introducing his Reserve Bank Amendment bill to Parliament in 1936, Labour Finance Minister, Walter Nash said “it is proposed to save a good deal of money in connection with the underwriting of Government loans. It is our work to see that the necessary stimulus of credit is given to the labour and the materials to enable the asset to be produced, and the asset, when produced, is the security given against the loan made by the Reserve Bank to the Government.
That approach was analysed by an International Monetary Fund report in 2012.
The Chicago Plan Revisited said this – “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…..”
Labour should have looked to its history instead of taxing its most loyal supporters.
Chris Leitch, Leader

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