Direct govt funding of earthquake repairs urged
“The extent of the earthquake damage to Canterbury’s essential infrastructure demands a creative funding response from the Government” said Stephnie de Ruyter, Leader of the Democrats for Social Credit Party (DSC).
“Estimates of a $2 billion repair bill to repair water and sewage lines, roads and footpaths, in Christchurch alone are likely to be conservative but even if they prove accurate, that’s a big bill for ratepayers and/or taxpayers to meet.
“Christchurch City Council debt already exceeds $200 million so it must be a relief to ratepayers that the government is willing to step in to pay for the necessary repairs.
“The Government already borrows $250 million each week and taxpayers will be reluctant to support any increase in government debt.
“Fortunately there is a common sense, low inflation alternative available to the Government: pay for repairs with money issued from our publicly-owned bank, the Reserve Bank, interest free instead of borrowing at interest from overseas lenders.
“The urgent need to undertake repairs to essential services throughout Canterbury without increasing an already heavy nationwide debt burden offers the best possible reason for direct government funding of infrastructure using the facilities provided by the Reserve Bank of New Zealand. It is an opportunity to use credit as a public utility, instead of relying on interest-bearing bank-issued credit.
“The Government must exercise its prerogative to spend or lend low cost money directly into circulation to meet the cost of building, repairing and maintaining public infrastructure, in the public interest. And more specifically, in the Canterbury public’s interest” Ms de Ruyter concluded.
Published: September 2010