Salient. Victoria University of Wellington Students' Newspaper. Volume 31, Number 17. July 23, 1968
'Obsolete' — -says Cracknell
"Old-fashioned . . . inadequate . . obsolete . . in fact, downright dishonest," said Mr V. F. Cracknell, leader of the Social Credit Political League and its sole MP, of New Zealand's present financial structure.
'This policy will simply not work in this changing world. We cannot continue this two dimensional taxing and borrowing—borrowing and taxing."
"If 80 per cent of money is created by the stroke of a pen in the banking system." he said "Why can't we do the same thing with the use of Reserve Bank credit?"
Inflation in this country at present was one of costs, not a case of "too much money chasing too few goods."
As long as a balance was maintained between production and purchasing power, such conditions as at present woud not exist.
The amount of credit issued would depend on the amount of goods and services available.
'As long as we go on ignoring this third dimension we will continue to pile up debt, the government will conlinue to borrow with the resultant higher taxation."
This acceleration of the debt cycle was the fundamental issue of today.
For the worker this cycle meant "the obtaining of a rise but with extra money in his pay packet being needed to pay for increased costs in goods and services."
"I cannot see that the worker can win through the Court of Arbitration under our present financial system."
"Irrespective of what the Arbitration Court decides it is essential that we solve arguments through constitutional means."
"If the Industrial Conciliation and Arbitration Act needed amending Parliament must get on with the job. But we must not bring changes in the priority of criteria for a reversal of the original decision.'
"I think that if we are not very careful we may undermine the function and effectiveness of the Arbitration Court."
The basic problem, he said, was "the struggle with an out of date, inadequate, economic system."