Head Office: PO Box 36-653, Merivale,Christchurch  Phone: 0064 9 442 2364  Fax: 0064 9 442 2408

Email: nzdp.inc@xtra.co.nz     Website: www.democrats.org.nz

 Submissions to Transit New Zealand

Re: Western Ring Route

 From the Democrats for social credit Party.

 November 2006

 “Essentially, new ideas are required in many areas, particularly in economics … we need very different systems” (Dr. Edward de Bono in his keynote address to the Commonwealth Law Conference, Auckland 1990)

 “The difficulty lies not in new ideas, but escaping from the old ones …” (John Maynard Keynes in The General Theory of Employment Interest and Money.)

 The Democrats for social credit agree that there are benefits to opening the route sooner rather than later.

 We acknowledge that funding the shortfall by borrowing will achieve this.

 We have concerns about the concept of borrowing money from the open market and thus having to pay a substantial amount of interest dollars over and above the principal. This is a project for public good not a project for private profit.

 We recommend that Transit New Zealand make urgent requests to Government to fund the shortfall by utilizing our own Reserve Bank of New Zealand, instead of borrowing from commercial trading banks. The Western Ring Route could be completed without the burden of interest bearing debt. This loan could then be paid for once, not two or three times.  And tomorrow’s motorists would no longer be encumbered by servicing yesterday’s debts.

 The huge savings made by obtaining an interest free loan from the Reserve Bank will also relieve the need to repay the loans by collecting tolls. The burden of costs could thus be further lowered by eliminating the need for the toll collecting infrastructure.

 The flow of funds currently collected by Transit along with the significant funding already allocated by government could be far better utilized with the loan interest factor removed.

 Escape the bondage of old ideas and bring forward the opening of the Western Ring Route without tolling.

  Contact:         John Pemberton, Democrats for social credit Finance Spokesman,

                        Ph. 021 716 895, E-mail pemberj@slingshot.co.nz,