The Barbara Panvel column

FREE MONEY! IT'S TRUE…

18-07-2006

How often have we heard politicians say when faced with demands for improved public services - "there's no more money!"

Believe me, they arebluffing.

There's noneed to borrow from the banks, incurring high interest rates and repayment obligations;no need to raid the Chancellor's war chest currently being diverted to support US policies.

There's no need either to fund improvements in schools, hospitals, transport, police and social services with expensive PFIs; and we don't have togo raising taxes.

There's a simple measure which has served ths country well in the past but which MP's and economists are only now starting to re-examine.

These brave souls point out thatthat only3% of the total money supply is currentlyissued interest-free by government.

There's no reason why it shouldn't beincreased to, for example, 20%- that's how much was issued in1964 .

SomeMP's have signed one or more of Austin Mitchell's early day motions proposing this step - most have just ignored it.

Described as ‘public' money', in the form of cash or electronic transfers, this 20% of the money supply would be used only to improve public services.

This would directly create employment opportunities, urgently needed in many areas of the Midlands and the Nortth.

Indirectly, it wouldincrease the demand for equipment which should be locally or nationally sourced.

Little or no publicity has been given to these proposals for the public good . . . I wonder why?