Territory Stories

Debates Day 2 - Wednesday 1 May 1991



Debates Day 2 - Wednesday 1 May 1991

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Parliamentary Record 3


Debates for 6th Assembly 1990 - 1994; ParliamentNT; Parliamentary Record; 6th Assembly 1990 - 1994




Made available by the Legislative Assembly of the Northern Territory





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Legislative Assembly of the Northern Territory

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Attribution International 4.0 (CC BY 4.0)

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Legislative Assembly of the Northern Territory



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DEBATES - Wednesday 1 May 1991 to banks had been made, a mere 300 remained. It seemed like an impossible situation. Fortunately, there were no bankers or economists on the island. It was so poor that it was not worth establishing a bank there. They did have a group of people who were very concerned about the situation and those people devised a plan and put it into action. They printed 6000 guernsey pounds. At a CPA conference in Sri Lanka in 1981, which I had the good fortune to attend, I met a lady from Guernsey. She was a member of the Guernsey parliament, which has semi-autonomous status in relation to Great Britain. She gave me a Guernsey pound in the form of a coin, which I treasure. It ties in with this story. They printed the 6000 Guernsey pounds. They paid island people to build a marketplace where people could have stalls. They paid for the materials and the work was done. They then hired out the various stalls. People took them over and no doubt took out leases. In 10 years, the government of Guernsey received back the 6000 pounds. It destroyed that money, which was simply like tickets. The same method was used to repair the sea wall and to build the roads. Today, Guernsey has one of the lowest levels of taxation. The same principle applied with the tally sticks in Britain. The people of Guernsey created the money, spent it into circulation at zero interest over a period of 10 years and, having produced a productive asset on which they could charge rental, were able to get the money back. They then took it out of circulation. They still had a productive asset in place which could continue to attract rental to be paid into the public office. The same sort of thing happened with the tally system, which utilised lumps of wood which must have been very difficult to manage. However, it worked. It was debt-free money and it was spent into circulation. The stories that I have been telling about money have come from a book called 'The Truth in Money'. It is about the American system, but our system is not very different. The authors are Thoren and Warner. Its ISBN number is 0-9606938-4-x. That should be sufficient identifying information for anyone who wants to obtain a copy. I have placed a copy in the Parliamentary Library and I am happy to make copies available to other people. The book is very readable. It has very big print. It explains the problems of our current monetary system and outlines a system which the authors believe should replace it. The Treasurer says that we have to borrow. Under our current system, he is dead right. We have no choice and we are at the mercy of the people who can turn credit on and off. Even if they do not turn it on and off for the government, they turn it on and off for the taxpayers - the people of the Territory and the people of Australia. They are quite capable of turning it off and bringing on a depression, which must affect the government. The government would be affected because, with taxpayers going broke and profits right down the gurgler, not only here in the Territory but right across Australia, it could not collect money to pay its debts. Our income from the federal government could be cut dramatically. That could have a severe effect on the 8.1% of the Treasury budget which the Treasurer says is allocated for debt repayment. The Leader of the Opposition says that the Treasurer's figures are out of date, but I have been reasonably reassured by the Treasurer that the figures in the Treasury booklet are sound. When the Leader of the Opposition and the Treasurer make competing claims, it sometimes becomes rather hard to follow the debate. 857

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