Debt in the long ruri

Ruapehu Bulletin, Volume 7, Issue 341, 26 June 1990, Page 6

Debt in the long ruri

So telecom has been sold to U.S. buyers for $4.25 billion. This money, say R. Prebble, D. Caygill, R.

Douglas and others of that ilk, will reduce our national debt. They claim that therefore we taxpayers will pay less interest on the national debt. I guess that is supposed to mean that our taxes in future will be lower. It's wonderful to imagine that American businessmen are being so nice as to help us out of the pain and bother that national debt imposes. But businessmen require a return on investment. Let's say that they must gain a dividend of 11 or 12 per cent a year. That would amount to about $0.5 billion which will have to be paid out of our overseas funds earned by exports produced by you know who. I'm a septuagenarian and perhaps age accounts for my being puzzled. It appears that similar amounts of money will be exported each year so not only the national debt but also the balance of overseas funds will be lower. I pay taxes and telephone bills. What I used to pay in taxes to serve my part of the

national debt I will now pay to Telecom's new owners. But, I'm told, Treasury will be better off and I'll pay less tax. Well I've checked and calculated, and each year I've paid a greater percentage on my two pensions in direct taxation than I paid before 1984, despite the supposed reduction in the national debt through S.O.E. saies. And I've paid G.S.T. on top of that. It seems to me that there was . at least a chance that national debt loans Could be paid off by some means of careful, true economy, but the dividends for Telecom will go on for ever so our national income will always be less. Perhaps a younger and brighter person could explain and unburden me of my mental muddle. Of course possibly the national debt will be cancelled in the long run, but, as one wise man said, "in the long run we'll all be dead."

F.E.

Woods