Progressive Labour Party - Draft Policy

FINANCE POLICY

[1] PREAMBLE:

The immediate and longer term objectives of the PLP are based on the vision set out in the Constitution, Manifesto and Statement of Aims.

The immediate aim is to tackle the worst problems facing the Australin people as a result of the present capitalist society, and turn around the direction of current policy as a prelude to creating a socialist and democratic society.

The PLP rejects the current global economic approach which argues for a reduction in government services and economic influence..

It is an attempt to deny the existence of classes or the rich/poor divide.

The PLP Financial Policy consists of the following five sections:-

• Banking Policy;
• Control of Financial Institutions and Capital Funds;
• Monetary policy;
• Taxation and Fiscal policy;
• Government services.

[2] IMMEDIATE OBJECTIVES

1. Banking policy must be aligned to the aims of achieving human equality and provide for an effective system of bank finance. Banking policy must be subject only to Parliament rather than market forces.
2. Public control over private financial institutions and capital funds shall be used to marshall the wealth created by the working people and apply it for the interests of society.
3. Monetary and Taxation/Fiscal policy shall be used by the government to raise government revenue and to be used as a system of economic control.
4. The tax system will undergo a thorough overhaul to simplify and streamline it along the lines of social equity.

[3] BANKING POLICY:

1. The Reserve Bank shall be in control of monetary policy at the command of the government.
2. The Reserve bank shall reinstitute an effective mode of Stautory Reserve Deposits from the private banks for control of lending.
3. The Reserve Bank will lend money to governments at 1% interest for infrastructure at the discretion of the federal government. All governments will be encouraged to borrow from government banks, -- not private banks anymore - a pattern that began with deregulation in 1984.
4. The Reserve Bank will supervise private banks [and non bank lenders] in order that they follow a government listing of investment priorities.
5. The Reserve Bank will issue or cancel licences for the private banks to operate [including foreign banks] at the discretion of the government. Such licensing will include the provision of banking services to rural Australia.
6. A PLP government shall set up a Development bank on the German lines operating on similar low interest rates. and for similar purposes. This will include the setting up of local enterprise boards to keep interest rates low.
7. A PLP government will set up a Cooperative and Housing bank.

[4] CONTROL OF FINANCE AND CAPITAL FUNDS:

1. DOMESTIC CONTROL MECHANISMS

• A PLP government shall set up a National Enterprise Board similar to the Greater London Enterprise Board of the 1980's. This shall operate through local governments or directly to the community groups on the lines set down to stimulate local community action. This function of the "Enabling State" would apply to e.g. Civiv Action Alliances, Ethical Investment Funds, Community Shared Agricultural Projects, Tenants Groups, Consumer Pressure Groups and local cooperatives.
• A PLP government will investigate new budget accounting to include a GSP (Gross Social Product?, or GPI: Genuine Progress Indicator?) and the division of the budget into consumer spending and capital investment which could be financed by loans from the Reserve Bank.
• The role of the Reserve Bank has been detailed under "Banks"

1. INTERNATIONAL MECHANISMS

• A PLP govt will renegotiate the World Trade Organisation (WTO) for inclusion of human and labour rights and a social charter. we will completely reject the agreement made in WTO on Trade Related Investment Principles (TRIPS) and Trade Related Investment Movements (TRIMS), and their proposed successor the Multilateral Agreement on Investment (MAI), all of which only benefit the multinationals.
• The Government would reject the implementation of the General Agreement on Trade in Services (GATS), which includes global free trade in labour, and not implement any other part of the WTO/GATTS treaties without a referendum.

[5] MONETARY POLICY:

1. Monetary policy shall be controlled by the government via its instruments of the Reserve bank and Treasury.
2. Treasury and the Reserve Bank shall be instructed to make full employment their priority.
3. Government bonds and Treasury notes will be used to control the money flow and as part of fiscal policy.
4. Interest rates shall be strictly controlled at differential rates and not used to control the money supply.
5. Inflation should be kept to a necessary minimum consistent with full employment.
6. Reregulation of the currency exchange rate shall be undertaken upon entering office. The Australian dollar will be a non trading item.

[6] TAXATION AND FISCAL POLICY:

In view of the great importance of Taxation policy the PLP has developed a separate policy statement on this subject. [A summary of the main points may be inserted here later]

[7] GOVERNMENT SERVICES:

1. A PLP government will sell no more government assets. A PLP government will seek to reverse privatisation.
2. A PLP government will buy back or nationalise such capital assets as have been sold.
3. Taxes on public services and assets will be removed. Profit shall not be the aim of the government services but true service to the public.
4. The absurd 'user pays' principle which means in public services that the citizen pays twice - once by taxes and then by charges - will be scrapped.