Jenny Shipley Leader of the Opposition

28 March 2001

Spin can't disguise Cullen backdown

Opposition Leader Jenny Shipley has tonight welcomed the Minister of Finance's abandonment of his proposal to impose a capital gains tax on Taranaki and West Coast leasehold farmers.

"This is a massive backdown from where he was two days ago. Tonight he has had to admit that the law as passed by the National Government was correct, and will now stand, as is.

"In his statement he admits that the market value approach to compensation does incorporate the impact of tax on cashflows. At a meeting today with the Minister's officials I made it clear that this understanding was reached between the leaseholders and the Government at the time I was Prime Minister.

"Cullen's shameless attempt at a tax grab for fiscal reasons has been exposed for what it was," Jenny Shipley said.

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