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Transtasman Political Letter – 17 November Digest

Transtasman Political Letter – 17 November Digest

Transtasman is a subscriber newsletter published weekly and read widely in New Zealand and abroad. The following is a summary of this week's edition. To subscribe and read the full newsletter see.. http://Transtasman.co.nz

17th November 2005

Treasury says tax cuts across the board are best for growth, leaving Michael Cullen as blue in the face as the Treasury briefing paper
… Is it a smile we see spreading across John Key’s face?
... Trade issues loom large as the Doha round slips closer to foundering
… Winston starts to find his Foreign Affairs feet at APEC
… but Jeanette Fitzsimons finds voice to berate Labour.

Treasury Drops A Political Blockbuster

The new Govt has been rocked on its heels by Treasury briefing papers calling for tax cuts. The Treasury “believes reducing rates directly will have the most substantial growth impact.” In papers rated as political dynamite, Treasury in effect backs the Opposition’s stance on tax cuts, against the Govt view tax cuts would undermine fiscal stability.

Tax Cuts To Promote Economic Growth

The main policy challenge facing the Govt is to enhance productivity, Treasury’s briefing paper (which some authorities rate as important as the 1984 document to the then incoming Labour Govt.

Fitzsimons Sees Govt As Hostage To Intolerance

The wounds inflicted on the Greens by their erstwhile ally the Labour Party during the formation of the Govt have still to heal, judging by the sharp attack the normally mild-mannered Jeanette Fitzsimons made on the Govt in the House this week.

MED Warns Of Tough Times For Business

The Ministry of Economic Development in its briefing to the incoming Govt warns it is tough for exporters at the moment, it is going to get tougher for other businesses in the next year or two, and there are significant challenges in the medium term.

CAPITAL TALK

PM Helen Clark’s chances of helping the NZ Rugby Union win hosting rights for the 2011 World Cup may have been frustrated by the Aussies. Her Qantas flight out of Auckland had to turn back four hours out on Tuesday night because of a mechanical fault.

Play of the week: Pardies!

Back when Labour was elected in 1999 Michael Cullen observed at his first press conference that officials prepared two briefing papers for an incoming Govt: “a red one and a blue one.”

Transtasman is a subscriber newsletter published weekly and read widely in New Zealand and abroad. The above is a summary of this week's edition. To subscribe and read the full newsletter see.. http://Transtasman.co.nz

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