Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Hide attacks Cullen for hiding huge surplus

Hide attacks Cullen for hiding huge surplus

Wednesday 16 Mar 2005

Rodney Hide - Press Releases - Taxation

ACT Leader Rodney Hide stepped up his attack on Dr Cullen for trying to hide Labour's unprecedented operating surpluses in an attempt to silence mounting calls for tax cuts.

In Parliament today Mr Hide questioned the Finance Minister on the advantages of accrual accounting over cash accounting. He also accused Dr Cullen of cooking the books to bury the surplus, comparing the change in presentation of the Crown accounts to what the previous Labour Government did to hide its shameful deficit in the 1990 Budget. In his response, Dr Cullen pointed to the only difference being that one was a surplus and one was a deficit.

After question time, Mr Hide said Dr Cullen is repeating former Finance Minister David Caygill's 1990 accounting declaration that forestry asset sale income was revenue. Back then Labour was cash accounting to hide the deficit. Now it's to hide the true extent of the surplus.

"If the Crown tomorrow sold all its electricity generating companies, solid energy, and TVNZ, the resulting cash surplus would be close to $10 billion. Reporting such a cash balance would not present a fair view of the health of the Government's accounts for that year, but it's this method of cash accounting that the Government is now promoting.

"It's outrageous that Dr Cullen is reverting to shoe-box accounting, deducting from the operating surplus all the capital items and advancing all the student loans and super fund contributions."

Last month Dr Cullen said `After a five year struggle I am about to give up as lost the effort to educate the media on one of the basic questions of third-form accounting: What is cash?'

"This is no education in accounting. This is a political exercise designed to plead government poverty and say there's no money for tax cuts. We will not be fooled by this sham nor will others.

Describing it as `pulling the wool over our eyes', BNZ chief economist Tony Alexander has been scathing of the Government's attempt to hide its over flowing coffers: `Treasury are probably engaging in the biggest smoke and mirrors exercise we have seen from them since 1990, he said in his weekly report last year.

"ACT will fight this sham all the way to the May 19 Budget. Whatever the smoke and mirrors, the reality is we have a huge surplus that belongs to hardworking New Zealanders not Dr Cullen. It's time Labour boosted working Kiwi's incomes and not deny them through deception," said Mr Hide.

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Peters/Ardern Triumph

There are a lot of good reasons to feel joyful about this outcome. It is what so many young voters – the best hope for the country’s future – wanted.

Far more important than the implications for the Economy Gods ( is the dollar up or down? ) last night’s outcome will also mean many, many vulnerable New Zealanders will have a better life over the next three years at least.

Yet the desire for change was in the majority, across the country..>>>More


Reaction

Labour on its agreement |Peters: Post-Election Announcement Speech | Greenpeace “cautiously hopeful” about new Government | ACT - Madman on the loose | E tū ecstatic | Chamber welcomes the outcome | Greens on their joining Govt | EDS welcomes new govt | Immigrant groups worry | Feds ready to engage new coalition government | Labour Ministers of the Crown announced

 

Climate: Increasing Greenhouse Emissions Hit NZ

New Zealand is seeing impacts of excess greenhouse gas emissions in our climate and oceans, according to the latest national report from the Ministry for the Environment and Stats NZ about the state of the atmosphere and climate…More>>

ALSO:


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>

ALSO:

Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>

ALSO:

Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>

ALSO:

Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>

ALSO:

Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>

ALSO:

Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election