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


Labour knew Transpower deal was to be outlawed

Labour knew Transpower deal was to be outlawed

National Party Finance spokesman John Key says Michael Cullen must try harder to explain why he gave his backing to Transpower’s involvement in a tax deal he knew was about to be outlawed in the US.

Mr Key is commenting on reports today which say ‘that while the move by the IRS to ban silos was known to New Zealand officials, Transpower went ahead with completing its cross-border lease regardless’.

“New Zealanders deserve to know why Michael Cullen gave his blessing to an SOE to go ahead with a tax deal that was about to be made illegal?

“Armed with this information, did he raise these concerns with the US Embassy?”

“I’m absolutely certain Dr Cullen would have condemned the practice if investors in New Zealand were dodging tax in the same way,” Mr Key says.

According to today’s reports another State-Owned Enterprise, the Airways Corporation, was halfway through such a deal when it circulated an email saying, ‘yesterday a US senator and a tax committee decided they wanted to change the tax law that allowed cross-border leases. There has been some bad publicity over there recently about local/state governments using these leases to erode the US federal tax base.’

“In other words, Dr Cullen must have known that US investors were using the Transpower deal to avoid paying tax.

“There has recently been a remarkable silence from the Finance Minister’s office on difficult issues, such as tax in dispute and cross-border leases,” says Mr Key.

“Is this really the sort of leadership we can expect under Labour?”


© 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?) the 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>>




Submissions Summary: The People's Commission On Public Media

This Summary is a preliminary report from the People’s Commission. It brings together views and aspirations of the hundreds of people who made submissions, attended public meetings, filled out the online survey and made speeches to our Panel. More>>

Housing Plans: Protest Over Ihumatao Development

Ihumatao in Mangere, next to the airport in Auckland, holds the archaeological remains of 1000 years of food production; from when Maori first landed in the area, through to early European settler agriculture and right up until today. More>>


Negotiations: What Does Winston Peters Want His Legacy To Be?

A lot of people in New Zealand seem to resent Winston Peters and the power that he appears to have. “Appears” being the operative word.. More>>


Contains Highly Colloquial Language: Your F**king Guide To Government Formation

The following message is in no way endorsed by the Electoral Commission. They are f**king done with this election. More>>

NZ Emissions Up 50% 1990-2013: Report Confirms CLimate Change Impacting 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>>


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>>


Rorschach Restructuring: Inland Revenue Steps Back From 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>>





Featured InfoPages

Opening the Election