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


Petrol musings the latest flip flop

10 September 2005

Petrol musings the latest flip flop

National’s musings on petrol tax reductions beggar belief given it is only a few days since the party ruled out the possibility, says Finance Minister Michael Cullen.

“Don Brash needs to come clean and tell New Zealand if National is about to execute another flip flop,” Dr Cullen said.

“Don Brash’s shadow budget has already allocated all the revenue from excise on petrol into land transport. If Don Brash is to cut this revenue, he will have to cut back National’s roading promises. He should tell New Zealanders, and particularly Aucklanders, what road projects he would put on hold. Will his promise to complete the Western Ring Route be gone by lunchtime today?

“Either way, the National Party’s latest musings are little more than appallingly bad policy making on an ill-shodden hoof. If international oil prices were to rise even higher, would National forgo even more revenue?

“Don Brash claims to be financially literate. If he is, he would know that government revenue does not rise when petrol prices rise; if anything it’s the opposite. He should also know that New Zealand has one of the lowest petrol pump prices in then developed world, and one of the lowest proportion of tax to the overall price.

“This is grossly irresponsible. It suggests a certain panic in National’s ranks after the last week when Don Brash’s self-styled image as an honest, trustworthy person was left in tatters. These latests musings certainly reinforces the growing perception of National’s duplicititious lack of honesty,” Dr Cullen said.

National’s musings:

New Zealand Herald, Sep 2 2005

National finance spokesman John Key said it was unlikely National would cut excise off petrol.

"The moves that are taking place are dwarfing any of these minor changes that have occurred around the 5c increase in petrol tax and the like. Secondly, we have committed that revenue to building roads."

He denied petrol prices hitting the economy - and therefore the tax take - would impact on National's tax cut as it had been budgeted "conservatively".

"We will ride through the revenue constraints that we may or may not have."

New Zealand Herald , Aug 27 2005

Dr Brash, who wants all petrol taxes diverted to the Government's general account to be put into roading, said his party could not afford to wipe the April levy while also cutting income tax.

At his session with Grey Power's Counties Manukau branch, he was asked two questions about petrol prices and the hardship this was inflicting on superannuitants.

Dr Brash said benefits flowing to superannuitants from increases in after-tax income "should cover the increase in the price of petrol".

He said there was a pressing need to invest the petrol tax money into the roading network.

Dominion Post, 26 August

National's finance spokesman John Key said National had no plans to remove the excise tax imposed by Labour if it were successful in forming a government.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>


Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>


With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>


Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>


Wellington: Predator Free Capital Plan

Wellington City Council (WCC), the Greater Wellington Regional Council (GWRC) and NEXT Foundation, today announced a joint collaboration to make Wellington the first Predator Free capital city in the world. More>>


Gordon Campbell: On Judith Collins’ Efforts At Self Correction

Thousands of prisoners currently in prison may be entitled to an earlier release than expected – and compensation – because Corrections has incorrectly calculated their term of imprisonment. Unless of course, the government buries its mistakes by changing the law and retro-actively getting itself off the hook… More>>


More Justice & Corrections

Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news