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Will National find the guts to reconsider…

Hon Dr Michael Cullen
Minister of Finance

12 September 2005 Media Statement

Will National find the guts to reconsider…

“Will the decision this morning by the petrol companies to drop prices give National the guts to reconsider its plans to reduce the excise tax,” Finance Minister Michael Cullen asked.

“We already know from National that a reduction in excise would affect its ability to deliver on other areas of policy.

“Don Brash himself was reported only two and a half weeks ago as saying that, if they waived the petrol tax, their capacity to cut income taxes would be to that degree reduced as they can’t do both.

“And the roading sector has already expressed concerns that a suspension of the excise would mean the cancellation of much needed roading projects.

“Given all these considerations, the fact that prices are already trending down should persuade National that this is one u-turn too many,” Dr Cullen said.

ENDS

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