7 MAY 2016

Key Can’t Deny That NZ Has Become An ‘Antipodean Panama’

The Prime Minister’s denials re the Cook Islands ignores New Zealand’s tax history with the Cooks and the facts, says New Zealand First Leader and Northland MP Rt Hon Winston Peters.

“The Prime Minister’s denial today of any responsibility for the Cook Islands being in the Panama Papers exposes his lack of understanding of New Zealand history with that country.

“Going back to the Muldoon and Tom Davis governments, when our Foreign Minister Brian Talboys signed off taxation treaties with the Cooks,and then to July 2009 when the Key government entered two tax-related agreements on the exchange of information specifically about two matters: tax avoidance and tax evasion (similar agreements were entered into with the Netherland Antilles and Bermuda).

“It is clear from the Panama Papers that these agreements have not been followed and as a result New Zealand is suffering serious reputational damage.

“As an aside, in the heat of the Winebox inquiry in the 1990s the Niue Government set up similar arrangements to the Cook Islands and operated them for 20 years until they were shut down in 2014.

“Mr Key cannot avoid his responsibility as New Zealand has given substantial aid to the Cook Islands and Niue in the meantime.

“The least NZ taxpayers could expect is that they don’t, by connected trust arrangements, involve themselves in activities damaging to New Zealand’s reputation internationally.

“Countries New Zealand is now dubiously linked to include - the British Virgin Islands, the Bahamas, Cayman Islands, Jersey, Guernsey, Panama, Bahrain, Barbados, Monaco.

“Mr Key’s decision to turn a Nelsonian eye to activities happening on his watch will be regretted by right-thinking New Zealanders.

“As for the IRD assembling a crack team to get the bottom of this issue, precisely who would that be – hopefully not Mr John Nash who Mr Key said was looking into this matter just three weeks ago.

“Footnote: he was exposed for his shortcomings when he fronted the Winebox Inquiry.”

ENDS

© Scoop Media