Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Did Judith Collins Inspire Next Week’s Tax Cuts?

Did Judith Collins Inspire Next Week’s Tax Cuts?

Finance Minister Bill English is denying his promised tax cuts have been provoked by the Judith Collins “problem”.

Speaking on Prime TV’s “Prime Time with Sean Plunket”, Mr English denied Labour Finance spokesman, David Parker’s claim that the involvement of Judith Collins in the Whaleoil affair was behind the cuts.

Mr English said the cuts, which would be announced on Monday, could be afforded.

“We can control our spending to roughly the revenue we've got now,” he said.

“We’ve made allowances for tax cuts, that’s built into all the forecasts.

“Back in the budget which was back in May, we signalled that with growing surpluses there could be room for moderate tax cuts.”

But Mr English’s proposal for tax cuts was criticised by two other panel member son the programme.

Ernst and Young tax partner, Jo Doolan, said she didn’t think they were necessary.

And Morgan Foundation economist, Geoff Simmons, said that as well as the slowdown in China and Europe, health and superannuation spending was projected to rise to 20 cents out of every dollar that we earned in the future.

“Until we get a handle, until we get on top of the growth and health and superannuation spending we can't realistically talk about any sort of election bribes,” he said.

But Ms Doolan was also critical of Labour’s plans to raise taxes on incomes above $150,000.

“Is that just an envy tax, “she asked.

But Mr Parker denied that: “No it's not.

“We want to encourage more investment in research and development.

“It costs money, it costs 300 million dollars per annum, that’s actually what we effectively gather from the increase in tax rates.”

And Geoff Simmons also questioned the tax increase.

“Half of New Zealand's richest people don’t pay the top rate of income tax, “he said.

“So I think putting up the top rate of income tax is a bit of a red herring. The big issue here is that we don’t tax capital.”

But Mr English, and Ms Doolan, argued that any capital gains tax would be too complex.

“We're seeing with the capital gains tax debate, whatever its theoretical appeal, when you get down to the practicalities you end up with a very complex tax, with all sorts of holes in it, said Mr English


Deputy Prime Minister Bill English is not willing to answer questions about whether Judith Collins should have resigned earlier than she did.

Speaking on Prime TV’s “Prime Time with Sean Plunket” and asked whether she should have gone earlier he said:

“As (Prime Minister, john Key) says you don’t know when emails are coming or going.

“He just judges the things on the facts and he's made his judgements along the way."

Asked if her departure had been a good thing for the campaign, Mr English said: “We're just sticking to communicating with the public about our plans for the future.

Sean Plunket: “Which she was getting in the way of, right?”

Mr English: “Look some of its come or gone, she and Prime Minister came to some judgements about it.

“I think the public have moved on pretty quickly to wanting to hear about the issues particularly from the major parties.”

But Labour’s deputy leader, David parker said the allegations about Ms Collins undermining the Serious Fraud Office, CEO, Adam Feeley, had disturbed people.

“And they’ve said it's a pox on both your houses,” he said.

“ I think's one of the problems, and it's also starved us of oxygen in respect of the big issues that people should be voting on, is what you need to do to improve the economy and the lives of New Zealanders.

“So I'm glad we're getting back on track and talking about the substantive issues.”


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Veronika Meduna: The Kaikoura Rebuild

A Scoop Foundation Investigation

Friday will be a big day for people north of Kaikōura – and for hundreds of construction workers who are racing to reopen State Highway 1 in time for the holiday season.

By the afternoon, the South Island’s main transport corridor will be open to traffic again, more than a year after a magnitude 7.8 earthquake mangled bridges and tunnels, twisted rail tracks and buried sections of the road under massive landslides. More>>


BPS HYEFU WYSIWYG: Labour's Budget Plans, Families Package

“Today we are announcing the full details of the Government’s Families Package. This is paid for by rejecting National’s tax cuts and instead targeting spending at those who need it most. It will lift 88,000 children out of poverty by 2021." More>>


Gordon Campbell: On Defence Spending, Alabama, And Dolly Parton

The spending lavished on Defence projects to meet the risks that could maybe, possibly, theoretically face New Zealand in future is breath-taking, given how successive governments have been reluctant to spend even a fraction of those amounts on the nation’s actual social needs. More>>


Members' Bills: End Of Life Choice Bill Passes First Reading

The End of Life Choice Bill in the name of David Seymour has been sent to a select committee for consideration by 76 votes to 44. It is the third time Parliament has voted on the issue in recent decades and the first time such a Bill has made it over the first hurdle. More>>


State Sector: MPI Survives Defrag Of Portfolios

The Ministry for Primary Industries will not be split under the new government, but will instead serve as an overarching body for four portfolio-based entities focused on fisheries, forestry, biosecurity and food safety. More>>


Gordon Campbell: On Vulnerable Kids, RNZ Funding, And Poppy

The decision to remove the word ‘vulnerable’ from the Ministry for Vulnerable Children could well mark a whole shift in approach to the care of children in need... More>>





Featured InfoPages