Agenda: Key Reaching Out To Minor Parties

In the wake of last week's agreement between the Labour and National Parties, National Leader John Key said he was making moves to "reach out" and talk with other parties.

Speaking to interviewer Lisa Owen on TVOne's "Agenda" programme today, Mr Key said cross party talks were necessary under an MMP system.

"We can love or hate it and lots of people don't like it but the reality is we live in an environment where we need to be able to work with other political parties".

Mr Key said last week's events showed the National Party were willing to talk and compromise with other parties and this was more than what Labour had shown.

"But the truth is we have done it once in our political history and Labour's never done it"

Mr Key also told "Agenda" that minor parties would take notice of this action.

"I think they will look at us able to least work and they will say well John Key, national party, understands that, understands the importance of being able to work with and have some compromise and not being belligerent".

But Mr Key reminded Lisa Owen that the National Party have always held talks with minor parties because there is a lot of common ground between them.

"We do reach out and talk to them all the time and that is a right across the board and I think there is a willingness on their part to talk to us and there is certainly a willingness on our side to have a good relationship with them now".

NATIONAL MAY SUPPORT KIWISAVER TAX CONCESSIONS

National Party Leader John Key is signaling his party will consider supporting Labour's rumoured tax cut-Kiwisaver tradeoff.

Speaking to interviewer Lisa Owen on TVOne's "Agenda" programme today, Mr key said he and the Hon Bill English are unlikely to stop the Labour Party if it brings the scheme to the table.

Mr. Key is predicting Labour might spend as much as one billion dollars offering the cuts in the Budget.

"I think it is something we will look at and Bill has not ruled it out. It is something we want to have a look and see what happens here".

Mr Key said the tradeoff is a better alternative to having no tax cuts at all.

"I guess arguably it is better than no tax cut at all but the real question is why New Zealand had to wait eight years to get any tax cuts at all?"

However, Mr Key said a scheme which would incentivise saving and investment habits is a better option.

"One might buy the argument that I pushed when I was a financial spokesman, which is tax other areas of investments much more lightly. It is another way of achieving the same outcome…"

Mr key also added a tax cut of four to eight tax in a Kiwisaver-tax cut tradeoff would disadvantage people on low incomes and benefit New Zealand's high income earners.

"If the tax cut is four to eight percent and you can pay in tax free, the people that will be getting that are the people with high incomes. Now they are the people who can afford to save and that is fine but it is very interesting coming from Labour Government who will basically be saying to their voters sorry, we don't care about you enough to give you a tax cut… All compulsion would do is take money off them when they can least afford to do so".

ENDs

© Scoop Media