Maori Party Needs To Demonstrate Principle Over GST Hike

Alliance Economic Development spokesperson Quentin Findlay has congratulated the Maori Party MP, Rahui Katene for stating that the Maori Party could consider walking away from their coalition agreement with the National-led Government if GST was increased to 15%.

Mr Findlay said that it was a principled comment that recognised the reality of the situation – an increase in GST would be unfair and could not be offset by any compensation to lower waged workers.

He says that beneficiaries, students and superannuitants could only expect a small increase that would not cover GST fuelled price increases on basic living essentials such as food, power and phone.

"This National Government has already shown its hostility to workers with its pitiful 25 cent increase to the minimum wage and its statements to public sector workers that they should not expect wage or salary increases."

“GST is an indirect and regressive tax and it’s good to see that the Maori Party recognises that an increase in GST would hurt lower to middle income earners."

Mr Findlay noted that the tax issue was one of the defining moments for the National-led Government and the Maori Party needed to stand by its principles in relation to it.

“It is quite obvious that National is listening less to the Maori Party and more to ACT. As a result this Government has now decided to impose economic and tax reforms that benefit the rich while penalising the poorer sections of the community.”

Mr Findlay noted that it was, however, one thing for the Maori Party to recognise the danger in raising GST and another thing to take action.

“When and if push comes to shove, the Maori Party needs to stand by its principles and act and if that means leaving the coalition then it should do so.”

The Alliance Party supports phasing out GST and introducing a progressive tax system.

ENDS

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