Treasurer Bill English said that Labour's failure to rule out the Alliance's land tax proposal opened the way for new taxes on top of the personal tax rate increase promised in the first term of a Labour/Alliance government.

"Up 'til now, there have been three parts to Labour's tax policy:
 higher personal income tax for people earning over $60,000
 reversing the 20 cents to $40,000 tax reduction proposed by National which would benefit everyone earning over $9,500
 a review of all other taxes.

"But at the first serious test of that position by the Alliance, Labour have been unable to hold their line.

"Labour is refusing to rule out the land tax proposal and has been reported as saying it's a matter for negotiation depending on the Alliance's post-election strength.

"To accommodate Alliance's expenditure proposals, even to a limited extent, a Labour-led government would either have to put taxes up further or introduce new taxes. Labour has finally had to acknowledge that," said Mr English.

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