4. R DOUG WOOLERTON (NZ First) Link to this
to the Minister of Finance
Has he received any reports regarding the virtues of providing tax relief to aid the performance of exporting companies, and is he considering providing tax relief for exporters as part of Export Year 2007?
Hon Dr MICHAEL CULLEN (Minister of Finance) Link to this
The most recent report of many I have received on this and similar matters is from David Skilling of the New Zealand Institute, along with comment in support of it. All aspects of business taxation are being considered as part of the business tax review, which is a provision of the confidence and supply agreements with both New Zealand First and United Future.
Can the Minister see the potential value in changes to the taxation regime for exporters, especially in the wake of recommendations of the report of the New Zealand Institute, which outlines changes to the tax regime as an important part of providing incentives for New Zealand business to expand into overseas markets?
Hon Dr MICHAEL CULLEN Link to this
Certainly I believe that these matters are worth considering alongside other changes within the taxation system.
Shane JonesHas the Minister seen any reports on the priority that should be accorded to changes to business tax, such as tax relief for exporters?
Hon Dr MICHAEL CULLEN Link to this
I have seen reports indicating that no specific tax relief should be given to exporters and that any relief in business tax in general should wait until after some billions of dollars a year of personal tax relief—and only if it can then be afforded. That was a National Party policy at the last election.
John KeyIs the Minister of the view that New Zealand companies that export to America could, in fact, be in need of some export incentives following the performance of New Zealand’s Minister of Foreign Affairs, the Rt Hon Winston Peters, who clearly set back our relationship with America by rudely interrupting Senator John McCain, a friend of New Zealand; or will the Minister reserve his view about tax incentives for New Zealand companies that export to America until we see whether they are in even greater need post Mr Peters’ meeting with Condoleezza Rice?
Hon Dr MICHAEL CULLEN Link to this
I am sure the slightly hurt feelings of two or three New Zealand reporters who were asked to leave the interview as a result of a misunderstanding will not affect New Zealand’s trade with the United States.
Can the Minister confirm that New Zealand First has been a key contributor to the discussions surrounding Export Year 2007, and that New Zealand First has long advocated policies aimed at boosting our trade performance, such as tax abatement schemes on new exports?
Hon Dr MICHAEL CULLEN Link to this
I can confirm that New Zealand First has consistently promoted support for stronger exporting and, indeed, for savings—unlike some parties in the House, which regard both savings and exporting as somehow irrelevant to economic performance.