1. SHANE JONES (Labour) Link to this
to the Minister of Finance
Has he received, in the last few days, any independent comparative reports on New Zealand’s levels of taxation?
Hon Dr MICHAEL CULLEN (Minister of Finance) Link to this
No, I have not received what I would consider to be any independent reports in the last few days. I did receive an OECD report a few weeks ago that, based on robust comparative analysis, found that New Zealand had the third lowest tax wedge for the average worker in the OECD.
How can he say he has not received any independent reports in the last few days, when the Centre for Independent Studies released a report on Monday?
Hon Dr MICHAEL CULLEN Link to this
That report can hardly be called independent, when its author is a former press secretary and researcher for the National Party. Indeed, I have his card in my hands—Philip Rennie, media research assistant to the Leader of the Opposition, who at the time was Mr English.
John KeyCan the Minister confirm that according to the Budget Economic and Fiscal Update, the operating surplus over the next 3 years will be approximately $13.4 billion, that that represents the surplus required to pay for the day-to-day running of the country—actually, it does—and that he could have plenty of room for tax cuts if he wished to fund his capital purchases out of some borrowing going forward?
Hon Dr MICHAEL CULLEN Link to this
No, I certainly cannot confirm that. What I can confirm, first of all, is that the Government is running quite significant cash deficits over the coming 4 years, requiring a significant increase in borrowing. I can also confirm that Mr Rennie’s main comparison is with the United States. The United States is running, at the moment, a fiscal deficit that is more than three times the size of New Zealand’s GDP.
Hon Dr MICHAEL CULLEN Link to this
Yes, I have just seen a report from another former National Party press secretary that presages a forthcoming policy that will make even National’s 2005 tax policy look one-dimensional. This report was headed: “Thanks, Don. Now off you go.”