3. SHANE JONES (Labour) Link to this
to the Minister of Finance
What recent reports, if any, has he received outlining an alternative fiscal approach?
Hon Dr MICHAEL CULLEN (Minister of Finance) Link to this
I have seen reports calling for very large tax cuts, for increased spending on health and roads, and for the maintenance of spending on education, law and order, and other areas, signalling a return to a borrow-and-hope fiscal approach. I have also seen reports stating that substantial tax cuts are no longer affordable and that an alternative Government would spend less on health. Both these reports came from Dr Brash.
Hon Dr MICHAEL CULLEN Link to this
Yes, indeed. I have seen an extraordinarily novel suggestion that is quite unusual in a modern democracy. It states: “We’re not borrowing for tax cuts; we’re getting the money from offshore.” I repeat: “We’re not borrowing for tax cuts; we’re getting the money from offshore.” This was said by Jacqui Dean in the pre-election campaign period. It is not clear who was providing—[ Interruption] They disown her. She is one of theirs, and she is being treated with contempt. She is not one of the boys on the front row, so she must be treated with contempt. Of course, Jacqui Dean never quite explained who offshore would provide this money that was not being borrowed.
Has the Minister received any reports of public reaction to alternative fiscal approaches based on large-scale tax cuts?
Hon Dr MICHAEL CULLEN Link to this
Yes, I have seen reports showing that in our neighbour country, Australia, consumer confidence has fallen, interest rates have risen, and support for the Government has fallen since the last Budget.
Craig FossCan the Minister confirm that the Government will borrow about $6 billion over the next 3 years to pay for items such as Working for Families, interest-free student loans, and 1,000 or so more front-line police, or does he criticise borrowing only when attacking the economic vision and ambitions for New Zealand of the National Party?
Hon Dr MICHAEL CULLEN Link to this
I understand that there is a new form of eye surgery available, which may give the party opposite vision, but it is a big ask.
John KeyIf we are to believe the answers to previous questions that tax cuts are a really bad thing—that they drive down the poll results, they are not good for a Government, and all the other implications he stated before—why, 2 hours after reading a Budget that was his seventh Budget without tax cuts, did he scurry off to Campbell Live and suggest there might be tax cuts in a year or two?
Hon Dr MICHAEL CULLEN Link to this
Firstly, I did not scurry to Campbell Live; John Campbell came to my office. Secondly, I did not say that 2 hours after I delivered the Budget. I said it about 2 hours before I delivered the Budget—in the Budget lock-up.