1. SHANE JONES (Labour) Link to this
to the Minister of Finance
What reports, if any, has he received on changes to the Working for Families programme and tax rates?
Hon Dr MICHAEL CULLEN (Minister of Finance) Link to this
I have received reports, apparently emanating from the Leader of the Opposition, that suggest that the improvements to Working for Families announced in late 2005 should be abolished. That would mean lowering the threshold for abatement back down to $27,535 and increasing the abatement rate to 30 percent, from 20 percent. That would mean that families with a household income of over $27,500 would lose out. For example, a couple with a joint income of $60,000 a year and two children could lose as much as $82 a week and a minimum of $43 a week, depending on the age of the children.
Has the Minister seen any reports on the likely reductions in tax rates that could be paid for by cuts to Working for Families of up to $82 per week for a family on $60,000 a year?
Hon Dr MICHAEL CULLEN Link to this
Yes, by reducing that family’s income by between $43 and $82 a week, and by rededicating the money so saved from Working for Families to across-the-board tax cuts, tax cuts of almost $5 a week could be delivered. That makes a mockery of Mr Key’s claim that no one would be worse off under that policy.
Hon Bill EnglishIs the Minister aware that the reports are wrong; and when is he going to explain his own economic management to the country as to why people are going to be paying higher interest rates for longer, and why jobs are being exported—when is he going to explain that, instead of wasting his time on attacking everybody else’s policy in order to avoid the real issues?
Hon Dr MICHAEL CULLEN Link to this
Unfortunately, even before the last election Mr Key admitted some families would be worse off under National’s policy. As to the matter of the so-called jobs being exported, I want to ask Mr English whether it is now National’s policy to reimpose high tariffs, and whether it is now National’s policy to oppose free trade agreements. If it is, why did Mr Key not announce that in his speech today, instead of announcing nothing at all on exporting?
Gerry BrownleeI raise a point of order, Madam Speaker. This is question time, for the Opposition to ask the Government questions. Clearly Michael Cullen cannot answer them, so he has asked Bill English some questions. Do we take it that leave is going to be granted for Mr English to give the House a long dissertation on each of those points? I so seek leave.
Madam SPEAKER