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Economic Policy—Consistency

Tuesday 26 August 2008 (advance copy) Hansard source (external site)

Chauvel3. CHARLES CHAUVEL (Labour) Link to this
to the Minister of Finance

Has he received any reports on the importance of consistency in economic policy?

CullenHon Dr MICHAEL CULLEN (Minister of Finance) Link to this

I have received a number of such reports. For example, I have seen a report of what was billed as a major speech on infrastructure, which never once mentioned tolling of roads. I have seen subsequent reports indicating that tolls are central to National’s infrastructure plan, repeating interviews given in 2005 by the same person. Of course, it is very hard to be consistent when parties announce policies and refuse to reveal the detail behind them—one page comes out, and 30 pages remain hidden.

ChauvelCharles Chauvel Link to this

What reports has the Minister seen on consistency in economic policies around revenue reduction?

CullenHon Dr MICHAEL CULLEN Link to this

I have seen proposals for revenue reductions in the form of cuts to income tax. I have also seen proposals that suggest around $50 of this could be clawed back through new tolls on the roading system. I have seen subsequent reports that this is “exuberant” and “cantering ahead”. Of course, if somebody is merely cantering ahead, that person is merely leading the way for others to follow.

EnglishHon Bill English Link to this

Why would anyone believe what the Minister says, when—[ Interruption] If members listen they will agree with me. Why would anyone believe what the Minister says when he was against tax cuts, and cut taxes; he was against borrowing, and now he is out borrowing; he was against cash deficits, and now he has a $13 billion cash deficit; and he was against public-private partnerships and tolls, and he announced one today?

CullenHon Dr MICHAEL CULLEN Link to this

The member has forgotten that in 2003 this House voted for public-private partnerships and, potentially, tolls. This Government voted for it; that party voted against it in the division lobbies. The difference is that I have never had to stand outside my caucus room like a naughty little boy, with my hands behind my back, abjectly apologising to my leader for saying what I actually believe rather than what the public wanted to hear, as that member had to do only a couple of weeks ago.

AndertonHon Jim Anderton Link to this

Can the Minister tell the House how many blocks of cheese people could buy if they did not have to spend $50 a week on road tolls?

CullenHon Dr MICHAEL CULLEN Link to this

I am glad that at last we have come back to the iconic block of cheese that so fascinates members opposite. Of course it depends on what cheese people buy. If, for example, they go and get the Home Brand tasty 1 kilogram block of cheese at $10.99, then nearly 5 kilograms of cheese will be required to pay for those road tolls. Indeed, if we are to believe the National Party, cheese will be the new unit of currency in New Zealand if there is ever a National Government.

ChauvelCharles Chauvel Link to this

What other reports has the Minister received on consistency in economic policy?

CullenHon Dr MICHAEL CULLEN Link to this

I have seen many reports of inconsistency, which, for example, resulted in the leader of the National Party announcing that the party’s industrial relations spokesperson knows nothing about the party’s industrial relations policy; the party’s transport spokesperson knows nothing about the party’s transport policy; and the party’s finance spokesperson should just put a large piece of tape across his mouth.

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