3. GORDON COPELAND (Independent) Link to this
to the Minister of Finance
Has the Government since November 1999 increased excise duties on tobacco and alcohol, increased road-user charges, and imposed new levies or fees on electricity, gas, telecommunications, buildings, fire services, passports, and car ownership?
Hon Dr MICHAEL CULLEN (Minister of Finance) Link to this
The Government has increased some charges and reduced others. With the exception of the indexation of alcohol and tobacco excise duties, increases have reflected the costs of services provided. On the other hand, since 1999 accident compensation employers’ levies have been reduced, Government charges for conveyancing have dropped, and charges for filing company annual reports have been abolished, and statistics that were charged for in 1999 are now available for free.
Can the Minister confirm that since November 1999 the Government has increased the accident compensation levy on petrol from 2.3c per litre to 7.33c per litre, which is an increase of 5.03c per litre, and has increased the petrol excise duty from 32.708c per litre to 42.524c per litre, which is an increase of 9.816c per litre, thereby increasing the cost of petrol by a total of 16.7c per litre once GST on those increases is added?
Hon Dr MICHAEL CULLEN Link to this
I do not question those figures. The accident compensation levies are to pay for the cost of motor vehicle accidents, and have to be provided for under the accident compensation legislation, which provides for full funding. Had those levies not increased, there would have had to be transfers out of general taxation into the accident compensation funds. In terms of the other matters that the member raised, petrol until recently was indexed. As opposed to the situation in 1999, all the excise duty on petrol, other than things like the accident compensation levy and the local government levy, goes into the land transport account to pay for roading and public transport. There is no transfer into the Crown account.
Charles ChauvelHon Dr MICHAEL CULLEN Link to this
Since 1999 the Government has taken action that has seen the charges for doctors’ visits and prescriptions drop dramatically; it has introduced 20 hours’ free early childhood education; the rates rebate scheme has been significantly enhanced to reduce the burden of rates; income-related rents have been reintroduced to reduce the cost of housing for many vulnerable families; and subsidies for nicotine replacement therapy have been introduced, making it cheaper than it was in the 1990s. The list goes on and on.
Why, then, given that the increases in these duties, charges, levies, and fees have increased the cost of living for all New Zealanders, has the Minister never in over 8½ years seen fit to give an offsetting income tax cut to the 2.5 million taxpayers in this country who are excluded from the relief given through the Working for Families package?
Hon Dr MICHAEL CULLEN Link to this
I have good news for the member: on Thursday I will be announcing such tax cuts. I look forward to his support for them; they are consistent with the views he has expressed over many years.
I seek leave to table a complete schedule of changes in duties, levies, and charges since November 1999.
Madam SPEAKER