3. CRAIG FOSS (National—Tukituki) Link to this
to the Minister of Finance
What reports has he received on how Budget 2010 delivered for New Zealanders?
Hon BILL ENGLISH (Minister of Finance) Link to this
The reactions have been generally pretty positive—so much so that the Opposition did not even ask a question on the Budget today. Most commentators agree the Budget has struck the right balance between maintaining public services and controlling debt while making worthwhile and overdue improvements to the tax system, which will help to rebalance the economy.
A wide range of surveys have indicated a public response. I will simply refer to one from the New Zealand Business Council for Sustainable Development, where a vast majority—about 80 percent—approved the reductions in personal income tax rates, 73 percent supported the tax base broadening measures, 69 percent supported the Government’s investment in ultra-fast broadband, and around 70 or 80 percent supported the increased investment in schools and hospitals. Rounded up with all the issues, including the tax increases, approvals outnumbered disapprovals by about two to one.
I think it means that New Zealanders have a pretty good grasp of what went wrong in this economy in the last decade, and what is required to put it right. It also means that when they understand the issues—and in this case, they are issues that affect every household and every small business—they will support bolder policy initiatives. Taxpayers who are interested to know their own position can go to the website www.taxguide.govt.nz. The website has had about 300,000 hits, and I encourage all New Zealanders who want to understand their position to visit it.
We had a number of suggestions, including some that were raised in this House. We rejected an increase in personal tax. We rejected the idea of fiddling with GST to create exemptions. We rejected the idea of getting back on the treadmill of unsustainable Government spending, and we rejected the idea of significantly increasing Government debt beyond responsible levels. All those suggestions came from the Labour Opposition.