1. JOHN KEY (Leader of the Opposition) Link to this
to the Prime Minister
Does she have confidence in the Minister of Finance, the Minister of Education, and the Minister for Social Development and Employment; if so, why?
Rt Hon HELEN CLARK (Prime Minister) Link to this
Yes, because they are all hard-working and conscientious Ministers.
Does the Prime Minister agree with Michael Cullen that National’s policy of removing the cap on charitable donations is just a cut-and-paste from the Government’s own discussion document; if so, can she tell me exactly on what page the cut-and-paste of such a policy is, and on what page the details of the removal of the cap on donations is listed?
Rt Hon HELEN CLARK Link to this
I would have thought that any discussion document that calls for debate about whether the threshold should be capped at a certain level opens up a debate as to whether there should be a cap, at all.
Hon Dr Michael Cullen Link to this
Has the Prime Minister seen reports that Mr Key claims to donate his entire parliamentary salary to charity—if so, he would benefit by some $70,000-odd a year by the removal of the cap—or the alternative claim that he donates $40,000 to charity, by which he would benefit by over $13,000 a year from his new policy?
Rt Hon HELEN CLARK Link to this
I have seen such reports, and would regard them as entirely consistent with National’s policy of tax cuts for the rich.
Does the Prime Minister support the removal of the cap on charitable donations; if so, will it be included in this year’s Budget?
Rt Hon HELEN CLARK Link to this
All those issues are being considered in the current review. In Government we take a responsible approach, developing policy rather than slogans.
Hon David Benson-Pope Link to this
What reports has she seen on the impact of the Working for Families tax credits?
Rt Hon HELEN CLARK Link to this
I have seen reports that show that when the process of introducing the Working for Families package is completed on 1 April—with $10 a week going to every child where families are eligible for family support—our child poverty rates are due to fall below the European Union average. That last crucial step of $10 a week per child from 1 April is opposed by the National Party.
Hon Peter DunneDoes the Prime Minister recall that during the post-election discussions regarding confidence and supply arrangements, United Future raised the issue of charitable donations and the need for a review, and, as a consequence, provision was made in the agreement for there to be such a review—both of charitable giving by individuals and also of corporate donations—and does she acknowledge that without such a review, the current debate would be largely irrelevant?
Rt Hon HELEN CLARK Link to this
I want to give full credit to the member and United Future for bringing this issue into the Government’s work programme years before Mr Key went looking for a slogan.
Does she agree with Michael Cullen that New Zealanders who go to Australia for tax reasons are “functionally innumerate, and we are probably better off without them.”; if so does she think this assessment applies to Jan Cameron, the founder of Kathmandu, who went to Australia because the tax treatment of her charitable donations was far more generous there than it would be in New Zealand; and, given that Dr Cullen has been nodding his head in agreement, can I assume that he agrees with the statement that those who go to Australia for tax reasons are functionally innumerate and we are probably better off without them?
Rt Hon HELEN CLARK Link to this
To the best of my knowledge tax rates are actually higher in Australia.
Hon Ruth DysonCan the Prime Minister outline any other changes in policy and legislation that are designed to address poverty in a sustainable way?
Rt Hon HELEN CLARK Link to this
Indeed I can, because in the Labour Party we believe poverty is best tackled by good policy like Working for Families, like income-related State rents, like fair labour law, like investing in programmes for our low decile schools, like the Primary Health Care Strategy, and like lifting the minimum wage—all things the National Party has opposed.
Does the Prime Minister agree with Steve Maharey that businesses giving donations to their communities constitute Tory charity; and if so, has she corresponded with the Minister for Arts, Culture and Heritage to see what she thinks of Tory charity, given the amount that is given to the arts and culture sector?
Rt Hon HELEN CLARK Link to this
I am totally in support of philanthropy in our community. My difference with the member is that I do not think it is the primary solution to poverty.
Hon Dr Michael Cullen Link to this
The member has got his courage up at last to come into the House—goodness me! Could I ask the Prime Minister if she would be prepared to accept an offer—
Rodney HideI raise a point of order, Madam Speaker. I think you know my point of order, Madam Speaker, and I think the rules should apply to the Deputy Prime Minister as well. I think he should be asked to withdraw and apologise.
Madam SPEAKERI am sorry, I thought your point of order was going to be on the fact nobody could hear what was being said. I am sorry, Mr Hide, I do not know what you are talking about.
The Deputy Prime Minister accused a member of this Parliament of lacking courage. That is certainly outside the Standing Orders and he should be pulled up for that.
Hon Dr Michael Cullen Link to this
Speaking to the point of order, I actually said the member had got his courage up to come into the House. I was paying tribute to the courage he was now showing.
That response was in response to interjections from that side of the House. If members could just please contain themselves. If the member takes personal offence, would he please indicate and I will ask the member then to withdraw and apologise. That is the normal procedure.
Gerry BrownleeI raise a point of order, Madam Speaker. I do not want to prolong things but are you now saying that everything goes, it is a free for all, and it will only result in someone being pulled up if a particular member takes personal offence?
No, I am not Mr Brownlee. I am saying in this set of circumstances, with the chipping that was going across, there was not a lack of courage. That was not the term used. Courage was mentioned in the comment in response to another comment. Under those circumstances, in the context of the debate, of course if the member takes offence then the member must withdraw and apologise, but I have to take the context into account, and I have.
Hon Dr Michael Cullen Link to this
Given Mr Key’s references to Australia, would the Prime Minister be prepared to accept an offer from the National Party to lift the cap on charitable giving for both individuals and companies in return for two top tax rates of 47 percent and 42 percent, and a 9 percent payroll tax on business to pay for individual superannuation?
Rt Hon HELEN CLARK Link to this
In my experience, the National Party only ever refers to those parts of the Australian tax regime that it likes, and not to the total scene of the Australian tax regime.
Has the Prime Minister seen reports from reputed accounting firms that show 99 percent of New Zealand taxpayers would be far better off paying tax under the Australian system than they are under the New Zealand tax system—and that is a fact?
Rt Hon HELEN CLARK Link to this
No. I would advise the member to go away and check his facts. I would be very surprised if he could substantiate that.