1. Hon BILL ENGLISH (Deputy Leader—National) Link to this
to the Prime Minister
Does she stand by her statement that a mortgage interest rate levy is a “dead duck” and “unlikely to see the light of day again”; if not, why not?
Does the Prime Minister stand by her statement of 29 April in respect of a capital gains tax on housing investment that “It’s not been considered. We’ve had the door firmly closed on that.”, and given that she ruled out both of those proposals, will she also rule out the recent proposal to ring-fence losses on investment in housing, for tax purposes?
Rt Hon HELEN CLARK Link to this
The member is correct that I also ruled out the issue of the capital gains tax as not being Labour Party policy. I am aware that there is a select committee inquiry; I am not aware of whether the National Party will actually be participating in it. But before that inquiry takes place, no doubt all manner of ideas will be canvassed, including the idea of ring-fencing losses on investment properties.
Darren HughesHas she received any reports indicating a willingness to discuss issues around mortgage interest rates?
Rt Hon HELEN CLARK Link to this
It is certainly my understanding that the Leader of the Opposition has expressed interest in discussing instruments that might reinforce monetary policy, but he has consistently been overruled by his deputy, Mr English.
Can the Prime Minister confirm that she has overruled the Minister of Finance on three occasions when he has floated proposals to attack housing investment; and does this mean that no one should listen to Dr Cullen, because in this area he does not have the backing of the Prime Minister for what he says?
Given that the Prime Minister has had to overrule the Minister of Finance on three separate proposals he has made in respect of tax policy, which Minister of Finance does she back on personal tax—Dr Cullen, who said he would make announcements on the future of personal tax reductions in the next Budget, or Trevor Mallard, who told an Australian newspaper that Labour would cut personal taxes in the next Budget?
Rt Hon HELEN CLARK Link to this
I said in reply to the previous supplementary question that I could not confirm any such thing. Therefore, the “given” that started this question was, of course, not a given at all. Secondly, having subjected the latter two statements to which the member refers to close textual analysis, I did not see any contradiction.
Does the Prime Minister support Trevor Mallard’s proposal to cut personal taxes in the next Budget by increasing the thresholds or Dr Cullen’s opposition to tax cuts under almost any circumstances, including his proposal today that any extra money should go to top-ups for KiwiSaver, not personal tax cuts?
Rt Hon HELEN CLARK Link to this
There are so many misquotes in that question that it is scarcely worth even responding to. I will repeat what I said in my answer to the previous question. Having looked very closely at both the statements concerned, I was hard-pressed to find a contradiction.
Will the Prime Minister now tell the House whether she intends to overrule Dr Cullen’s proposal that tax losses on investment in housing be ring-fenced, or does she back that proposal; if so, why, when she ruled out the previous two proposals?
Rt Hon HELEN CLARK Link to this
As I understand it, it is a proposal made by the Reserve Bank that has gone to a select committee, which the National Party may or may not participate in.
Is it now the Prime Minister’s position that Dr Cullen has never said anything about ring-fencing tax losses on investment housing; and why does she not just front up and admit to Parliament that she has had to overrule him twice, and that she will have to overrule him again, because she does not support his attacks on investment in housing?
Rt Hon HELEN CLARK Link to this
The member must be completely deaf. Dr Cullen has advised this House that it is not Government policy, and he has not said that it is Government policy.