2. JOHN KEY (Leader of the Opposition) Link to this
to the Prime Minister
Does she stand by her statement that “If you look at some of the things we have done this term, it has taken a while to build up the kitty for a substantial tax package. It has taken a while to build up the kitty for Working for Families. It has taken time to work up the kitty for interest-free loans and the early childhood programme. So undoubtedly there will be areas we will build on for next time, which will be new.”; if so, why?
Rt Hon HELEN CLARK (Prime Minister) Link to this
Yes; because unlike the Leader of the Opposition I am not reckless with public money.
Would it be useful for the Prime Minister if I deciphered her statement for New Zealanders, and it would go something like this—Labour is going to run very large surpluses, like the $8.7 billion surplus it announced today, so that it can build up the kitty to try to buy its votes next year, in election year.?
Rt Hon HELEN CLARK Link to this
I know that the National Party is just so jealous that a Labour Government has run a strong economy with strong fiscal surpluses, and therefore has many choices available to it in drawing up a Budget.
Is the Prime Minister aware that the last four surpluses now total $34 billion, and would she like to explain to New Zealanders why they are struggling to pay increased interest rates under a Labour Government, why they are paying increased rates under a Labour Government, why they are paying increased food and electricity prices under a Labour Government, and, most of all, why, while they are struggling, it is good enough for her Government to hoard more tax revenue than is required?
Rt Hon HELEN CLARK Link to this
The member really should not confuse operating surpluses and cash surpluses. Secondly, it is quite clear that the National Party’s 2005 tax-cut policy was so inflationary that mortgage rates would have been considerably higher had New Zealanders ever had the misfortune to have it inflicted upon them.
Is the Prime Minister aware that yesterday Michael Cullen told the House that there were four tests that had to be met in terms of tax cuts being affordable; in fact, one of those tests was met in 2004, in which case why was there not a tax cut that year, or is that because 2004 was not an election year?
Rt Hon HELEN CLARK Link to this
I would have thought even the member knew the difference between meeting one test and meeting four.
Can I then repeat the question for the Prime Minister; in 2004 the four tests were met and a tax cut was not delivered, and in fact the only time a tax cut for New Zealanders was delivered under her Government was 2005—it was promised but never delivered, because Michael Cullen took it off them the next year?
Rt Hon HELEN CLARK Link to this
The member really should go back to previous Budgets. In previous Budgets the Government implemented substantial tax cuts for families in two consecutive Budgets. It has implemented tax credits for KiwiSaver for both employees and employers, and, of course, the substantial business tax package to improve growth prospects.
Hon Jim AndertonHas the Prime Minister received any reports on any previous Government’s term of office over 4 years that brought a surplus of $30 billion, tax cuts of between $2 billion and $3 billion, the lowest level of unemployment in two to three decades, and a reduction in poverty for the most vulnerable New Zealanders, all at the same time?
Rt Hon HELEN CLARK Link to this
One would, indeed, have to go back a long way to find a Government with as strong a record as this Labour-led one, which explains why we have had this outbreak of fiscal envy from the other side of the House.
Can the Prime Minister explain to New Zealanders why it is better that she hoards more of their cash than she actually needs to run the Government’s books, and they have to struggle to make ends meet?
Rt Hon HELEN CLARK Link to this
Of course the Government has done a lot to relieve pressures on families and on superannuitants. I note that even by the Leader of the Opposition’s own admission his policy on tax cuts would leave middle-income New Zealanders worse off than they are under Labour’s Working for Families policy.