Key John: Questions for Oral Answer — Questions to Ministers 
Key John: Questions for Oral Answer — Questions to Ministers 
[Volume:639;Page:9498] 
2.  
JOHN KEY (Leader of the Opposition) 
 to the  
Prime Minister 
: Does she still have confidence in the Minister of Finance? 
Rt Hon HELEN CLARK (Prime Minister) 
: 
 Yes. 
John Key 
: Why does the Minister of Finance retain her confidence when the Budget shows that 15 percent of income tax earners—that is 456000 people—now pay the top income tax rate of 39 percent after he initially had assured the nation that only 5 percent of income tax payers would pay that rate; and why does he still have her confidence given that he has had eight Budgets to fix that position? 
Rt Hon HELEN CLARK 
: Obviously people’s incomes have risen so they have gone into that bracket. But I agree with Bill English who said barely 2 months ago that now is not the time to be giving out extensive tax cuts. 
John Key 
: Why does the Minister of Finance retain her confidence when in the 2005 Budget he stated unequivocally that personal income tax thresholds would be adjusted yet in this year’s Budget miraculously those adjustments are taken away robbing New Zealanders of their only hope of ever getting a tax cut under a Labour Government? 
Rt Hon HELEN CLARK 
: Those crocodile tears from the member are totally unconvincing. He was the first to say that that was not enough and no one would notice it. How do people notice it if it is gone? 
Darren Hughes 
: Has the Prime Minister received any reports of business reaction to Budget 2007? 
Rt Hon HELEN CLARK 
: I have seen many and very positive reports starting with a report from the stock exchange which says that the Budget moves to reduce company tax rates and the tax-related incentives for New Zealanders to go into KiwiSaver mean more future certainty for businesses and individuals and which specifically describes the enhanced KiwiSaver as “strongly encouraging”. 
Sue Bradford 
: Is the Prime Minister concerned that under KiwiSaver the least well-off New Zealanders will be subsidising those who can afford to save; and does she agree that while Labour and National fight it out over middle New Zealand’s votes the children growing up in our poorest families have yet again missed out? 
Rt Hon HELEN CLARK 
: No I do not agree with that contention at all. As the member knows Working for Families has done wonders for families with children all over New Zealand. 
John Key 
: Why are low-income working people who cannot afford to save being given the triple whammy in this Budget: they do not get a tax cut they have been told they will not get a pay rise going forward and most important they are having to cross-subsidise with their taxes higher-income earners? 
Rt Hon HELEN CLARK 
: Under a Labour Government low-income people know for sure that New Zealand superannuation is safe the public health system is safe support for housing is safe and public education is safe. A Labour Government is the guarantee that low-income people are looking for. 
John Key 
: Why does the Prime Minister have confidence in her Minister of Finance when he has been receiving reports from Treasury for years indicating that the 50 percent of people who might save under KiwiSaver are already saving; and what is she saying to working New Zealanders who are middle to low income earners who do not get a tax decrease who do not get a pay increase but who do get to give more of their taxes to high-income people who the Minister of Finance already knows can save? 
Rt Hon HELEN CLARK 
: There was hardly a hard bit of information in that question. I ask when the National Party is going to work out whether or not it is for tax cuts because we had Mr English on Saturday morning refusing to confirm that he supported them Mr Key saying the next day that Mr English would do it and again Mr English as reported in today’s paper refusing to elaborate. What is their strategy? 
John Key 
: Well despite the Prime Minister saying there is not a hard bit of information maybe she needs to read her Minister of Finance’s own Budget speech— 
Madam SPEAKER 
: No. Would the member please be seated. It is important to start questions with a question and not to preface them; to do otherwise leads to a certain amount of disorder. 
John Key 
: Would the Prime Minister care to read her Minister of Finance’s own Budget speech wherein he says he is taking away the only tax cut that was ever on offer—in 2005—and for the record is silent on any future tax cuts and quite clearly states that there will be a reduction in wage demands going forward at the suggestion of the Minister of Finance because of compulsory matching? So for the record working New Zealanders are a lot worse off under Labour; no wonder they are voting National in their droves! 
Rt Hon HELEN CLARK 
: I would think that right now the National Party is trying to wriggle out of the hole it has dug for itself on KiwiSaver because at every point in this House that party has voted against it and the people of New Zealand want to vote for it and for a Labour Government. 
Hon Dr Michael Cullen 
: Can the Prime Minister confirm that the most recent votes in Parliament on tax cuts occurred on Friday afternoon—to cut the corporate rate of tax to cut the maximum rate of tax on savings in widely held vehicles and to institute a tax credit for people saving in the KiwiSaver scheme—and that the National Party voted against all three? 
Rt Hon HELEN CLARK 
: I can confirm that the National Party voted against the $20 tax credit for workers. I can confirm that the National Party voted against the business tax cut. I can confirm that National members did indeed fall through the trapdoor constructed for them. 
Jeanette Fitzsimons 
: Does the Prime Minister agree with business commentator Rod Oram who wrote in the  
Sunday-Star Times 
 that the Budget will do very little to repair the environment even though our future wealth depends on its health—and I am sorry that Michael Cullen is so bored—if so for how long does she think the economy and people can continue to prosper while the economy’s physical base is eroded? 
Rt Hon HELEN CLARK 
: As the member knows there is $650 million in this Budget for rail which is very sustainable transport. As the member knows there is considerable funding in this Budget for energy-efficiency measures and related measures. As the member knows far-reaching energy and energy-efficiency and conservation strategies are being consulted on and the Government will be making decisions on them. As the member knows a “cap and trade” system is being formulated to bring to this House. As the member knows far-reaching policy for sustainable land management is being looked at. In other words a Labour-led Government is serious about the environment. 
John Key 
: Why does she think that when National announced its policy of removing the cap on charitable donations Steve Maharey described it as Tory charity the Prime Minister described it as tax cuts for the rich and Michael Cullen went out and gave a speech in which he said he did not believe in charity and that only the redemptive power of the State could be trusted then all of a sudden that policy turned up in Budget 2007—why did that happen? 
Rt Hon HELEN CLARK 
: The member is getting a reputation for never quoting anything very accurately—never. I am happy to say that Mr Dunne and Dr Cullen had already made decisions on this matter before the National Party belatedly woke up and started grandstanding. 
John Key 
: I seek leave to table the newspaper report where Mr Dunne said that miraculously they made the statement on the very day I— 
Madam SPEAKER 
: Leave is sought to table that document. Is there any objection? There is objection.