Chauvel Charles: Questions for Oral Answer — Questions to Ministers 
Chauvel Charles: Questions for Oral Answer — Questions to Ministers 
[Volume:646;Page:15176] 
3.  
CHARLES CHAUVEL (Labour) 
 to the  
Minister of Finance 
: What significant economic initiatives come into force on 1 April 2008? 
Hon Dr MICHAEL CULLEN (Minister of Finance) 
: 
 A range of significant initiatives come into force today—news obviously for Dr Smith. The company tax rate has been cut for the first time since Labour was last in office and indeed as I said before I cannot find a historical precedent for National ever cutting the company tax rate. Combined with the research and development tax credits which come into force today this cut will allow businesses to invest more in their workers and in their long-term success. We are also today of course lifting completely the cap on charitable giving both for individuals and for companies. We are increasing the minimum wage— 
David Bennett 
: Good National policies— 
Hon Dr MICHAEL CULLEN 
: The difference is that Labour Governments do it; National only ever promises in Opposition and does not do it in Government. We are also increasing the minimum wage for the ninth time in 8 years. Today marks the commencement of employer contributions to KiwiSaver and the tax credits for employers that go with them—good news for over 500000 New Zealanders. 
Charles Chauvel 
: What reports has the Minister received on support for these initiatives? 
Hon Dr MICHAEL CULLEN 
: I have seen widespread support for these initiatives. I have also seen reports that the Opposition voted against the company tax cuts and never made any cuts when it was in Government. I have seen reports that it voted against the research and development tax credits. I have seen reports that it opposed all nine increases to the minimum wage and finally that it voted over 40 times against KiwiSaver and still has no policy on that matter. 
Rt Hon Winston Peters 
: Can the Minister of Finance confirm that the increase in superannuation rates effective from today as well as the previous increases this parliamentary term are a direct result of the confidence and supply agreement between New Zealand First and the Government in which the Government agreed to ensure that the base rate of New Zealand superannuation would not fall below 66 percent of the net average wage? 
Hon Dr MICHAEL CULLEN 
: That is correct. Of course when this Government came into office the floor had been lowered to 60 percent of the average wage and we raised that immediately to 65 percent of the average wage and now to 66 percent as a result of the confidence and supply agreement. The result of that is that a married couple on New Zealand superannuation are now receiving approximately $35 a week more than they would have done had the National Government stayed in power. 
R Doug Woolerton 
: Can the Minister of Finance confirm that the cut in the business tax rate effective from today is the result of the review of the business taxation regime secured by New Zealand First in its confidence and supply agreement with the Government—a review carried out in part to improve New Zealand’s competitiveness with Australia and to boost productivity—and what impact does he think that this rate cut will have in these areas? 
Hon Dr MICHAEL CULLEN 
: I can confirm that a commitment to a business taxation review was included in the confidence and supply agreements of both United Future and New Zealand First and it resulted in the lowering of the corporate tax rate to 30 percent. It also needs to be mentioned of course that although KiwiSaver contributions are coming into force today for employers offset in very large part by tax credits in Australia employers pay into superannuation schemes a compulsory 9 percent on all employees. 
Peter Brown 
: Will the Minister confirm that it is written into the confidence and supply agreement between Labour and New Zealand First that the minimum wage should rise to $12 per hour by 2008; if so will he state whether he is aware that New Zealand First wants this to be an ongoing process and will not settle for the miserly increases that occurred in the 1990s when the National Party was in Government? 
Hon Dr MICHAEL CULLEN 
: Indeed and it needs to be noted that during the 1990s there was only one increase in the minimum wage and that occurred only when New Zealand First was in coalition with the National Party. Left to their own devices National members fail completely to increase the minimum wage and no doubt in conjunction with Sir Roger Douglas as a Cabinet Minister or indeed a prominent backbencher they might be looking— 
Hon Dr Nick Smith 
: He’s your old mate. 
Hon Dr MICHAEL CULLEN 
: He is certainly not one of us any longer. He is one of them and they are welcome to him. They are going to have to put up with him in the future. 
Hon Bill English 
: I raise a point of order Madam Speaker. In the interests of accuracy under the Standing Orders it may be helpful for the House to know that Dr Cullen was Roger Douglas’ Associate Minister of Finance. 
Hon Dr MICHAEL CULLEN 
: I need to say that it is worth noting that I was removed from that post at the request of Sir Roger Douglas. 
Rt Hon Winston Peters 
: I seek leave because Dr Cullen’s answers on the last few questions have been so potent telling and important as a tribute to what does happen in politics as opposed to people who just make promises that he table all those answers for our ready digestion. 
Madam SPEAKER 
: Leave is sought to table those documents. Is there any objection? Yes there is.