Brown Peter: Questions for Oral Answer — Questions to Ministers Questions to Members 
Brown Peter: Questions for Oral Answer — Questions to Ministers Questions to Members 
[Volume:620;Page:16178] 
12.  
PETER BROWN (Deputy Leader—NZ First) 
 to the  
Minister of Finance 
: Has he received any reports regarding the public perception surrounding his planned fuel tax increase for April 2005; if so what do the reports indicate? 
Hon Dr MICHAEL CULLEN (Minister of Finance) 
: 
 I have seen in the Christchurch  
Press 
 two critical comments. One is from the head of a major transport firm and the other is from a failed candidate for the National Party’s Remuera candidate selection. 
Peter Brown 
: Is he concerned at the impact this petrol tax increase will have on New Zealanders particularly low and fixed income New Zealanders especially when oil prices are at an all-time high; if so what plans has he made to alleviate this problem? 
Hon Dr MICHAEL CULLEN 
: Obviously to the extent that this ever gets reflected in the consumer price index and that flows on to a range of areas particularly New Zealand superannuation but I am sure that these are matters that we will continue to keep under some consideration. 
Hon Mark Gosche 
: Is the Government considering any modifications to its fuel tax proposal? 
Hon Dr MICHAEL CULLEN 
: Yes. I am considering recommending to Cabinet that the bill be altered so the increase can be deferred and brought into force by regulation should oil prices not have come down from their present high levels by 1 April 2005. 
John Key 
: Can the Minister confirm what would be the rate of oil prices measured in New Zealand dollars that oil would have to fall to before the Minister would shelve the proposal? 
Hon Dr MICHAEL CULLEN 
: I certainly do not intend to shelve the proposal as that would shelve something like $200 million a year of increased investment in roading. It is a matter of timing and we will keep that under advice. 
Mr SPEAKER 
: Incidentally Mr Brown your party has asked all of its questions. 
Keith Locke 
: Has the Minister received any suggestions from those who want a postponement of the fuel tax increase as to which transport project should be cancelled? 
Hon Dr MICHAEL CULLEN 
: No but I assume that none in Tauranga would be first on the list. 
Gordon Copeland 
: Have any economic forecast been completed based on a crude oil price of US$50 per barrel plus the possible fuel increase on the one hand and a weakening of the New Zealand - US dollar exchange rate on the other; if so what are the likely impacts on the New Zealand economy? 
Hon Dr MICHAEL CULLEN 
: The next forecast will be associated with the Budget Policy Statement in December; clearly those have not been completed yet. I do not think anybody in the forecasting community is picking that oil prices will stay up above US$50 per barrel. Certainly the futures market in these areas would not suggest that is the case. 
Larry Baldock 
: Does the Minister know of a crystal ball anywhere that would enable him to predict accurately the cost of fuel for April next year when the proposed fuel tax increase would come into force in light of the market volatility caused by events in Nigeria Russia Venezuela the Gulf of Mexico and the Middle East; if not is it not prudent for the Government to continue to plan to address our roading infrastructure deficit? 
Hon Dr MICHAEL CULLEN 
: I think that is an excellent comment. Indeed if I possessed a crystal ball of that nature I would be tempted to resign from Parliament and make a great deal of money out of its possession.