Gosche Mark: Questions for Oral Answer — Questions to Ministers 
Gosche Mark: Questions for Oral Answer — Questions to Ministers 
[Volume:649;Page:18109] 
1. Hon MARK GOSCHE (Labour—Maungakiekie) 
 to the  
Minister of Finance 
: What reports has he received on support for the tax cuts legislated for on Budget night 2008? 
Hon Dr MICHAEL CULLEN (Minister of Finance) 
: 
 I have seen widespread support for the tax cuts that come into force 4 weeks from tomorrow which will see a couple on the current average household income of $72000—split two-thirds and one-third—with two children aged 11 and 8 better off by $2223 a year from 1 October rising to $4397 a year or $85 a week from 1 April 2011. 
Hon Mark Gosche 
: Has the Minister seen any reports of plans to remove aspects of this tax cut package? 
Hon Dr MICHAEL CULLEN 
: Yes. Despite voting in favour of the package the leader of the National Party Mr Key seemed to confirm yesterday that National plans to scrap the April 2011 tax cuts. Indeed every time details appear about National’s planned tax cuts it is clear that it is not planning to offer New Zealanders more but is simply engaging in a smoke and mirrors exercise to deliver less to those on low and middle incomes and more to those on higher incomes. 
Hon Bill English 
: Can the Minister confirm that before the 2005 election he promised tax cuts and that afterwards he cancelled them when he could afford them; so this time around when he has promised tax cuts again why should people believe that he will follow through on them when his fiscal outlook is not nearly as good as it was? 
Hon Dr MICHAEL CULLEN 
: The member may not be aware of it but the tax cuts have been legislated for and come into force on 1 October. That could have been conveyed to Lord Ashcroft only a few days ago. 
Hon Mark Gosche 
: Has the Minister seen any reports on support for tax cut packages similar to the package announced in this year’s Budget? 
Hon Dr MICHAEL CULLEN 
: I have seen a report that tax cuts should primarily benefit lower and middle income families who are most in need rather than those at the top end of the income scale. That report comes from a United States senator Barack Obama who differs from Mr Key on this issue but who shares other similarities with him. As indeed a reader of the  
New Zealand Herald  
pointed out “They are scientifically similar in that they are both male bipedal mammals with an identical number of arms legs and internal organs.” The difference of course is that Mr Obama stands for change you can believe in. 
Hon Peter Dunne 
: What does the Minister say to those who see this year’s tax cuts as merely a down payment on the likely increase in household costs arising from the implementation of the emissions trading scheme given that the Government’s compensation package announced yesterday will give them a mere $2.15 a week in 2010 by way of compensation? 
Hon Dr MICHAEL CULLEN 
: The compensation will fully compensate households on average for the impact of the emissions trading scheme in relation to electricity prices. It is possible of course that some families will not be fully compensated and some slightly more than that but I am sure that if the member follows the details he will realise that a great deal of effort has gone into trying to make the compensation as best as it possibly can match actual household needs.