Cullen Michael: Estimates Debate — In Committee 
Cullen Michael: Estimates Debate — In Committee 
[Volume:618;Page:14320] 
Hon Dr MICHAEL CULLEN (Minister of Finance) 
:  
I am pleased to take the first call in this debate and to respond to one or two of the slightly hysterical comments made by Mr Key. He is still learning the role of course. Can I take him first of all through his first little topic which was why do we have a 39c in the dollar top taxation rate? The obvious question in reply to that is why is National not promising to abolish it as its top priority? That was National’s policy up to only a few months ago and then Dr Brash looked at the numbers and dithering said: “Ah! This doesn’t look too good. This isn’t what the public wants. We’ll start talking about tax cuts for low and middle income earners instead.” —even though he said last year that one would have to cut the top taxation rate to get the economy moving. Despite the fact that we did not cut the top taxation rate the economy is moving so strongly now that a northern market commentator is expecting interest rate rises—on which I cannot comment being the only person in the country who cannot comment on interest rate rises—by the Reserve Bank within the near future. What we see is that the economy is growing extraordinarily strongly despite the fact that various rather large pips keep squeaking occasionally because there is a very small squeeze on them. That comes of course from a party that once had a 66c in the dollar top taxation rate on people earning certainly less than $60000 a year. Taxation cuts was the first winner today from Mr Key; he is going to run on the policy that the top taxation rate should be lowered. That would not affect the great majority of New Zealanders most of whom would be delighted if they earned $60000 a year. Most of them do not earn as much money as that and do not expect to do so at any stage during their working lives. 
But let me turn to Mr Key’s second little topic about the railways. He said the National Party’s policy was that the Government should not have bought the railway track back. Well that is a really popular policy as well! I think that something like 80 percent of New Zealanders think this Government should have bought the railway track back. Why did we buy it back? We bought it back because a previous National Government sold the railway track—against Treasury advice. The sale of that asset is the only one I know of when Treasury’s advice should have been taken. When National sold the railways Treasury said the track should not be sold because the track was the infrastructure and the Government needed to make sure it was maintained and kept in place. But what happened? The track was run down over the next years to a parlous state. Now Mr Key says: “Oh my goodness! It’s going to cost some money to fix up the railway track”—which National sold off. 
But then Mr Key says the railways board we appointed is stacked with well-known left-leaning socialists—Labour Party supporters. 
John Key 
: Hacks. 
Hon Dr MICHAEL CULLEN 
: “Hacks” is the word National members used. I am sure that Cameron Moore former president of the Canterbury Manufacturers Association—a person I suspect of somewhat conservative political leanings; he certainly was like that when he was head prefect of Christ’s College some 40-odd years ago—will be somewhat offended to be described as a Labour Party hack. Now who was National’s No. 2 exhibit as a Labour Party hack? It was Dr Clive Matthewson. Well apart from the fact that he is the uncle of Katherine Rich—we will not dwell upon that for too long; we would not want to suggest by any chance I had been sort of suborned by the delights of Mrs Rich on this matter—what we can say about Dr Matthewson is that the last time he was in Parliament let us remind ourselves he voted for a National Government on confidence and supply. Such a generous Minister or so non-hacked off am I—or so happy is he—in terms of somebody who had been a good friend but who left the Labour Party crossed the floor and voted with National that I have appointed him to the board of TrackCo. Why? Because Dr Matthewson happens to be an able person. He happens to be a civil engineer and he brings crucial skills to the job. 
Mr Key has suddenly gone very quiet. Let me point out that in 1996 Mr Key was still overseas practising dodgy things on the international finance market—manipulating paper money all over the place. He was not aware that in 1996 there was a party then called the United party which Dr Matthewson was the leader of and which entered into in effect a coalition agreement with the then National Government and saved National’s bacon—kept it in power. I appointed Dr Matthewson and Cam Moore to the board and appointed other people to the board who are able people. 
John Key 
: Mates. 
Hon Dr MICHAEL CULLEN 
: It is probably that I have lots of mates and Mr Key does not have any. It is very hard for me to appoint people who are not mates of mine to the board of anything. I apologise for that fact.