Brash Don: Questions for Oral Answer — Questions to Ministers 
Brash Don: Questions for Oral Answer — Questions to Ministers 
[Volume:622;Page:17424] 
3.  
Dr DON BRASH (Leader of the Opposition) 
 to the  
Prime Minister 
: Can she confirm that she has refused to rule out tax cuts before the next election as reported in the  
Press 
; if so why? 
Rt Hon HELEN CLARK (Prime Minister) 
: 
 Yes; to eliminate any possibility of the flip-flops for which the member is becoming known. 
Murray Smith 
: I raise a point of order Mr Speaker. My question specifically asked the Minister why the Government was not going to amend the legislation. His answer simply was to restate that the Government was not planning to amend it. 
Mr SPEAKER 
: Quite obviously the member has not been listening. We have now moved on to the next question and the substantive answer has already been given. The member should be much more prompt than that. 
Dr Don Brash 
: Can the Prime Minister tell the House why when the Government accounts showed a surplus of almost $7.5 billion last year and are headed for a similar surplus this year her Minister of Finance is using speeches to argue against the prospect of relief for New Zealand taxpayers? 
Rt Hon HELEN CLARK 
: The member well knows that that is not a cash surplus. The member also well knows that this Government runs strong Budgets not the sort of voodoo economics borrow and hope and tax slashing that the National Party stands for. 
Peter Brown 
: How does the Prime Minister justify such a huge surplus and still want to increase tax on petrol by 5c come next April? 
Rt Hon HELEN CLARK 
: The increases in petrol tax of course are designed to go to land transport provision which is very important at this time. 
Rodney Hide 
: Has she received any reports on what tax rate cuts should be given priority if there were to be any tax cuts; if not why not? 
Rt Hon HELEN CLARK 
: No and nor do I intend to start writing the Budget during question time today. 
Gordon Copeland 
: Does the Prime Minister recall signing off in 1999 a commitment that there would be no rise in income tax for the 95 percent of taxpayers earning under $60000 a year; if so will she ensure that that commitment is fulfilled by adjusting the income tax bands for inflation from $9500 to $10750 from $38000 to $43000 and from $60000 to $68000? 
Rt Hon HELEN CLARK 
: Yes and no. 
Dr Don Brash 
: If a $7.5 billion surplus is not enough to justify substantial tax relief can the Prime Minister tell the House just how big a surplus her Government would need to run before New Zealand taxpayers could look forward to some tax relief? 
Rt Hon HELEN CLARK 
: It is a matter of record that this year’s Budget provides very substantial targeted relief for 300000 working families—the priority of this Government. 
Gordon Copeland 
: Would the Prime Minister’s answer of “no” to the second part of my earlier question be changed if she was aware that in this House just a few weeks ago her Minister of Finance confirmed that if the tax brackets are not adjusted for inflation tax is in fact being increased in real terms—which would be a breach of her 1999 commitment? 
Rt Hon HELEN CLARK 
: The short answer to the second part of that question is that no it would not. But I point out to the member that tax cuts equal spending. When a Budget is drawn up one works out what is the best area to spend in. This year’s Budget which has implications for the next 2 years as well clearly made the priority New Zealand’s 300000 hard-working families with children. They are our priority. 
Dr Don Brash 
: Can the Prime Minister recall suggesting that her Government would run a Budget surplus of 1 percent of GDP and how then does she justify the surplus now approaching 5 percent of GDP? 
Rt Hon HELEN CLARK 
: By the magnificent economic stewardship of this Government. 
Gordon Copeland 
: I seek the leave of the House to table the Prime Minister’s 1999 commitment stating that there would be no tax increases for those earning under $60000. 
Document by leave laid on the Table of the House. 
Hon Richard Prebble 
: Is the Prime Minister willing to comment on the widely held belief that she is encouraging her coalition allies the Progressives and United Future to call for tax cuts as this Government realises that it is simply not credible to ask for re-election with a surplus of $7.5 billion; and that there will be tax cuts next year—something that we all know is coming? 
Rt Hon HELEN CLARK 
: Of course I am willing to comment in response to the member’s question. The suggestion that other support parties have been lined up to make certain suggestions has no substance.