Robertson H V Ross: Questions for Oral Answer — Questions to Ministers 
Robertson H V Ross: Questions for Oral Answer — Questions to Ministers 
[Volume:648;Page:17451] 
2.  
H V ROSS ROBERTSON (Labour—Manukau East) 
 to the  
Minister of Finance 
: What are the Budget forecasts for cash deficits over the next 4 years and what changes are likely to these forecasts in the Pre-election Economic and Fiscal Update? 
Hon Dr MICHAEL CULLEN (Minister of Finance) 
: 
 The fiscal forecasts presented with the 2008 Budget Economic and Fiscal Update show cash deficits over the next 4 years of around $3.5 billion a year. It is likely that the Pre-election Economic and Fiscal Update will show an increase in these deficits since the end of June tax update which will show that tax receipts for the 2007-08 year were some $700 million below the Budget forecast. 
H V Ross Robertson 
: Can he tell the House what reports he has seen on the importance of these forecasts? 
Hon Dr MICHAEL CULLEN 
: I have seen a report indicating that neither changing economic conditions nor fiscal imperatives should make any difference to plans for major reductions in Government revenue. At a time of considerable international instability when two Australian-owned banks operating in New Zealand have just made major write-downs and when the US Government has just announced the biggest fiscal deficit in America’s history it is extraordinary that somebody should take a short-term money market manipulator’s view of the management of the New Zealand economy. It is no wonder that on TV3 last night when Mr English was trying to deny that borrowing would be required for further tax cuts he lifted his eyes to the heavens and said: “I had better not comment any further.” 
Hon Bill English 
: Why should the New Zealand public believe any statements on economic management from that Minister when he has spent 7 years railing against borrowing at the same time as cutting taxes and then in the 2008 Budget he cut taxes borrowed $6.4 billion and sold $6.4 billion of State assets to finance his cash deficits? 
Hon Dr MICHAEL CULLEN 
: The member may make it up as often as he likes and he always does. Every Budget that I have presented—[ 
Interruption 
] the one thing about this sound system is that the person in control gets heard and the squeaking does not get heard—has shown surpluses turning into deficits over time the economy continuing to outperform and therefore cash surpluses continuing to eventuate. Anybody who believes in the current international and domestic situation that the Budget forecasts will be better at election time than they were at Budget time is living in a dream world. That member knows that the promises being made by his leader up and down the country cannot be met without either further borrowing or without making cuts to State spending—and we know one of the ways that those members will do it. 
H V Ross Robertson 
: Can the Minister therefore tell the House what further reports he has received on fiscal management? 
Hon Dr MICHAEL CULLEN 
: I have seen an even further extraordinary report that commits to keeping the entire Working for Families package and goes on to suggest that this should have no impact on the affordability of tax cuts of $50 a week over and above the $10.6 billion of tax cuts announced in Budget 2008. This report from Mr Key who previously described Working for Families as “communism by stealth”—[ 
Interruption 
] Oh it was actually communism by stealth he says. He says that it was communism by stealth but if a National Government did it then presumably it would be capitalism by stealth. If it was communism by stealth and if it was a costly welfare monster it shows in fact that the National Party faces three choices: to have a promise of much larger tax cuts it either has to cut services borrow more or flip-flop yet again. If one can change one’s mind on every promise one has made in the last 2 or 3 years then why would one not change one’s mind on the promises one makes before an election once the change happens? Remember what the member’s motto is as revealed in the  
New Zealand Herald 
: “whatever it takes”—whatever it takes. 
Hon Bill English 
: I seek leave to table the 2008 Budget which contradicts Dr Cullen and shows he did borrow— 
Madam SPEAKER 
: Leave is sought to table that document. Is there any objection? Yes there is.