5. Question No. 5—FinanceNICOLA WILLIS (Deputy Leader—National) to the Minister of FinanceQuestion No. 5—Finance5. NICOLA WILLIS (Deputy Leader—National) to the Minister of Finance: What advice if any has he had about the impact a new asset tax such as for example a wealth tax would have on the New Zealand economy particularly in light of economic recession and the cost of living crisis? Hon GRANT ROBERTSON (Minister of Finance): The Government as all Governments do seeks and receives a range of policy advice on New Zealand's current tax settings. For example we received advice on various new taxes such as a wealth tax from the Tax Working Group. The Tax Working Group produced an entire second volume of its final report on the taxing of the gains of assets—in particular a capital gains tax. Treasury has regularly provided me and past Ministers of Finance with advice on the merits of asset taxes including a capital gains tax the impacts of which Treasury has said to include improved capital allocation and greater equity in the tax system. The impact of any taxes such as these is very dependent on their design and the subsequent use of the revenue. As previously stated in the House the Government has no plans to introduce any such tax in this parliamentary term.Nicola Willis: Has the Minister sought advice on tax policies recently agreed to by the Labour Party policy council which I'm told recommend income tax reductions funded by a large new asset tax together with a 45c tax rate for incomes $200000 and higher?Hon GRANT ROBERTSON: I'm obviously not responsible inside this House for the Labour Party's policy council but I can provide helpful advice to the member that that's been the position of the Labour Party conferences over many years.Nicola Willis: Well has the Minister of Finance received official advice recently on proposals of that sort and allegedly sought by the New Zealand Labour Party?Hon GRANT ROBERTSON: I reject the connection that the member is making in her question.Nicola Willis: Has the Minister of Finance shared advice prepared as part of the Budget process with the Labour Party?Hon GRANT ROBERTSON: No.Nicola Willis: Does the Minister of Finance think a wealth or asset tax of the sort proposed by the Green Party would be good or bad for the New Zealand economy?Hon GRANT ROBERTSON: As I said in my primary answer the Government has no intention of introducing a tax of that sort this term. Nicola Willis: Does the Minister of Finance agree that in the middle of a recession and cost of living crisis it would be reckless to impose a new asset and top tax on the New Zealand economy sending a wrecking ball through our economy resulting in job losses capital flight and lower growth?Hon GRANT ROBERTSON: What would be reckless is proposing tax cuts at a time at which our public services are under extreme pressure and when the Government's job in part is to help the Reserve Bank with bringing down inflation. That recklessness is the mark of the National Party's policy.Nicola Willis: Would the Minister like to take this opportunity to rule out introducing an asset or wealth tax while he is Minister of Finance or does it remain firmly on the table just after the election?Hon GRANT ROBERTSON: I thank the member for her confidence in the return of the Labour Government and my ongoing role as Minister of Finance. I stand by my previous answer. Nicola Willis: Why does the Minister of Finance think it is reckless to reduce people's personal income tax but it is perfectly responsible to impose an asset or wealth tax on the New Zealand economy when it is particularly fragile in recession and enduring a cost of living crisis?Hon GRANT ROBERTSON: I did not say that. What I said was it was reckless at a time at which public services were under extreme pressure to be looking at across-the-board tax cuts that deliver very little to low-income earners. Rather what I think the responsible approach is is to support people with cost of living increases and invest in our public services. The member will have to explain how she thinks she can do what she wants to do with her policy and properly fund public services—it doesn't add up.