Goff Phil: Questions for Oral Answer — Questions to Ministers 
Goff Phil: Questions for Oral Answer — Questions to Ministers 
[Volume:653;Page:2695] 
1. Hon PHIL GOFF (Leader of the Opposition) 
 to the  
Prime Minister 
: Does he agree with the statements in the House by his Minister of Finance on 16 December 2008 that “Yes I can confirm that National will not be going back on any of those promises as we fully costed and funded them”? 
Hon JOHN KEY (Prime Minister) 
: 
 Yes I agree with the statement the Minister of Finance made at that time. Since then as the member is well aware New Zealand’s economic and fiscal position has deteriorated significantly. The Government has been up front in saying that in light of the deepening global recession we will proceed with tax cuts in 2010 or 2011 only if they are affordable. If they are not affordable we will defer them. 
Hon Phil Goff 
: Is the Prime Minister therefore confirming to the House that on the central promise on which he was elected which was tax cuts he is now going to renege by not proceeding with the tax cuts on 1 April 2010 and 1 April 2011—yes or no? 
Hon JOHN KEY 
: No I am not confirming that. What I am confirming is that it did not take this Government 9 years to cut taxes like it did the Labour Government. 
Hon Phil Goff 
: What is the value of the Prime Minister’s personal guarantee set out on this document that he has signed where he personally pledged tax cuts on 1 April 2010 and 2011? 
Hon JOHN KEY 
: A very high value. But the other thing I would say of course is that New Zealanders recognise that around the world the situation has changed dramatically in the last 5 or 6 months. New Zealanders are aware that the Government is likely to earn $50 billion less in revenue in the next 3 years. The one thing I would say is that members on this side of the House understand what we are doing. Members on that side of the House were telling us to cancel the tax cuts. 
Hon Phil Goff 
: I raise a point of order Mr Speaker. You have seen this day after day and you know there is a Speaker’s ruling regarding conduct that is likely to lead to disorder. The Prime Minister’s comments at the end of his answer had nothing to do with the question that was asked. I ask you to bring him to order before the House comes to disorder. 
Mr SPEAKER 
: The honourable Leader of the Opposition has made a fair point. I urge the Prime Minister to limit that kind of comment if possible. 
Nathan Guy 
: Has the Government delivered on its promises? 
Hon JOHN KEY 
: I am aware that the Hon Dr Michael Cullen is giving his valedictory speech at 5.30 so I will try to condense this so as to keep within that timetable. Yes we delivered a billion dollars’ worth of tax cuts on 1 April this year we have introduced the ReStart package we have introduced legislation to address law and order issues we have set national standards in literacy and numeracy we have fast tracked the funding of PlunketLine we have ensured that women receive a 12-month course of Herceptin—I could go on. 
Hon Phil Goff 
: Does the Prime Minister now regret promising $4 billion more in tax cuts than the Labour Party at a time when he knew full well that the world was in serious recession but made those promises in order to get elected anyway and was that not simply dishonest? 
Hon JOHN KEY 
: No I do not regret that. I will make just one simple point because it might help the Leader of the Opposition: the tax cut programme that National went into the election with in 2008 cost $250 million less than the one promised by the Labour Party. 
Hon Sir Roger Douglas 
: How can the Prime Minister still talk about implementing more Government spending in line with his election promises of 9 months ago when the pace of economic deterioration means that the ideas mooted 9 months ago are both irresponsible and unaffordable? 
Hon JOHN KEY 
: No I would not agree with that statement. The Government is honouring its commitments. It is making sure that it is putting money into health and education. It is making sure that it is committed to and follows through with all of the promises from the 100-day programme. What is true is that the Government is taking matters seriously in terms of trying to save money. Our line-by-line review has been successful and when people see the Budget they will realise that we are taking the fiscal position going forward seriously as well. 
Hon Phil Goff 
: Was yet another promise broken by the Prime Minister when he said to the New Zealand Public Service that it would be capped but that it would not have its numbers cut and what is his explanation now to the more than 880 decent ordinary hard-working public servants who have already been sacked? 
Hon JOHN KEY 
: No and the only person who is going to be cut around here is the Leader of the Opposition. [ 
Interruption 
] 
Mr SPEAKER 
: I have called Nathan Guy. 
Nathan Guy 
: Has the Prime Minister seen reports of a Minister of Finance not merely deferring but in fact cancelling tax cuts? 
Hon JOHN KEY 
: Yes I have seen a report of a Minister of Finance announcing personal income tax cuts in the 2005 Budget but then cancelling them outright in 2007. When the Government was posting an $8 billion surplus he said that he did not want to go through with tax cuts because people would just spend the additional money anyway. 
Hon Phil Goff 
: When the Prime Minister promised the country that he was not going to touch superannuation entitlements did he also explain that he was going to cease pre-funding those entitlements so that inevitably his policy would lead to a crisis and a breach of those entitlements just a few years down the track? 
Hon JOHN KEY 
: The economic understanding of the Leader of the Opposition is quite woeful if he thinks that a minor deferment in payments into the Superannuation Fund—if that was to happen—would cause a crisis in the superannuation system in New Zealand. 
Hon Sir Roger Douglas 
: Could the Prime Minister please explain to the House how it is possible in today’s economic circumstances to spend more this year than Labour did last year especially when households are having to spend less? 
Hon JOHN KEY 
: That is because we are putting more money into things that we think are very important. I think if members were to look around the— 
Hon Member 
: Like what? 
Hon JOHN KEY 
: Well $750 million into health and hundreds of millions of dollars more in other areas. The reason for that is that we are taking the approach that most westernised countries are taking which is that this is a time when Governments should use their balance sheet but we are not going to diet on debt forever. 
Hon Phil Goff 
: Why did the Prime Minister not consult in any meaningful way with Aucklanders as he had promised to do in his manifesto before jointly with Mr Hide determining and announcing what was best for them when clearly Aucklanders have rejected what he is trying to ram through and impose on them? 
Hon JOHN KEY 
: They are not rejecting what we are proposing for Auckland. 
Hon Phil Goff 
: Can the Prime Minister as a result of all the answers he has just given the House confirm that the personal guarantee he wrote and the promise the Minister of Finance made in the House on 16 December both count for nothing because he has confirmed today that he has already broken not just one but three or four of his major promises—he has not met his undertakings to the people of New Zealand? 
Hon JOHN KEY 
: I can promise New Zealanders that this Government will show good economic leadership and that we will make sure that New Zealand comes through this recession. We are not a fair-weather Government that knows how to operate only under surpluses—that is for sure.