Jones Shane: Questions for Oral Answer — Questions to Ministers 
Jones Shane: Questions for Oral Answer — Questions to Ministers 
[Volume:637;Page:7873] 
2.  
SHANE JONES (Labour) 
 to the  
Minister of Finance 
: What reports has he received on the advisability of extensive tax cuts in the current macroeconomic climate? 
Hon Dr MICHAEL CULLEN (Minister of Finance) 
: 
 The excellence of the member’s questions continues to amaze! I have seen a report that states that right “now is not the time to be giving extensive tax cuts.” That report which is broadly in keeping with the recommendations of the Reserve Bank of New Zealand is from Mr Bill English and mirrors his previous indications on this matter. 
Shane Jones 
: Has he seen any reports indicating an alternative assessment of the macroeconomic climate? 
Hon Dr MICHAEL CULLEN 
: Not surprisingly yes because some people have two opinions on every subject. I have seen a report that suggests a policy of at least $7 billion of personal tax cuts over 3 years is appropriate which was just the week previously from Mr John Key’s statement. It would seem that Mr English pays about the same amount of attention to his leader’s statements on tax policy as he does on his statements on meeting the Exclusive Brethren. 
Hon Bill English 
: Does the Minister of Finance agree with the Reserve Bank of New Zealand’s assessment of his plans for very large spending in the run-up to the election that the likelihood is that the $7 billion he plans to spend will rise as Labour starts to bid for votes and that those plans are keeping interest rates up higher for longer for every New Zealand household? 
Hon Dr MICHAEL CULLEN 
: I am glad the member mentioned that $7 billion because he includes in that in the next 18 months $2 billion of business tax cuts. If he cares to think about it he will realise the next 18 months takes us through to September 2008. A billion-a-year business tax package starting in April 2008 is not $2 billion in that period of time but is approximately half a billion dollars. 
Shane Jones 
: What reports has he seen on the impact of business tax cuts of the type foreshadowed in the business tax review? 
Hon Dr MICHAEL CULLEN 
: I have seen a report from the Reserve Bank of New Zealand indicating that those changes should increase business investment and in the long term increase the sustainable levels of production. I have also seen a report describing them as wasteful spending that should be cut. That comment came from Mr English who now seems to be suggesting that National is opposed to reducing the taxes on business. 
Rt Hon Winston Peters 
: Can I ask the Minister whether he has seen other reports and one report dated 29 November 2006 that stated: “As we have made clear many times National’s policy on tax has been and remains to reduce personal and company taxes across the board.” and how does he reconcile that with last week’s quote—not by Mr John Key but this time by Bill English: “now is not the time to be giving extensive tax cuts.”— 
Hon Bill English 
: Easily. 
Rt Hon Winston Peters 
: —I have not finished—which of those reports does he intend to follow? 
Hon Dr MICHAEL CULLEN 
: To quote Mr English I can reconcile those two comments easily because they were made by the co-leaders of the National Party and therefore by definition are likely to contradict each other. 
Rodney Hide 
: Has the Minister seen any reports of a political party that has always advocated extensive tax cuts whatever the macroeconomic conditions its own electoral fortunes and the fads and fashions of politics—and indeed irrespective of floods and volcanoes? 
Hon Dr MICHAEL CULLEN 
: Yes I have. I have noted that both the size of the caucus and the size of its leader are shrinking at approximately the same rate.