Party Finance Spokespersons
The questions are:
1) Will you lower the company tax rate and/or personal tax rates? If so, when?
2) Will you set a cap on core Government spending as a percentage of GDP? If so, what would that cap be?
3) Will you commit to reducing the regulatory burden on businesses by ensuring new and existing legislation is subject to a Regulatory Responsibility Act?
4) Will you commit to work towards free trade agreements, and on what basis?
Answers below:
Michael Cullen, Labour
1) No we prefer to target relief at families
2) No the Public Finance Act allows transparent accountability
3) No, already required by Cabinet
4) Yes on basis of what is good for NZ
Key is how to drive stronger productivity growth. Need to improve skills. Get polytechnics back to technical focus. Will invest in roading. Increase savings. Also Doha round and trade deals.
John Key, National
1) Yes. Company rate from 1 April 2008 to 30c. Maybe April 2007 is fiscal conditions are good. Critical to align with Australia.
2) Not a firm cap but would like to see expenditure stay at 30% to 31% of GDP as it is today.
3) Support investigating these proposals. Some work done to date.
4) Yes. Support trade as strongest way to move economy forward.
Need to improve literacy and numeracy in schools. Refocus tertiary away from low quality courses. Reform RMA. Invest in Infrastructure.
Winston Peters, NZ First
1) Will begin lowering corporate tax rate to 30% next year. Remove GST from petrol. Full tax package next Friday – export incentives.
2) A cap of 30% is achievable.
3) Yes
4) NZ has done globalisation badly. We moved too quickly and sold too many assets. FTAs with low wage economies will sacrifice worker’s jobs.
Rod Donald, Greens
1) Shift tax to polluting activities. Make 1st $5K of income tax free. More taxes on petrol, chemicals and landfills.
2) No cap on spending. Issue is quality not quantity so reject arbitrary cap.
3) Want less regulation (yeah right) but not support legislation. Concerned too many regulations are policy focused, not just implemented agreed policy.
4) Not anti trade. Used to be an importer. Sceptical of free trade agreements and Labour’s strategy is badly flawed. Need strong manufacturing capacity and we should protect them.
Rodney Hide, ACT
1) Yes absolutely. Endorse National’s plan but do company tax quicker and make top personal rate same as company rate. Make then 25% and fund through Cullen Fund.
2) Cap spending not as % of GDP but per capita.
3) Yes Act already drafted for John Key to pass
4) Yes on basis they are as free as possible.
Businesses and NZers need tax breaks. Peters will not support them, so need ACT to help National implement them. Priorities are security and infrastructure. Govt is too busy playing being a businessman. Wealth is not created by committees, bureaucrats or politicians. Best thing Govt can do is provide conditions for private enterprise to flourish.
Gordon Copeland, United Future
1) Tax Cuts for every taxpayer and every business, charity, property owner. Company rate to 30%. Tax free holiday for new businesses. Review tax of R&D. 1st $3K income is tax free. Increase top two brackets by $5K each. Income splitting for couples with children. Retain Working for Families. Contrasts his approach to National’s. Remove GST on rates. Increase 1000% charitable tax deductions. Against carbon tax. Cost $2.5b a year when implemented.
2) No policy to do that. Are outcome focused.
3) Happy to explore.
4) Supports free and fair trade through WTO.
50% of Caucus have run businesses. Know several will move to Australia if a Lab/Green government. Also many not keen on Nat/NZF, and United is alternative.