Clark Defends Government Stance On Tax Cuts

by Carla Johnson, Investors Offshore.com, London

26 October 2007

New Zealand's Prime Minister on Wednesday answered key questions from the opposition regarding the affordability of proposed tax cuts.

Prime Minister, Helen Clark, defended her party's position on tax cuts, undergoing a tough round of questioning from leaders of the opposition - including questions on whether she thought the economy would eventually suffer due to her decision to cut taxes.

She highlighted several areas in which she felt that the government is currently succeeding, despite opinion to the contrary, stating that:

"This Government has delivered billions of dollars of tax cuts to families, to businesses, and to savers, and every single one of those cuts was voted against by National."

She continued:

"The National Party went to the last election with a tax cut policy funded by borrowing, asset sales, and cuts in spending. That was a bargain the public chose to see right through. "the public refused to vote at the last election for a party that promised inflationary tax cuts that would have put up every mortgage, would have cut services, would have involved borrowing, and would have meant asset sales. That has always been the National Party approach."

Earlier this month, research undertaken on behalf of the New Zealand Business Council for Sustainable Development, showed that whilst nearly eight out of every 10 New Zealanders (76%) want a personal tax cut, more than half would oppose tax cuts if they meant reductions in spending on health, education or welfare.

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