Transtasman Political Letter – 17 November Digest
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17th November 2005
Treasury says tax cuts across the board are best for growth, leaving Michael Cullen as blue in the face as the Treasury
briefing paper
… Is it a smile we see spreading across John Key’s face?
... Trade issues loom large as the Doha round slips closer to foundering
… Winston starts to find his Foreign Affairs feet at APEC
… but Jeanette Fitzsimons finds voice to berate Labour.
Treasury Drops A Political Blockbuster
The new Govt has been rocked on its heels by Treasury briefing papers calling for tax cuts. The Treasury “believes
reducing rates directly will have the most substantial growth impact.” In papers rated as political dynamite, Treasury
in effect backs the Opposition’s stance on tax cuts, against the Govt view tax cuts would undermine fiscal stability.
Tax Cuts To Promote Economic Growth
The main policy challenge facing the Govt is to enhance productivity, Treasury’s briefing paper (which some authorities
rate as important as the 1984 document to the then incoming Labour Govt.
Fitzsimons Sees Govt As Hostage To Intolerance
The wounds inflicted on the Greens by their erstwhile ally the Labour Party during the formation of the Govt have still
to heal, judging by the sharp attack the normally mild-mannered Jeanette Fitzsimons made on the Govt in the House this
week.
MED Warns Of Tough Times For Business
The Ministry of Economic Development in its briefing to the incoming Govt warns it is tough for exporters at the moment,
it is going to get tougher for other businesses in the next year or two, and there are significant challenges in the
medium term.
CAPITAL TALK
PM Helen Clark’s chances of helping the NZ Rugby Union win hosting rights for the 2011 World Cup may have been
frustrated by the Aussies. Her Qantas flight out of Auckland had to turn back four hours out on Tuesday night because of
a mechanical fault.
Play of the week: Pardies!
Back when Labour was elected in 1999 Michael Cullen observed at his first press conference that officials prepared two
briefing papers for an incoming Govt: “a red one and a blue one.”
Transtasman is a subscriber newsletter published weekly and read widely in New Zealand and abroad. The above is a
summary of this week's edition. To subscribe and read the full newsletter see.. http://Transtasman.co.nz