Labour is going soft on the recommendations of the Finance and Expenditure Committee (FEC) regarding the powers and operations of the IRD, according to United New Zealand leader, Hon Peter Dunne.

Mr Dunne who chaired the FEC inquiry last year, says that at the time the FEC report was tabled, Labour’s Revenue Spokesperson, Mark Peck, made clear his party’s support for the report recommendations.

“However since becoming the Government, Labour’s action has been extraordinarily slow.

“Papers tabled at the FEC today show the Government is awaiting recommendations from IRD on the report’s findings in the latter part of 2000 and early 2001,” says Mr Dunne.

He says this slow timetable makes a mockery of Mr Peck’s commitment and shows that the new Government has been clearly captured by the IRD.

“I am now less confident that the FEC report will lead to significant changes in IRD, because of the slowness of the government’s response.

“Labour seems more interested in devising new taxes than making the existing system work for the benefit of most taxpayers,” he says.

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