Jenny Shipley Leader of the Opposition
28 March 2001
Cullen trying to rip off farmers through Capital Gains Tax
There is no way National will support Michael Cullen's capital gains tax on Taranaki and West Coast leaseholders,
Opposition Leader Jenny Shipley said today.
Dr Cullen is proposing a legislative change which would impose taxes on any compensation payments awarded to the 170
leaseholders of Maori reserve land who opted for their cases to be considered by the Land Valuation Tribunal.
"Those leaseholders took a risk when they opted to pursue their cases through the tribunal. Their understanding in
taking this option was that this was a capital gain issue. At the time they made that choice they could have been
winners or losers, depending on land valuations.
"Now, three years later and just days before those leaseholders have their day in court, Dr Cullen is trying to change
the rules. That's a reprehensible attempt to impose retrospective legislation.
"This Government promised 'no new taxes', yet here we are less than half-way through their term and they are poised to
introduce a version of one of the most economically destructive taxes of all - capital gains tax. We will vigorously
oppose this. Dr Cullen's capital gains tax will send a shiver down the spine of business in New Zealand.
"Dr Cullen's last minute law change is a money grab. In a desperate scramble to balance his Budget he sees farmers as an
easy target. But those farmers have played by the rules, and Dr Cullen must too. He must not be allowed to rip those
farmers off," Jenny Shipley said.
Ends