16 December 2004
Judith Collins National Party Health Spokeswoman -
Pork barrel politics - not health
The Labour Government has abandoned all fiscal credibility in its latest plan to buy votes in Otago.
Government backbencher David Parker has leaked a secret scheme to save a Waitaki District Council company from paying
tax on its income, and about $1.6 million in tax on a Government suspensory loan.
Finance Minister Michael Cullen has agreed to introduce a tax exemption because the Otago District Health Board is not
providing the health care provided.
"On that basis, Wakefield Hospital, Ascot Mercy and every other private hospital would be getting tax-free income and
Government suspensory loans for the public work they undertake," Ms Collins says.
"The fact that it is Mr Parker, the local MP, who has announced this massive departure in tax policy, rather than the
Minister of Finance or the Minister of Health, shows this really is just pork barrel politics.
"I suspect every other local council around the country will now see themselves as healthcare providers, too."
ENDS