John Key National Party Finance Spokesman

16 February 2005

Corporate tax cuts off the table

National's Finance spokesman, John Key, says business will be disappointed to learn today that corporate tax cuts are still a long way off under Labour, despite the ever-growing surpluses.

He is commenting on statements made to a select committee by Finance Minister Michael Cullen that there would be no corporate tax cuts and next-to-nothing in the way of incentives to encourage home ownership and savings in this year's Budget.

"Dr Cullen, true to form, is intent on telling businesses what is best for them while refusing to reward everyone in the business community.

"His continuing refusal to cut corporate tax will leave Australia with clear blue sky to further lower theirs and increase the gap between our two countries.

"And his comments regarding home ownership and savings once again show that the Prime Minister's words are just words - and New Zealanders will have to wait a long time to see any sign of any real action in this area.

"Anyone hoping for a quick-fix from Labour around issues in the ownership society will be sorely disappointed.

"And all the while Labour continues to rake in and keep massive amounts of our taxes," Mr Key says.

ENDS

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