Wednesday, 19th September 2007

Does ideology govern Finance Minister's thinking?

Independent MP Gordon Copeland today quizzed the Minister of Finance, Dr Michael Cullen, in the House concerning his "100% state ownership at any cost" attitude to State Owned Enterprises (SOEs).

"The Minister claims that meaningful tax cuts would lead, amongst other things, to a cut in infrastructural investment," said Mr Copeland.

"Accordingly I asked him why he does not look at orthodox alternative ways of funding that investment. In particular I suggested that he could sell down a minority stake in SOEs to Kiwis, thus simultaneously building a ownership society, reducing tax, and growing infrastructure - a win/win/win for New Zealanders."

"His answer to my question only heightened my concern that he does not understand infrastructural financing possibilities. He claimed that infrastructural investment represents current consumption and could therefore not be funded by selling some of the Crown's assets."

"I would have thought it patently obvious that building new highways, new schools, or new hospitals, represents not consumption but rather long term and important investment in New Zealand's future."

"The reality is that the Crown has a triple A rated balance sheet and the Minister has a wide range of financing options available to him."

ENDS

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