Prime Minister Chris Hipkins and National leader Christopher Luxon on former Revenue Minister David Parker's decision to step aside less than two weeks a wealth tax proposal was ditched by the Government. Video / Mark Mitchell
David Parker believes it was “untenable” for him to continue as Revenue Minister less than two weeks after Prime Minister Chris Hipkins ruled out introducing a wealth tax or capital gains tax under his leadership.
Alongside announcing who would be taking over Kiri Allan’s portfolios, Hipkins also revealed Parker had requested to conclude his time as Revenue Minister. Hipkins claimed Parker’s reason was to focus on his newly-acquired transport portfolio, which he was given after Michael Wood was demoted.
However, asked this morning whether the real reason was that the tax work was not progressed, Parker said: “Look, you know, my views on those things, I thought it was untenable for me to continue so I suggested to Chris [Hipkins] that it was in the best interests of him and the party that someone else take that role.”
Parker maintained he was still a loyal Labour member and didn’t want to cause any distractions.
“I‘ve tried to do this in a way that makes it as smooth as possible for Chris Hipkins.”
The Labour Party would this weekend be deliberating on list rankings ahead of this year’s election.
Asked whether he was hoping for a high list position, Parker said the list generally reflected the Cabinet ranking. An update of the Cabinet rankings yesterday had Parker at 11th.
He indicated he was still passionate about politics, saying he was an “agent for progressive change”.
“I’ve been that way all of my political life and I still got lots of energy, as shown by the scraps that I’ve got into in the last couple of weeks on transport.”
Parker expressed confidence in his revenue replacement, Internal Affairs Minister and former tax lawyer Barbara Edmonds.
“She used to work at Inland Review some time ago, she will do the job very well.”
Internal Affairs Minister Barbara Edmonds is taking on the revenue portfolio. Photo / Mark Mitchell
Edmonds made a brief comment to media this morning, stating she supported Hipkins’ decision on tax.
Hipkins this morning said he was “well aware” Parker’s views on a wealth tax, but wouldn’t directly answer whether Parker had cited Hipkins’ recent decision in his reasoning for letting go of the revenue portfolio.
“It was actually a very short conversation where he indicated that he was keen to move on from the revenue portfolio,” he said.
“It’s a matter of public record that a wealth tax was considered by the Cabinet and David was the minister responsible for putting together that advice and bringing it to the Cabinet.
“Ministers do that from time to time and that doesn’t mean that the advice always gets accepted and there will be disappointment when a minister puts forward a proposal that the Cabinet doesn’t agree to go ahead with, I think that’s just human.”
He disagreed with suggestions Parker broke Cabinet’s collective responsibility by expressing his disappointment at Hipkins’ decision.
