Goff won't commit to overturn GST rise

Labour leader Phil Goff has launched a stinging attack on the proposed increase in GST, but has been unable to give a commitment that he would reverse it if he became Prime Minister.

Mr Goff received a standing ovation after addressing the Grey Power annual general meeting yesterday, telling them the elderly and most vulnerable would suffer if the Government raised GST from 12.5 to 15 per cent.

Pushing the line that the Government's tax changes would "benefit the few, not the many", Mr Goff said the Government's promise that taxpayers would be compensated for any increase in GST did not stack up.

"You are going to get a one-off compensation for GST in advance. But what you know is that might barely meet the cost of GST, but then it will run out. And in a couple of years' time, there won't be the compensation, but there will still be the GST."

A Grey Power delegate rose to his feet, saying he loved what Mr Goff had to say, but asked if it meant that he would be reversing the GST increase if he was elected to Government.

Mr Goff replied: "I know the answer you want to hear to that. But I'm going to give you an honest answer: I can't tell you at this point.

"If I was to promise you I could do that, without knowing whether we will have the financial means to be able to do that, I would be misleading and I won't do that," he said.

On home help being cut to the elderly - another hot issue for Grey Power - Mr Goff was more definitive, pledging to restore the hours lost, if elected to government.