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Home / New Zealand

Union asks how tax cuts to be funded

Herald online
25 May, 2008 11:53 PM2 mins to read

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KEY POINTS:

The Public Service Union is calling on political parties to explain how they will pay for tax cuts.

The union has sent out a questionnaire to political parties and will publish their answers.

PSA national secretary Brenda Pilott said the debate around tax cuts had been one-sided.

"The
maths are clear. To pay for large tax cuts, money either needs to be borrowed or cut from public services," Ms Pilott said.

So far Labour has promised a tax cut of between $11.92 and $28.08 a week from October 1. That figure will rise to between $21.73 and $55.19 in 2011.

National leader John Key has said that is "far too little, far too late" but has so far not named figures, while New Zealand First's leader Winston Peters has called for a tax-free threshold for up to $5200 and GST to be reduced to 10 per cent over three years.

"The PSA thinks New Zealanders who want strong public services deserve a more rounded debate. Because paying for big tax cuts isn't free and New Zealand can't afford weaker public services," Ms Pilott said.

Questions for Politicians

1. What benefits to New Zealand does your party see in having strong public services?

2. Recently, independent studies such as PriceWaterhouseCoopers' analysis of the ACC and an SSC survey of New Zealanders' views about public services show high levels of efficiency and satisfaction. Does your party agree with these findings?

3. In other developed economies, large tax cuts have gone hand-in-hand with significant cuts to public services. Does your party think this is likely in New Zealand, too? Or can taxes be cut without cutting public services or large-scale privatisation?

4. Already, we've heard promises to cut expenditure in the public sector by at least $500 million a year, and plans for large cuts to income tax or GST. What impact, if any, does your party see on public sector services and jobs from these promises?

5. Does your party believe the current level of remuneration in the public sector is too high, about right, or too low? Please elaborate.

6. As you may know, the PSA engages with the State Services Commission and government to involve workers in decisions affecting their workplace (Partnership for Quality). Is your party supportive of involving workers and their union in decisions?

- NZHERALD STAFF

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