Cullen playing politics over petrol tax

The Finance Minister is playing politics with his indication today that the Government may delay the planned rise in fuel tax, says National’s Finance spokesman, John Key.

“When the Government announced the proposal last year I pointed out the folly of yet another tax increase when what was required to get roading under way was removal of the blockages to the planning process. They have done nothing, and the result will be long delays and spiraling costs, with all drivers picking up the tab.

“Now that an election is on the horizon, and with world oil prices high, we have to hope the Government is finally becoming aware of the folly of continually relying on tax increases to solve every problem.

“The Finance Minister doesn’t want to fight the election on the bad news of a petrol tax increase on top of current high petrol prices.

“Given that he has already let home owners know that further substantial rises in mortgage rates are on the way, perhaps he is trying to send a signal to the Reserve Bank”, Mr Key says.

“But the Reserve Bank would not be influenced at all by the political tinkering associated with a temporary delay in yet another of Labour's new taxes.

“Under Labour, New Zealand motorists will end up paying this tax, whether it happens in April or at a more politically convenient time a little later in the year”.

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