Scoop has an Ethical Paywall
Licence needed for work use Learn More
Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Key’s random musings ill-informed - Cullen

Key’s random musings ill-informed - Cullen

“John Key’s random musings about the possibility of New Zealand copying the Irish economy show a startling lack of knowledge of the differences between the two economies,” Finance Minister Michael Cullen says.

“First, the Irish economic miracle began with and has been sustained by a tripartite deal between government, the union movement and business. That requires a highly centralised wage bargaining process with strong unions; a possibility National destroyed with the Employment Contracts Act.

“Second, Ireland has received over the last 20 years tens of billions of dollars in subsidies from the European Union. Nobody subsidises us.

“Third, Ireland taxes dividends twice. So the low company tax rate for Irish investors is overwhelmed by being taxed again on top of that at the personal rate. In New Zealand the company tax paid is offset against personal tax, leading to one of the lowest taxes in dividends in the developed world.

“As for Mr Key’s silly notion that foreign owned companies should pay less tax than New Zealand ones, perhaps he might justify why the Australian owned banks should pay a lower tax rate than the Taranaki Savings bank, Kiwibank and the Southland Building Society,” Dr Cullen said.

Advertisement - scroll to continue reading

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 
 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured News Channels


 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.