Hon Peter Dunne
Minister of Revenue

Tuesday, 25 January 2011
Media Statement

Dunne: Cullen dismissed Goff tax-free idea years ago

Labour leader Phil Goff’s pledge to make the first $5000 of income tax-free was rejected out of hand by Michael Cullen in the last government, Revenue Minister Peter Dunne said today.

“So when did a bad idea become a good idea?” Mr Dunne asked.

“I know what Labour’s thinking on this was as I was Revenue Minister at the time, and part of those discussions and decisions.

“Michael Cullen is on the record as specifically discounting such a threshold as of little benefit to low income earners and far too costly.

“In Dr Cullen’s own words, such a move would have ‘minimal benefit for a very small number of low income earners’.

Mr Dunne said voters would see this for what it is: “a political party down in the polls and grasping for populist straws.

“People see through these kind of flip-flops and hip pocket bribes.

“Michael Cullen – a Labour icon – saw it as bad policy; Phil Goff needs to really explain why it’s now this week’s latest, greatest idea,” Mr Dunne said.

ENDS

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