Cullen works at winning look for tax
Finance Minister Michael Cullen has confirmed the general shape of tax cuts will be debated today but final decisions on their size will wait till closer to the Budget, which is on May 22.
He hinted at a top-up to the flagship Working for Families scheme, saying that was likely to be on Labour%26#39;s fourth-term agenda as the value was eroded over time.
But he made it clear that the priority for now was tax cuts.
%26quot;For those who%26#39;ve got family responsibilities and maybe a big mortgage, then Working for Families is particularly important, but of course there are many people out there who aren%26#39;t in that position; singles or couples without children who feel in effect they need some recognition and that can only be done for them [through tax cuts].%26quot;
Labour wrapped up its election-year congress in Wellington yesterday knowing that getting its tax cuts right will be crucial to its chances as it seeks to win a fourth term.
It was nearly swept out of office in 2005 by a backlash against its %26quot;chewing gum%26quot; tax cuts, which delivered between 67c and $10 a week.
Since then, rising mortgage rates and spiralling food and petrol prices have placed a squeeze on household budgets, and surveys show consumer and business confidence has plummeted.
Yesterday Dr Cullen told 600 or so Labour delegates at Wellington town hall that winning a fourth term was a %26quot;big ask%26quot;.
%26quot;No one has done this since 1969 and then it was in part an accident of circumstances. No Labour government has done this since 1946, when nearly all of our candidates at this year%26#39;s election were not yet born.%26quot;
That was also the message from Labour Party president Mike Williams, who said Labour faced %26quot;the toughest of elections%26quot;.
The congress was marked by boisterous protests on several issues on Saturday, including last year%26#39;s anti-terror raids in the Ureweras. At one point, Dr Cullen was jostled as he led an elderly woman out of the town hall when a fire alarm sounded.
