Taxman Takes All and Gives To Some!!

$7 billion is a big surplus! It's obvious Finance Minister, Michael Cullen has been sitting on the growing surplus waiting for the pre election year!  It is a cynical budget, as many of the promises will only be delivered if Labour is re-elected!!

While, for some, the handouts look good on the surface, they are just a redistribution of your money, which you've been paying in taxes, that until now, has been sitting in the Government��s coffers.

They are going to spend an extra fourteen billion dollars in the next three years.  So, where does this phenomenal amount of money come from??

Since taking office, Labour has introduced 15 new taxes including putting up the personal top tax rate.  That is a tax of $1.5 billion per year, and only $220 million of that is going to be distributed this year in the Future Directions package!

This multi-billion dollar surplus can also be put down to the Labour government inheriting a buoyant economy - that was confirmed in a recent Treasury paper that points to reforms during the 80��s and 90��s for the economy��s success.

Another reason for the healthy economy is the recent rise in migrants, international students and a low exchange rate -those reasons have been stimulating our economy, but that is changing.

The most obvious solution to help all hardworking New Zealanders, is to leave the money in their pockets with a direct tax cut.  A drop in tax will also encourage people to earn more without the fear of paying more.

A thriving entrepreneur culture is vital for New Zealand to maintain world-class living standards.  Business sectors want to see money spent on finding solutions to resolve traffic problems, finding reliable energy supplies and reducing red tape - they also want fewer Government charges, and a company tax rate the same as Australia.

Budget 2004 is a missed opportunity for New Zealand! The healthy surplus could be used to reward hard work, drive economic growth and ensure a safe community.

Instead Labour reverts to the predictable move of buying votes in the form of income re-distribution. Kiwi families are being enticed to welfare dependence and handouts.

Labour had abandoned their own pledge of higher economic growth by mid 2004. 

National would have used this golden opportunity to provide tax relief for all hardworking New Zealanders, and cut wasteful Government spending (instead of increasing it!).  We would also reform the Welfare System, that in its current form is costing the country $1 million dollars an hour, and reform the education sector and remove barriers to economic growth. 

Roading Now for Auckland

As I discussed in my last newsletter, the sound of the V8 cars in the city centre's probably not music to many Aucklanders' ears - especially since the city being announced as the preferred venue.

I think many feel this way about the event because all they can see is traffic gridlock without any solutions!

It��s time for leadership and clear direction in resolving the city's traffic congestion.

National Leader, Don Brash, has made the commitment that within ten years of election to Government; the Auckland roading network will be completed.

That promise is a big commitment - we will complete the work with a three-pronged approach that will streamline processes, provide a flexible funding base, and remove legal barriers.

There are more than fourteen organisations including the Local Councils that have a role in deciding transport solutions for the city.   No progress can be made when there is such a diversity of agencies involved. National will establish a single agency "Transport Auckland" which will manage all aspects of transport.

To fund the estimated $7 billion dollars it will cost to do the work, National will provide a flexible funding system.  The current funding methods of rates, excise tax and road user charges are limiting, tolls and congestion pricing should be introduced to manage traffic flows. The latter will encourage users to stay away from peak times and encourage the use of public transport and encourage private investment in building roads.

National will amend both The Resource Management Act and The Land transport Management.  This will speed up the process of getting roads built to ensure construction would begin on major roads within a year.

Enclosed is the full text of our leader Don Brash from his speech "Roading now for Auckland". I am looking forward to hearing from you.

Email:      pansy.wong@national.org.nz

Places to Eat, Meet and Treat

Thank you for all the suggestions on where I can sample some of Auckland��s finest food and coffee.

GPK on Ponsonby Road is well established and always has ambience.  I have to say I was tempted (and enjoyed!!)  a slice of the country pizza and one of their delightful coffees.

It certainly restored my energy after another workout on the Squash court

Keep your suggestions coming!