Taxation debate declined

Press, 10 April 1981, Page 4

Taxation debate declined

‘“PA Wellington The Deputy Minister of H! Finance (Mr Templeton) is U not. prepared .to debate,, the taxation issue" publicly with jTithe Labour member of Parfor Auckland CenS'tral (Mr R. W. Prebble).

IX “I have no intention of 1- appearing on television or f”: any other media with a man who cannot get his facts fright, who has no hackfl ground in or knowledge of [X, taxation, and who is making wide-ranging assertions that iZare undermining people’s !.*■ confidence in the tax sysi" tern,” Mr Templeton said yesterday, p Mr Prebble, with the i* Leader of the Opposition '*■ (Mr Rowling) has criticised (“the “burden” of taxation 2 which they say the average taxpayer bears, and Mr - Prebble has predicted a Bud-

get cut in tax for average wage-earners;. ... from 48c in the dollar tb??3sd;— a measure he says? will probably come into force in October.

Mr Templeton" said’7 that these were "wild” claims, and invited Mr Prebble to make public a Labour Party Budget, detailing what tax cuts the Opposition would make and where it would draw the’ revenue from which to finance the cuts. Mr Prebble had been “blown out” on accusations about export incentives for Alliance Textiles and on claims about an Auckland company which had found a means of exploiting export incentives, Mr Templeton said. . "As far as I can see, he hasn’t been able to make one single accurate assertion. There is no basis for debate,” he said.

However, Mr Templeton said that he would be' pre : pared to> debate the issue with Mr l|owling on? television ‘‘if television wanted this.” -T “T He said that the Government accepted that taxation would be one of the main election issues. "The Government has said that the first priority is to limit and lower personal taxes, but there are limits to that because we are running a big government deficit,” Mr Templeton said; “What Mr Rowling and Mr Prebble are not saying is where they would cut Gov? ernment expenditure,, and what the people have to understand — and what the Government is saying — is that we have very big am efficient services t’. at have to be paid for. This is why taxes are high.” '

i The main constraint on - ..taxation relief was the $1.5 i billion deficit, Mr Templeton - said:. • 1 “If Mr Prebble was aware of’ the -'.eicbhomic situation, - where We are now paying 1 roughly $5 billion in personi al tax, $1.5 billion in indirect taxes, and running a 1 deficit of about $1.5 billion, > he would know w.hat the 1 Prime Minister (?'.• Mul- > doon) and I are saying. Be- ; cause we are up against this ’ particular equation all the time there is not a great I deal of room for manoeuvre. ; “What we are saying is that reform of the taxation I system will have to come slowly, because it is depend- : ent on growth in the economy. Our priority is to broaden the base of the economy and to get growth. We can then start reducing taxation,” Mr Templeton said.