A top Australian politician has waded into New Zealand's most
sensitive area of political debate - tax cuts.
Treasurer Peter Costello says skilled Kiwi workers should cross
the Tasman for lower taxes; intervening in the war of words being
waged between Labour and National.
National Party leader Don Brash launched the latest weapon in the war of words over tax cuts on Friday. Billboards are coming to a city near you, not so tax cuts, which Cullen couldn't find room for in Thursday's budget.
The government has a surplus of $8.5 billion. But the economy is cooling and the finance minister says its wiser to invest any new money in roads, health and education rather than just hand cash back to taxpayers.
"That surplus is this year. The budget is about next year and the year after, and you can't exactly have a tax cut and then take it back the following year because the fiscal position has changed," says Cullen.
The opposition says New Zealanders will head in droves to Australia to take advantage of its $45 billion in tax cuts.
"Helen Clark and Michael Cullen want your grandchildren to be cheering for the wallabies," Brash said on Thursday.
The prime minister however fired back with some of her own political point scoring.
"Someone who goes around running their country down all the time comparing it adversely with others isn't going to touch the hearts of our people," she said.
But the Australian Treasurer seems to agree with Dr Brash.
"If there are Kiwis who have skills and want to come to Australia as skilled migrants, of course they are welcome. And if they play rugby union than they're doubly welcome," says Costello.
Clark downplayed the comments, saying they were pretty light-hearted and represented the friendly rivalry between the countries.
But some of those listening to post-budget speeches are also
worried.
"I think people would look at going to Australia to take advantage
of a better economy," said one.
The government says there may be no tax cuts, but it is delivering billions of dollars of tax relief to working families and that's something worth staying here for.
