Chris Hipkins says Damien O'Connor should've used 'different form of words' on tax

  • 08/08/2023

Chris Hipkins says one of his senior MPs should've used "a slightly different form of words" when talking about tax.

On Sunday, West Coast-Tasman MP Damien O'Connor said "we probably don't have enough tax in this country". 

He made the comments at a Red Meat Sector Conference debate, during which he said "we are going to have to contribute more" if the economy was to operate the same way it had in the past, Stuff reported.

When questioned about O'Connor's comments by AM host Ryan Bridge, Labour leader Hipkins said he believed he was "referring specifically to question around the effects of the cyclone and the cost of rebuilding the infrastructure".

"It is a reality that we cannot pay for all of that upfront - we are going to need to finance some of that over a period of time and that will include a mix of borrowing paid back by taxation and, of course, other contributions to that as well," Hipkins said on Tuesday.

Bridge asked Hipkins if he believed New Zealand needed more taxes, to which the Prime Minister said he wasn't sure that was the point O'Connor was trying to make.

Hipkins pointed to O'Connor's subsequent comments, where he pointed out wealth taxes were off the table. 

"He probably should've chosen a slightly different form of words to convey the sentiment he was trying to convey," Hipkins said. "I'll be very clear on what our tax policy is when we announce it but, underpinning all of that, I do want to provide reassurance to New Zealanders that the goal of our Government is to make sure that, when people work hard, they're able to get ahead.

"I acknowledge that you want me to announce our tax policy today - everybody wants me to announce our tax policy today… I'm not going to do that but I acknowledge New Zealanders want to know what our position is on all of the different tax questions that are being raised, and we'll be very clear on those," he told Bridge.

The National Party last month claimed Labour's tax policy was leaked to them, with the main aspect being scrapping GST from fruit and vegetables. Labour has not confirmed not denied these claims.

That came after senior minister David Parker requested to be removed from the Revenue portfolio, saying it was "untenable" for him to remain in the role given had supported a capital gains tax - something Hipkins has ruled out under his leadership.