Labour finance spokesman David Cunliffe's answered your questions on Labour's policies and the upcoming election in a live chat session.
Prime Minister John Key and Finance Minister Bill English have declined invitations to chat with readers.
Here's what he had to say:
11:53 David Cunliffe:
Hi everyone - I'm
here and ready for your questions.
11:54 Comment From Jonathan
How feasible do you see the 'GST-free fruit and vege' policy on supermarkets and other smaller fruit/vege shops?
11:56 David Cunliffe:
HI Jonathan. No problem. We consulted with supermarkets and shops before deciding on the policy. Supermarkets will easily be able to code the change into their product codes for fresh fruit and vege and regulators (IRD, Commerce Commission if necessary) could track that the GST cut is being passed through to consumers.
11:56 Comment From Jack
You are saying that NZ will balance its government books under Labour by 2014/15. How is Labour intending to decrease the large private overseas debt, mostly mortgages, over what timeframe, and in what way is this different from National's policy?
11:59 David Cunliffe:
Hi Jack. You have rightly named the problem which is high overseas debt driven by mortgages. Firstly I can confirm that we will balance the books by 2014/15, the same year that National is planning to. The real difference is in the out years. The combination of our fair tax plan including a CGT that creates significant ongoing revenue flows, keeping the SOE assets and dividends they produce, and a strong savings policy that lifts the savings rate 4x faster than National's plan, all add up to pressing down on private debt and correcting the long term fiscal imbalance. We are addressing the issues raised by the rating agencies, National is not.
11:59 Comment From Jeremy
I heard you once say the business of business is business, and the business of government is governing. In that case why are you still defending holding onto businesses like Air NZ, especially if selling them would mean more money for schools and hospitals?
12:01 David Cunliffe:
Hi Jeremy. That comment was made in respect of regulatory policy where I was highlighting the profit drivers of private business and the social obligations of government. I don't demur from it. The broader question of asset sales is clear: selling them makes no economic sense because the loss of dividends is greater than the cash up front within 9 years; you can't sell an asset every time you want to paint a school, and kiwis understand that a longer term game plan is needed.
12:01 Comment From Raph
how do Labour plan to get the natural disaster fund back?
12:02 David Cunliffe:
Hi Raph. Our EQC policy will be released later this week. So far, we have not disagreed with the proposed levy increase, I note though that National is not increasing the coverage.
12:02 Comment From scott
hi will you remove the 90 day work trial
12:02 David Cunliffe:
Hi Scott. Yes.
12:02 Comment From Mark
Who will lead the Labour Party to the next election....
12:03 David Cunliffe:
Hi Mark. We are all backing our leader Phil who is doing a great job on this election. That's what we are all focused on.
12:03 Comment From Shane
Hi David, So far Labour has really targeted small and medium businesses… • Repealing the 90 day probation periods • Increase in minimum wage to $15 per hour • Increase in KiwiSaver subsidies to 7% • Back to the 70's with national industry minimum wages and conditions • Compulsory KiwiSaver enrolment Do you actually have any good news for the owners of small/medium businesses that make up the majority of NZ's GDP ???????
12:05 David Cunliffe:
Hi Shane. There's a lot in your question. Let's start with a couple of stats. GDP growth on average has been higher for the past 30 years under Labour govts not National (even if business confidence hasn't always matched it). In other words, Labour's plan will address the fundamental problems of our economy, get growth back to stronger levels, and put more purchasing power in the pocket of your customers. The best way to get through a tough patch is to keep everybody on board - including low income workers and their families. There's also more good news to come soon in our economic development package which will build on the R&D tax credits to drive a higher value, more productive economy. Our monetary reform package is also great news for exporters.
12:05 Comment From Dawn
Should NZ get rid of MMP and if so, what should we replace it with?
12:06 David Cunliffe:
Hi Dawn. My personal view is MMP has served us well - we get a parliament that looks like NZ and everybody's vote is worth the same. In the bad old days big parties could screw the scrum by manipulating marginal seats and minorities missed out. Vote MMP!
12:07 Comment From Palepa
Hi David, What is your view of the Occupy Auckland movement at the moment?
12:08 David Cunliffe:
Hi Palepa. I have a lot of sympathy with the sense of frustration and alienation that lies behind the Occupy movement. I am sickened by the fact that the richest 1% have made huge gains while the bottom 50% have taken big income cuts in NZ as around the world over the last three years. Like our party, I have a rock solid commitment to social justice that informs the way I approach economics. I guess you could say we are serving similar goals by different means.
12:08 Comment From Aaron
How feasible do you see the 'GST-free fruit and vege' policy on supermarkets and other smaller fruit/vege shops?
12:09 David Cunliffe:
Hi Aaron - see my answer to Jonathan above.
12:09 Comment From scott
where are you getting the money from to fund the auckland rail loop
12:11 David Cunliffe:
Hi Scott. We are redirecting part of the money used to fund the 'holiday highway' motorway extension to Wellsford. $1.2 Billion will go from that to 50% fund the city rail loop. We will continue to invest over $300 million to fix the black spots on the Wellsford road, faster than under National's plan. The city rail loop is a key strategic goal because it doubles the through put of commuter trains through Britomart station. Hugely increasing suburban commuter traffic as well as revitalizing our city centre.
12:11 Comment From Anaru
Hi David. What are your thoughts on the practicality of democracy when the majority of the population doesn't bother voting and those that do haven't informed themselves of the issues and policies but still vote based on a "he looks okay" evaluation? Do you think local and national governance literacy should be encouraged or enforced in some way?
12:12 David Cunliffe:
Hi Anaru. It is the responsibility of all of us to explain to our friends and families the importance of whats at stake in this election. NZ stands at a cross roads. Own our future or sell it. Flog the assets for today or build a better future for our kids. Democracy means that people get what they vote for. We're doing our best to get the messages out and appreciate your support to do so.
12:12 Comment From Guest
The response to Jonathon's (very good) question is incomplete - Jonathon is specifically asking about smaller fruit/vege shops, NOT supermarkets.
12:14 David Cunliffe:
Most established businesses will have established IT (or at worst, manual) book-keeping systems that allow them to manage stock flow, run their books, and meet their existing tax obligations. Smaller retailers already manage GST returns. There is nothing hugely different about establishing a different (zero) rate of GST for fresh fruit & veges as part of that accounting process.
12:14 Comment From Aimie
When do you expect to take over the Labour leadership?
12:15 David Cunliffe:
Hi Aimie. We're a team and we're well led. We are all focussed on winning this election so that National can't sell New Zealand's future out. Let's get that job done.
12:15 Comment From Kyle
How committed is Labour to the repeal of Education (Freedom of association) bill, and how will the government afford to continue supporting growing student debt?
12:17 David Cunliffe:
Hi Kyle. Labour will definitely repeal the voluntary student union membership law because it encourages free riding and will undermine the effectiveness of student representation. There is no mandate from students for the law change which is driven ideologically by the Right.
Student debt is a tough issue. We will need to keep a close eye on it. We are committed to maintaining interest free student loans for students in NZ.
12:17 Comment From Pat
Will a Labour/Greens/ NZ First / Hone be a strong stable government????
12:19 David Cunliffe:
Hi Pat. Phil Goff has ruled out Hone being part of an incoming Labour-led government. At the end of the day, voters decide who is in parliament and we will work with the options the electorate gives us. I have every confidence that Labour, Greens (with whom we share a passion for our environment) and NZ First (with whom we share concerns around National selling our assets) would work well.
12:19 Comment From Ryan
Hi David. Do you think if Labour scraps National Standards in primary schools, that will just lead to confusion and mess things up yet again?
12:22 David Cunliffe:
Hi Ryan. National Standards was never a policy, just a marketing slogan. Like so much of this PR driven excuse for a government there was never any educational science behind the 'policy'. That's why teachers and principals right around the country have opposed it. Labour will throw out the National's standards and instead have a sound set of testing and feedback systems based on the curriculum to provide full feedback to parents on the progress of their children. What we will not do is brand half our primary school kids losers.
12:22 Comment From Daniel
Hi David. Does Labour have a back-up plan for the Puhoi-Wellsford Road? It's a pretty dangerous stretch of tarmac that gets used by commercial and rural traffic every day.
12:24 David Cunliffe:
Hi Daniel. Yes. Labour backs the Campaign for Better Transport proposed Operation Lifesaver which will ensure lower fatalities on that road by moving more quickly to fix the highly dangerous black spots. This will also speed the traffic flow to and from the north. However, greater benefits will flow from redirecting the balance to un-choking Aucklands transport and commercial heart.
12:24 Comment From Anaru
As a tenant, I am worried that CGT will increase my rents, as no doubt quite a few property investors will sell up. How much of an impact does Labour's CGT policy have on tenants?
12:25 David Cunliffe:
Hi Anaru. Because NZ is one of the last countries to adopt a CGT we can tell from others what is likely to happen. The evidence is that any change to rents is likely to be small and could be either up or down but only by a few percent. What the policy will do is help more young families into their first homes by backing out a tax bias that currently favours landlords.
12:25 Comment From Kyle
Hi David. What do you think of the "Robin Hood tax" that France and many other European countries are proposing? A tax on financial transactions would go some way to repaying us for the bailouts and guarantees the finance companies owe us.
12:28 David Cunliffe:
HI Kyle. Very interesting question. In principle, there are reasons why a financial transactions tax could be good policy. However, NZ could not go it alone in this part of the world. We will keep a close eye on developments.
12:28 Comment From Eugene
Do you think John Banks wil take Epsom?
12:28 David Cunliffe:
Hi Eugene. No.
12:28 Comment From Andrew
New Zealand has ranked 3rd best in the world by the World Bank in ease of doing business. How do you envision that our ranking will change if you introduce a capital gains tax and remove tax on fresh fruit and vegetables as this is guaranteed to increase the difficultly and compliance cost of paying taxes for businesses?
12:31 David Cunliffe:
Hi Andrew. NZ over the last two years has dropped its rank by a number of places. In addition, credit rating agencies have down graded our currency because fundamental problems in our economy have gone unanswered by a government that just wants to "muddle through". By contrast, we have a real plan to make positive change happen: CGT and universal Kiwisaver to lift savings and correct the tax bias in favour of property - combining to enrich capital flows for local business. Raising the super age while protecting the vulnerable in transition addresses the long term fiscal crunch. And our active economic development package will lift innovation, productivity and growth. NZ can again be one of the best places in the world to do business, but as the rating agencies point out, it will take more than just deregulation to achieve that.
12:32 Comment From Kate
Will labour continue the current upgrade the broadband network?
12:33 David Cunliffe:
Hi Kate. Yes. But the priorities for deployment may vary as we seek to reduce the digital divide and we will keep a close regulatory eye on the market to make sure it does not go back to the bad old days of dominance and gouging by big telcos.
12:33 Comment From Kip
Hi David. If National do go on to win this election, and end up selling a MINORITY share in some state owned assets. Will Labour ever consider buying parts of them back?
12:35 David Cunliffe:
Hi Kip. November 26 is crucial because much of the change that National is seeking your permission for is not only bad but irreversible. Once our electricity system has been sold off to foreign multinationals (which the government admits it cannot prevent) it will be extremely difficult to get it back.
12:35 Comment From Darryl
David, I have no issue voting for you to represent New Lynn. However I do not want to vote for Labour as I do not feel Phil Goff is the right person to lead the labour party, What would you advise I do in regards to my party vote?
12:38 David Cunliffe:
Hi Darryl. Two ticks for Labour is your best way forward. Unless Labour has the strength to lead the next government, the consequences for NZ'ers will be felt for generations. The sale of assets will be irreversible. The gap between rich and poor will widen further. In the name of balancing the books core services will be cut, but tax cuts will still be possible for the wealthiest. I don't want to live in that kind of country nor, obviously do the thousands of kiwis who are now voting with their feet. Help us turn this appalling situation around before it is too late.
12:38 Comment From Bertie
Hi David. You keep hammering small to medium businesses as if they are the cash cow to all of your parties spendup....and on the other hand talk about "growing the economy" funded by these very businesses. Do you (or your party) have any idea what its like to run a business? Seriously.
12:41 David Cunliffe:
Hi Bertie. Yes I spent 5 years in the private sector before parliament, helping businesses grow. My wife has a successful small business. I've always worked my way through as a student and have done a wide range of jobs. As a local MP I'm in touch with small businesses throughout my electorate of New Lynn. I honestly believe our economic plan will help put the country to rights. Deregulation and hands off government has failed. NZ is poorer now than three years ago. We want government pushing on the scrum alongside kiwi business, not sitting on the sideline having a cocoa.
12:41 Comment From Kit
How do you intend to wean the middle classes off of working for families?
12:43 David Cunliffe:
Hi Kit. WFF is a very important way of ensuring that everyone's kids get a good start in life and not just those of the wealthy few. There is broad public support for the idea, that as a society we should recognise that raising a family is important and expensive. So WFF seeks to put support where it's most needed. Our broader economic plan will grow incomes, as it increases productivity and rebalances the economy, towards a stronger, more diversified export sector. Our tax plan balances the books. We will carefully manage WFF so the costs don't get out of control, but we can afford the scheme going forward.
12:43 Comment From Heath
Does Labour have any plans to make any changes to ACC at all? As a healthcare professional I do not want to see NZ go the way of the north American or UK health systems where legal action is used as a first line way of covering medical costs.
12.47 David Cunliffe:
Our ACC system has been the envy of the world. Instead of massive fees to lawyers, we are able to spend the money helping people recover from their injuries. National has, frankly, lied about the state of the fund. It was never insolvent. They didn't need to stop counseling for rape victims. They didn't need to take hundreds of millions of dollars in dividends from the scheme this year. I have seen constituents who could barely walk turned down by ACC on spurious grounds and I'm angry about it. Worse, I suspect that all of this has been a game to set ACC for privatisation via "competition". As a healthcare professional, you will know that is a slippery slope. There is only one way to stop ACC going down it and that is your vote on 26 November.