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An informal meeting has been held between Revenue Minister Peter Dunne and his purse-strings colleague Finance Minister Michael Cullen to discuss the unusual situation that will see Mr Dunne help design the Government's election year tax cuts - and then likely argue for something different as United Future
leader.
The potentially tricky dual role Mr Dunne is filling in election year is one that Foreign Minister Winston Peters will also have to manage, as both party leaders try to differentiate their parties from Labour closer to the election to win votes.
Mr Dunne admitted that as he works closely with Dr Cullen to decide the shape and size of tax cuts in this year's Budget, the potential difficulties of his two roles is in the front of his mind.
"There's an issue there and I've discussed it informally with Michael Cullen," Mr Dunne told the Herald.
"Not to seek his approval for us having a separate policy, but to say there's an issue here, to be absolutely clear I will not act in any way to compromise Budget secrecy."
Mr Dunne said the situation was unusual and he couldn't think of a prior example of it occurring.
Both Mr Dunne and Mr Peters are ministers outside Cabinet in Helen Clark's Government, but their portfolios are important ones.
Closer to the election both men will need to carve out niches for their parties and that may require them to attack Labour - possibly even in their own portfolio areas.
Mr Dunne said he felt he needed to raise the issue of his dual roles with Dr Cullen to "clear the decks" before Budget decision-making began in election year.
"We will be doing our jobs as professionally as we can," he said.
"Provided a fair measure of common sense applies, I don't foresee a problem - but it is an area that has some potential difficulties associated with it."
United Future secured an agreement to review business taxes in its confidence and supply deal with Labour after the 2005 election.
Mr Dunne has also promoted a low, comparatively flat personal taxation system and United Future could adopt a tax policy which goes further than what Dr Cullen offers in cuts in this year's Budget.
Mr Dunne said he and Dr Cullen would closely watch the general economic situation over the next couple of months before deciding on the shape of the Government's personal tax cuts.
Mr Dunne said he felt the four tests that Dr Cullen had chosen to apply to tax cuts were "reasonable".
