Personal tax cuts 'highly likely', says Peters

Winston Peters

New Zealand First leader Winston Peters says it is "highly likely" Finance Minister Michael Cullen will deliver personal tax cuts before the next election.

The comments follow more oblique hints along similar lines made by Dr Cullen himself since the Budget.

Mr Peters' party gives the Labour minority Government confidence and supply and he is also the Foreign Affairs Minister, although he insists he is not a part of the Government.

Last year in the Herald he predicted personal tax cuts before the next election.

He was asked on TVNZ's Agenda programme over the weekend if he still believed this would happen and he replied: "Yes, I do."

Asked if he thought Dr Cullen would be the person delivering them, he said "I think that's highly likely. It's not my choice, but I think that's highly likely.

"Sometimes there is a compelling argument that grows every day, in this case it's our economic performance," he added.

The Government is reviewing company tax, with changes expected to be made in 2008.

After the Budget Dr Cullen hinted that changes to the company tax could not be made without consideration to the impact of that on other areas, asking if it was desirable to have different company and personal tax rates.

Mr Peters meanwhile confirmed on Agenda that he planned to visit the United States and said he expected to meet Secretary of State Condoleezza Rice.

He made improving New Zealand's relationship with the US one of his priorities when he became Foreign Minister.

"We've had 21 years of what is largely a stalemate, it's time to move these things forward."

But Mr Peters would not say how he intended to work on the nuclear policy impasse, saying he shared his views with officials "rather than make all sorts of statements against which people are going to try and measure this".

He did not yet have a date for his visit and he did not expect to meet President George W. Bush.

"That is [for] a prime ministerial visit. I'll stick with the Secretary of State, Condoleezza Rice."

- Additional reporting by NZPA