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Home / The Country

PM Chris Hipkins confronts minister Damien O’Connor’s claim there isn’t enough tax in New Zealand

Adam Pearse
By Adam Pearse
Deputy Political Editor·NZ Herald·
10 Aug, 2023 02:59 AM3 mins to read

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Agriculture Minister Damien O'Connor's comments about tax have been taken out of context, according to Prime Minister Chris Hipkins.

Agriculture Minister Damien O'Connor's comments about tax have been taken out of context, according to Prime Minister Chris Hipkins.

Prime Minister Chris Hipkins believes Agriculture Minister Damien O’Connor’s claim New Zealand doesn’t have enough tax is being taken out of context.

He also denies footage of O’Connor making the comment was withheld by the Government even as the Meat Industry Association, which organised the event O’Connor was speaking at, allege O’Connor’s office declined the association’s request to release the footage.

O’Connor appeared in a political debate with National’s agriculture and trade spokesman Todd McClay at the Red Meat Sector Conference on Sunday night.

During a Q+A with the crowd, a self-described sheep and beef farmer from Eketāhuna asked how the red meat sector might be affected by a wealth tax, which had been proposed by the Green Party and Te Pāti Māori - two parties that, on current polling, Labour would likely need to form a government.

O’Connor first stated he was “not over the detail” of their policies but referenced global concern about the “concentration of wealth at the top end”.

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He then said, “We probably don’t have enough tax in this country”, which was greeted with groans from the crowd.

O’Connor then referenced the rebuild cost after Cyclone Gabrielle, how it was expected such events would continue to occur and that further investment was required to protect future generations.

“If we want to continue to run our economy the way we’ve run it in the past, we’re going to have to contribute more,” he said.

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Hipkins has already ruled out a wealth tax under his leadership. National’s Nicola Willis has previously claimed Labour’s as yet unreleased tax policy contains a proposal to remove GST from fruit and vegetables.

Prime Minister Chris Hipkins announced new protection measures for the Hauraki Gulf at the Tamaki Yacht Club in Auckland yesterday. Photo / Jason Oxenham
Prime Minister Chris Hipkins announced new protection measures for the Hauraki Gulf at the Tamaki Yacht Club in Auckland yesterday. Photo / Jason Oxenham

Speaking in Taranaki, Hipkins said it wasn’t a fair summary of O’Connor’s comments to claim the minister was advocating for more taxes.

“[O’Connor has] been very clear he was not arguing for an increase in taxes or any new taxes,” Hipkins said.

“I accept that his answer was somewhat convoluted and that one particular line has been taken out of context.”

Yesterday, McClay alleged Labour had “demanded” the video footage of the debate be recalled because of O’Connor’s comments.

“Labour is all over the show on tax. David Parker threw in his job as Revenue Minister after the Prime Minister ruled out a wealth tax, Labour is now considering removing GST from fruit and veges despite Grant Robertson’s vocal opposition to it and now we have Mr O’Connor more or less lamenting his leader’s decision to rule a line through a wealth tax,” McClay said.

“Labour needs to come clean with New Zealanders and be upfront about what their tax policy actually is.”

Hipkins denied the footage had been withheld.

A spokesperson for O’Connor’s office today claimed the association had been clear the panel would not be recorded or broadcast, but that media would be in attendance.

“We’re disappointed that the [Meat Industry Association] have back-tracked on that agreement,” the spokesperson said.

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An association spokesman yesterday said: “As is routine practice, MIA gave an undertaking to Minister Damien O’Connor’s office that we would seek permission before releasing the recording of the political debate.

“Following the event, we sought approval and the minister’s office declined.”

The association did not comment further on the statement from O’Connor’s office.

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