Bill English talks to Bernard Hickey about tax reform, interest rates and the government guarantee

Here in this video interview with Bernard Hickey from interest.co.nz Finance Minister Bill English says nothing is off the table in a current review of New Zealand's tax structure. New Zealand's structural fiscal deficit means the government needs to restrict spending growth and look at constructing a more efficient tax system, he says.

He says he will be watching a similar review of taxes being carried out in Australia by Treasury Secretary Ken Henry and wants New Zealand to avoid being caught flat footed in comparison. English notes that the Henry review was looking at consumption taxes, capital gains tax and land taxes. He also says any restructure of the New Zealand tax system would take longer than one term of government. He pointed to a recent speech by New Zealand's Treasury John Whitehead as a pointer to the types of debate necessary.

Elsewhere he declined to give a time-frame for any extension or change to the Government's deposit guarantee due to expire in October next year, saying instead that any changes had to be considered as part of the current introduction of Reserve Bank regulation of non bank deposit takers by the end of March next year. English says an industry restructure may be needed as part of that process of reassessing the guarantee.

Also, he says banks will be under general regulatory and political pressure to become more like utilities and make less profits over time. English says credit card and business rates are too high, as are floating mortgage rates.

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[Drsmithnz]

Leaky homes you M.O.B

Mr Williams backed Justice Terence Arnold’s Court of Appeal decision identifying government deregulation of the building industry in the 1990s as the root cause of the leaky-homes disaster.

Yes, a National government stuffed up totally in the 1990s, creating the leaky homes crisis, and 20 years later another National government stands to profit $2bn from the mess. No doubt they will cite the extra income as proof of their “excellent” management of the economy.

[morgantim13]

capitalism only works because socialism is there to save it, just look at the usa

[BussWatcher]

That is nice and all but what about global warming? NZ needs to cut its emissions by 40% or GOD will go back on his word and the world will be flooded like in the days of Noah. 4,525,000,000,000 cubic kilometres of water will appear from a combination of polar icecaps melting and unstable molecules melting together and the sky will open its expanse. Only the Queen and her immediate family will be spared as they are building an ark. Save the earth, Stop global warming NOW!!!

[keithholden]

Depost guarentees (fdic) is what caused the lapsed lending standards in the usa.

No risk for the banks, so they did higher risk loans.

This guarentee on deposits will keep houses inflated as banks loan more than they should with out carrying the risks.

The unemployment over 10% will put pressure on banks.

House prices doubled on borrowed money now we pay the interest on that money. Less to spend in the economy. Higher unemployment.

[nextbay]

What a joke, when will the rest of NZ wake up to this madness.

[nextbay]

this is bull shit Bill, why do u only talk about selling public assets. what happened to growing public assets. earning income for the country. not oneoff small payments for strategic assets.

sexy taxes, drop income tax yeah thats the one send the country to the poor house.

NZ doesnt need a public sector... the government shouldnt own anything and the public should pay for everything.

this model is bull shit and has been proven not to work (USA), the capital system has fallen, hello Wellington