Cullen to be paid $1k a day for ongoing media work on tax recommendations

I think it’s unusual for the chairman of a Government working group to continue promoting recommendations and defending the Government’s position via media after delivery of their report. I hope it’s more unusual to be paid $1000 a day to do it.

Stuff: Sir Michael Cullen debates impact of tax reform on farmers, without the politics

Sir Michael Cullen has continued his public statements on the impact of capital gains tax, although his tone has softened considerably.

On Wednesday the Tax Working Group chairman released a lengthy statement on the impact the proposals of the Tax Working Group would have on farms.

It came two days after the former Labour MP and minister of finance questioned statements made by the National Party about the possible impact on KiwiSaver.

Cullen did not say why he issued the latest statement, instead claiming he had “responded to a request to comment on recent claims about the effect on farmers”.

This week it emerged that while the Tax Working Group has disbanded, Cullen has had his contract extended by the Government.

Cabinet papers show Cullen was to be paid $1062 a day in his role as chairman of the TWG.

“We extended his appointment as the chair of the TWG to 30 June because we were aware there would be extended public discussion on the report, and this has played out,” Finance Minister Grant Robertson said in a statement.

That will be close to $100,000 over three months.  Where is Ardern’s so-called fairness in this?

If Ardern and Robertson aren’t capable of explaining and defending the working group recommendations then perhaps they should be paying Cullen out of their salaries.

Cullen confirms CGT will not be addressed in interim TWG report

Michael Cullen, chairman of the tax Working Group, has confirmed that the interim report due to be released this month will make no recommendations on a Capital Gains Tax.

Stuff: Absence of tax recommendation means ‘more uncertainty for longer’, says National

The Tax Working Group will not recommend whether or not New Zealand should get a broad-based capital gains tax, in an interim report due out this month, chairman Sir Michael Cullen has confirmed.

Stuff had previously reported that any recommendation on the controversial tax would be deferred until the working group publishes its final report in February.

Cullen said on Wednesday that he was “happy to confirm that”.

Finance Minister Grant Robertson has played down the implications, saying the work the Tax Working Group was involved in was “always supposed to be a two-stage process”.It seems remarkable that one of Labour’s most prominent policies and their big tax policy, CGT, would not be addressed on the first report.

Surely for a tax package to make any sense it would include the major components, in general terms at least.

As Amy Adams says, this won’t do anything to address uncertainty in the business community.

It seems to confirm that what the TWG would like to recommend on a workable CGT is outside the parameters given them, or Labour have indicated is not something they want to hear at this stage.