1 00:00:00,080 --> 00:00:02,360 Speaker 1: So according to a Treasury report, the government got themselves 2 00:00:02,400 --> 00:00:04,400 Speaker 1: in a fiscal hole. There's no surplus. They need to 3 00:00:04,400 --> 00:00:05,960 Speaker 1: cut more. They may even need to look. 4 00:00:05,800 --> 00:00:07,680 Speaker 2: At tax If you compare in New Zealand with the 5 00:00:07,720 --> 00:00:10,119 Speaker 2: rest of the world, we're not as competitive as we 6 00:00:10,240 --> 00:00:12,960 Speaker 2: used to be, which is to say that our corporate 7 00:00:13,039 --> 00:00:15,680 Speaker 2: taxt level is reasonably high when you compare it to 8 00:00:15,720 --> 00:00:17,279 Speaker 2: the rest of the development. 9 00:00:16,920 --> 00:00:19,840 Speaker 1: Which of course is true. Treasury say we need significant 10 00:00:19,880 --> 00:00:23,320 Speaker 1: reform and reductions to public services. Former Treasury Director in 11 00:00:23,320 --> 00:00:25,079 Speaker 1: New Zealand and the should have seen your fellow Bryce 12 00:00:25,120 --> 00:00:28,600 Speaker 1: Wilkinson back with us. Bryce morning, Good morning, Michael. At 13 00:00:28,600 --> 00:00:31,400 Speaker 1: the two point four billion operating that she talked about 14 00:00:31,400 --> 00:00:33,320 Speaker 1: in the budget last year, this iss Nichola Willison was 15 00:00:33,360 --> 00:00:35,159 Speaker 1: always going to be tight. Is this coming back to 16 00:00:35,159 --> 00:00:35,839 Speaker 1: bite them a bit? 17 00:00:36,920 --> 00:00:40,440 Speaker 3: Yes? I think so, And that was the conclusion after 18 00:00:40,920 --> 00:00:43,920 Speaker 3: last year's budget as it was a grim outlook. The 19 00:00:44,080 --> 00:00:48,159 Speaker 3: parameters she set herself are very tight and arguably too 20 00:00:48,200 --> 00:00:51,839 Speaker 3: tight to keep within. So you're going to struggle to 21 00:00:51,960 --> 00:00:55,600 Speaker 3: keep on that on that target. It's good to see 22 00:00:55,640 --> 00:00:58,920 Speaker 3: that Treasury is blowing the whistle on it. They seem 23 00:00:59,000 --> 00:01:01,920 Speaker 3: to be on the ball, which is good because this 24 00:01:02,040 --> 00:01:03,280 Speaker 3: issue is really important. 25 00:01:03,440 --> 00:01:05,680 Speaker 1: You're hanging out with the business community more than I am. 26 00:01:05,680 --> 00:01:08,760 Speaker 1: But even I'm hearing there's a general consensus. Correct me 27 00:01:08,800 --> 00:01:11,560 Speaker 1: if I'm wrong that the government should have gone harder 28 00:01:11,720 --> 00:01:13,959 Speaker 1: earlier and we may not be in the mess we're 29 00:01:13,959 --> 00:01:15,080 Speaker 1: in there. Is that fair or not? 30 00:01:16,200 --> 00:01:19,840 Speaker 3: Well, yeah, that's certainly it my view and the view 31 00:01:20,080 --> 00:01:23,960 Speaker 3: of men as my colleagues. So and that was why 32 00:01:24,120 --> 00:01:26,440 Speaker 3: it was such a good budget as it left an 33 00:01:26,440 --> 00:01:29,800 Speaker 3: outlook which looked very difficult for the minister. 34 00:01:30,800 --> 00:01:35,040 Speaker 1: Why is she talking now about corporate tax and if 35 00:01:35,040 --> 00:01:36,319 Speaker 1: there's a move, what would it do? 36 00:01:38,200 --> 00:01:42,000 Speaker 3: This could be good? Is Hillman's corporate tax raid is 37 00:01:42,440 --> 00:01:46,680 Speaker 3: high compared to other jurisdictions, And in particular, the government's 38 00:01:46,720 --> 00:01:51,440 Speaker 3: looking for more foreign direct investment to help stimulate economic 39 00:01:51,480 --> 00:01:56,720 Speaker 3: growth and improve infrastructure. And that's good and applaud them 40 00:01:56,720 --> 00:02:00,720 Speaker 3: for that, But they're just an answer setting up an 41 00:02:00,760 --> 00:02:05,800 Speaker 3: institute to attract foreign capital and try and compare with 42 00:02:05,880 --> 00:02:10,080 Speaker 3: Singapore and Ireland. But Singapore and Ireland the tax rates, 43 00:02:10,160 --> 00:02:12,120 Speaker 3: the corporate tax rates are more than the teen to 44 00:02:12,160 --> 00:02:13,440 Speaker 3: twenty percent range. 45 00:02:13,919 --> 00:02:17,720 Speaker 1: So text does matter, Yes, it does. Can you set 46 00:02:17,760 --> 00:02:20,200 Speaker 1: it at twenty cents to compete while having a top 47 00:02:20,280 --> 00:02:22,239 Speaker 1: rate of thirty nine. 48 00:02:23,680 --> 00:02:27,640 Speaker 3: I think that would be very difficult. I'd be worried 49 00:02:27,680 --> 00:02:31,320 Speaker 3: that people would find ways around that to exploit exploit 50 00:02:31,400 --> 00:02:32,200 Speaker 3: it exactly. 51 00:02:32,240 --> 00:02:33,640 Speaker 1: So you go to twenty what do you do with 52 00:02:33,680 --> 00:02:36,720 Speaker 1: thirty nine? And then of course the opposition go nuts 53 00:02:36,760 --> 00:02:38,720 Speaker 1: because they say you've run the economy into the ground. 54 00:02:38,720 --> 00:02:41,639 Speaker 1: You've got yourself a recession, you're cutting You know that. 55 00:02:41,639 --> 00:02:43,440 Speaker 1: That's a massive fight an election year, isn't it. 56 00:02:44,800 --> 00:02:48,119 Speaker 3: Yes, it's yeah. And you've got to find the money 57 00:02:48,160 --> 00:02:51,359 Speaker 3: from somewhere else. So you've got to have a credible 58 00:02:51,400 --> 00:02:54,520 Speaker 3: physcal playan and the expenditures are it has to be 59 00:02:54,600 --> 00:02:55,240 Speaker 3: part of that. 60 00:02:55,880 --> 00:02:58,800 Speaker 1: Interesting to talk as always, Bryce preciated very much Bryce Wilkinson, 61 00:02:58,800 --> 00:03:01,880 Speaker 1: Form of Treasury Director and Use Initiative Senior Felly. For 62 00:03:02,000 --> 00:03:05,040 Speaker 1: more from the Mic Asking Breakfast, listen live to News 63 00:03:05,080 --> 00:03:08,000 Speaker 1: Talks at B from six am weekdays, or follow the 64 00:03:08,040 --> 00:03:09,480 Speaker 1: podcast on iHeartRadio.