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Key defends economic changes

10/02/2010 8:24:01

The Prime Minister says the economic changes he has outlined in the government's tax changes are about freedom to have more choice.

John Key has proposed raising GST to fund $4 billion of personal tax cuts for middle and high income earners and social welfare benefits, superannuation and working for family payments will be increased to compensate for the GST rate. The government rejected a land tax, a comprehensive capital gains tax on realised property and the risk free method of taxing residential investment properties.

Mr Key admits he does not know how history will read his actions.

"You never know with these things. I actually think New Zealanders will support the view that we have a plan and that we've been reasonably bold."

However, Mr Key is expecting trouble over his plans to open up Crown land to mining, but insists pristine National Parks will not be affected.

"I'm the Minister of Tourism and I won't allow that happen, but there is the capability to make New Zealand a lot wealthier by taking some minerals out."

Mr Key says it would be done in an environmentally friendly way.

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