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

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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