I see that Mr Norman, co-leader of the Greens, in a Pavlovian response to the disaster, has called for the introduction of a special tax levy to help fund the recovery.
It may be that the shear scale of the disaster may require extreme measures but I would urge the Government to think very carefully before deciding to do a 'Gillard'.
I say that for two reasons. First, much (not all) of the ensuing expenditure is likely to be of a capital nature which has a very long pay back period. Second, taking money out of peoples pockets is likely to have an adverse impact throughout the rest of the country where economic recovery is dependent on continued spending.
But it certainly does bring into sharp focus the dilemma that Labour is facing with its me too, Johnny come lately, first $5,000 tax free election bribe. Phil Goff must spell out in specific terms where the money is coming from given the certain adverse effect the earthquake will have on the Crown accounts.
Perhaps he can turn to Mr Cullen for sage advice.
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