Tax cuts locked in, says Cullen

Labour has moved to reassure voters that their tax cuts are safe, as global financial turmoil creates uncertainty.

Finance Minister Michael Cullen reiterated yesterday that tax cuts, due to take effect from today with further cuts scheduled from April 2010 and April 2011, were locked into place by law. That gave people "certainty", he said.

His comments came after National's finance spokesman Bill English questioned Labour's commitment to tax cuts and revived memories of the "chewing gum" cuts, which were cancelled in 2006.

Mr English said National was committed to cutting taxes in April, and again in 2010 and 2011. It is due to unveil its tax cut package soon and has signalled deeper cuts than those scheduled by Labour.

Today's tax cuts are among several changes to take effect from today, including fishing rules and policing laws.

The first stage of the China free-trade deal also takes effect from today - making doing business there cheaper for some firms.

Today's changes include:

Tax cuts of up to $28 a week.

Boost to Working for Families payments.

Increase in pension payments.

Free off-peak travel for SuperGold cardholders.

Rise in subsidies for new hearing aids.

Policing Act changes giving frontline officers broader powers.

A year's ban on fishing for blue cod in the Marlborough Sounds, a reduction in the quota for orange roughy off the Chatham Rise and some of the bans aimed at protecting dolphins.

- © Fairfax NZ News