Call for levy to rebuild Christchurch

Greens co-leader Russel Norman is calling for a nationwide earthquake levy to help pay for the Christchurch recovery effort.

Norman said raising the top two tax rates by one to two cents in the dollar on income above $48,000 would raise close to $1 billion a year to help pay for infrastructure damage, including roads, sewage systems, railways and public buildings.

He said the levy would not apply to anyone living in Christchurch or on any income below $48,000.

''As a practical, principled response to the Christchurch earthquake, the Green Party is putting forward for discussion the idea of a small temporary earthquake levy on all income earners over $48,000,'' he writes on the party's Frogblog.

He said raising the tax rate by half a cent on income between $48,000 and $70,000 and the top rate by 1 cent would raise an extra $461 million a year.

Increasing the $48,000 to $70,000 rate by 1 cent and the top rate by 1.5 cents would raise $750 million more and raising the rates by 1 and 2 cents respectively would bring in $921 million a year.

The biggest proposed increase would see people on $50,000 pay an extra $9.61 a week, those on $60,000 an extra $11.54 and those on $80,000 an extra $30.77.

He told Fairfax Media the figures were compiled by the Parliamentary library.

His posting says the levy could apply for a year or until the city was rebuilt.

''With this small temporary earthquake levy we don't wish to politicise the argument. We don't wish to re-litigate the argument around National's tax changes, nor do we think the Right should use the opportunity to promote their agenda of asset sales to pay for the damage. We need a pragmatic response to the situation we're in. We can return to the arguments about tax rates and privatisation later.''

Income band	Scenario 1 ($M)	Scenario 2 ($M)	Scenario 3 ($M)
$48,000-70,000	(@0.5%) $118	(@1.0%) $236	(@1.0%) $236
Ad Feedback $70,000+	(@1.0%) $343	(@1.5%) $514	(@2.0%) $685
Total yearly revenue	$461	$750	$921

The additional tax to pay for individuals would look like:

Income (pa)	Scenario 1 ($/week)	Scenario 2 ($/week)	Scenario 3 ($/week)
$50,000	$4.80	$9.61	$9.61
$60,000	$5.77	$11.54	S11.54
$70,000	$13.46	$13.46	S13.46
$80,000	$15.38	$23.08	$30.77

 

TAX NOT RULED OUT

The Government is not ruling out a nationwide tax to help fund the rebuilding of Christchurch, but wouldn't be making any decisions soon, Prime Minister John Key says.

He said the lack of economic activity in Christchurch would be a drag on the national economy but the country could cope.

"We've got the financial capacity to deal with the earthquake," he told Radio New Zealand.

Treasury Secretary John Whitehead was travelling to Christchurch today.

Key said he would consider a nationwide tax if it was the best way to pay for the rebuild but said it was too early to think about it yet.

For now the focus remained on the rescue operation, he said.

He said there were enough people working in the rescue teams and identifying bodies and the Australians particularly had been "absolutely remarkable".

"We've got good teams and I believe that is enough. We just need people to believe we can get through this."

The delays in identification were not because of a lack of staff but because of the state of some of the bodies, he said.

"My understanding is they do have enough resources but it's a very laborious task."

Families were being notified but there was a limit as to what could be released publicly, he said.

There could be up to 65 people dead in the language school in the CTV building alone.

- © Fairfax NZ News