Foreign buyers tax major sticking point in government talks

National's plan to fund tax cuts through a tax on foreign home buyers is proving to be a major sticking point in coalition negotiations.
New Zealand First voted for the foreign buyers ban while in coalition with Labour and is flatly opposed to partially rolling it back.
That's a big problem for National, which plans to pay for tax cuts with the billions the party says the tax will raise.
Michael Reddell is a former Reserve Bank economist and was critical of National's tax plan heading into the election.
Reddell spoke to Corin Dann.