Smith Lockwood: Customs and Excise (Alcoholic Beverages) Amendment Bill — First Reading Second Reading Instruction to CommitteeCWH In Committee Third Reading 
Smith Lockwood: Customs and Excise (Alcoholic Beverages) Amendment Bill — First Reading Second Reading Instruction to CommitteeCWH In Committee Third Reading 
[Volume:608;Page:5370] 
Dr the Hon LOCKWOOD SMITH (NZ National—Rodney) 
: 
 I would like the House to reflect on these words: “Smokers and drinkers need not fear sharp increases in tobacco and alcohol prices during the next 3 years.” 
Simon Power 
: Who said that? 
Dr the Hon LOCKWOOD SMITH 
: Those were the words of the Minister of Finance Michael Cullen. Do members know when he said those words? He said them just prior to the election last year. He told New Zealanders that smokers and drinkers need not fear sharp increases in tobacco and alcohol prices during the next 3 years. Some colleagues are calling out “Pinocchio!”. 
It is interesting to reflect that Dr Michael Cullen is nowhere to be seen. We know he is around because he briefed members on this legislation earlier on. But Dr Cullen knows that just before the election last year he promised New Zealanders that there would be no sharp increases in alcohol prices. Taking the tax on sherry from $21 a litre of alcohol to $39 a litre of alcohol is damn near a 100 percent increase. Now I do not want to be picky but I would suggest that a damn-near 100 percent increase is a sharp increase in the price of alcohol. That is why Dr Cullen got the expendable Minister to introduce this bill into the Parliament. We know that the Hon Jim Anderton is sort of in his swansong period now. Everyone knows that he is on the way out and that he is expendable. 
The vanity of Dr Cullen! He does not want his Budget contaminated by the deceit. He promised prior to the election that there would be no sharp increase in alcohol prices and this tawdry little bill doubles the tax on a whole range of alcoholic beverages in this country. 
A lot of older folk go to bed reasonably early— 
Dr Lynda Scott 
: They have to—to keep warm. 
Dr the Hon LOCKWOOD SMITH 
: Yes one of my colleagues reminds me that older folk have to go to bed early to keep warm. When they wake up tomorrow morning they will face a bleak winter. We know that older folk will get cold this winter because of the hopeless ineptness of this Labour Government in managing electricity supplies in this country. Its policies in stopping electricity generation are just a disgrace. We know that when older folk go to the Returned Services Association they will not be allowed to have a cigarette because of this miserable nasty Government. 
When they go to buy their sherry or port the old folk of this country—one would think Labour might care a bit about their comforts in their senior years—will now pay a 100 percent increase in the tax on their sherry. I am told that that is around about $4 a bottle. Now to people like Dr Cullen Clayton Cosgrove or John Tamihere an increase of $4 a bottle for sherry might not be a lot of money. But for people dependent on their superannuation—the older retired folk—$4 is real money. Our older retired folk will wake up tomorrow morning to a bleak winter a cold winter and a future where they cannot have a cigarette at the Returned Services Association. When they buy their bottle of sherry or port they will have to pay twice as much tax. 
When Jim Anderton spoke on this legislation and I think also the young guy from north of Wellington Mr Hughes—the “cocopop kid”—one of the arguments we heard was that this legislation was aimed at harm minimisation. Can they not see the paradox in what they are arguing? The Government doubles the tax rate on these alcopops sherry and port—not to mention some of our fine wines—and claims that will stop people buying the drinks yet it budgets for $18 million more tax. How will a Government gain of $18 million more tax revenue reduce consumption of those drinks? It is an unashamed tax grab. It is tax grab at the expense of our older folk and our younger folk. Government members are so naive if they think that this tax will stop young people drinking. 
Jim Anderton said that young folk buy these drinks out of their pocket money. Jim Anderton should get real and get back in touch with where young people are at. Research shows us that alcohol for young people is often bought by their parents families and friends. It is not bought out of their pocket money. All that will happen is that it will cost mum and dad a bit more when they buy the alcohol for their young people. Anyone who thinks that young people buy these drinks out of their pocket money and that this tax will stop them buying alcohol is simply so old and out of touch that they should get out of Parliament before they make bigger fools of themselves. 
No wonder Dr Cullen is nowhere to be seen. How close was it to the election that Dr Cullen made the promise? When was the election? 
Opposition Member 
: In July. 
Dr the Hon LOCKWOOD SMITH 
: Which day in July? 
Opposition Member 
: It was 27 July. 
Dr the Hon LOCKWOOD SMITH 
: He made the promise on 9 July. On 9 July last year Dr Cullen promised that drinkers need not fear sharp increases in alcohol prices and he has doubled the tax. 
One has to ask oneself what the Government will spend this $18 million on. I worry that it will spend more of it on that flagship policy closing the gaps. The Government will spend more money on Maori television but it will also spend some it on the new Boeing 757 for Prime Minister Helen Clark to fly to more world capitals to embarrass New Zealand as she lobbies for her new position at the United Nations. The Government will spend the money on all sorts of worthless things. Older folk in New Zealand—our retired folk and our respected senior citizens—will pay for it. Every time they buy a bottle of port or sherry they will pay another $4 towards Helen Clark’s overseas extravaganzas. To think that this tax will stop young people drinking alcopops shows how deluded and out of touch this Government is. 
Labour has been in office only 3 years— 
Gerry Brownlee 
: Alcopops are not covered. 
Dr the Hon LOCKWOOD SMITH 
: My colleague says that alcopops are not covered. One wonders what the Government will achieve. The Government will hit some high-quality New Zealand table wines that are over 14 percent alcohol. This Labour Government will double the tax on some of our finest table wines tonight and it thinks that is good for New Zealand. It is crass stupidity. Members opposite should be upfront and honest. It is a tax grab it breaks a faithful pre-election promise by Dr Michael Cullen and it will not do anything to stop young people drinking alcohol.