Macindoe Tim: Taxation (Annual Rates and Budget Measures) Bill — In Committee Third Reading 
Macindoe Tim: Taxation (Annual Rates and Budget Measures) Bill — In Committee Third Reading 
[Volume:672;Page:18952] 
TIM MACINDOE (National—Hamilton West) 
: 
 I am delighted to follow the Hon Nanaia Mahuta. Of course we represent the same area—her electorate is a little bigger than mine but we are in the same region. I particularly thank her for acknowledging that under this Government tax rates have come down and that this Government has been focusing particularly on the needs of vulnerable New Zealanders those on low and fixed incomes who have needed protection through the worst impacts of the current economic recession. 
Hon Steve Chadwick 
: Tell us about cuts to family violence. 
TIM MACINDOE 
: It is about focusing on the things that matter to New Zealanders I say to Ms Chadwick—things such as the huge improvements that Tony Ryall has secured in the health system or the fantastic work that Anne Tolley is doing in the education system. 
But I need to come back to tax because that is what this debate is about. Nanaia Mahuta reminded us of that old political principle that if one repeats a lie often enough people will start to believe it. That frankly is Labour members’ strategy at the moment. That is their entire plank in the current election year as they go towards 26 November. Those members have nothing positive to say they do not have a credible plan and they do not have any ideas of their own so they will keep misrepresenting what is actually being done in the hope that enough people will believe it to get them over the line. 
In fact Labour has taken one of the oldest political maxims of all time and slightly adapted it: no taxation without misrepresentation. That is the Labour mantra that we now have to put up with. The really fascinating thing when one listens to Labour members is that they never talk about the figures. They never actually get down to the detail. They hate that. It is always “cuts” here and “National’s rich mates” there but they never give an honest analysis of who pays the tax how it is used and what the overall impact of tax policy is on commercial activity encouraging savings and investment and Government spending. They love to do the spending but they just cannot get it right in terms of how to provide for that. 
The first thing to remember—and the Minister of Revenue reminded us of this when he took a call about half an hour ago—is that last year’s tax package was essentially fiscally neutral. It was about rebalancing the overall tax imposition on all New Zealanders to create fairness—I repeat that phrase for Ms Chadwick because she is pretty concerned about it; to create fairness—to give extra support to vulnerable New Zealanders and to stimulate investment in manufacturing primary production small and medium sized enterprises and so on because I say to Ms Chadwick those are the kinds of activities that protect and create jobs and generate wealth for this country. They generate wealth and Labour members cannot stand that word. Next I will be saying “profits” and I will be hounded out of the Chamber by the  
Hobbit 
 haters and the muppets and the envy brigade opposite. But actually profits are a pretty important thing to protect and to ensure we can get in an economy. 
The tax switch last year is already playing an important role in building the platform for economic growth and putting more money in the pockets of low and middle income New Zealanders. Labour members hate the fact that most of last year’s income tax reductions went to those on modest incomes whom they profess to represent in this House but when one listens to what those members are actually saying about this bill one can tell that they have abandoned that group completely. 
As the Minister of Revenue reminded us when he took a call Labour members never admit that the bottom two rates were reduced in last year’s Budget to the point where nearly three-quarters of the population pay a marginal tax rate of just 17.5 percent. So I can tell the Hon Nanaia Mahuta who challenged me a short time ago about how my constituents are faring in the current conditions that most of the electors in Hamilton West who are on middle incomes or lower incomes were absolutely delighted by that change and I was pleased to be part of a Government that delivered it for them. 
What a fantastic achievement that was especially in the challenging economic circumstances that we inherited from the outgoing Labour Government. That Government had the best global conditions of any Government for at least a generation and it squandered the lot—blew it spent irresponsibly and made no provision for the bad times that would inevitably come with economic cycles. It just blew the lot. Well I say that we should celebrate what this National Government and its support partners have been doing and are continuing to achieve. 
Labour avoids the figures but the figures are quite clear. Let me return to the Deloitte analysis which Mr Woodhouse talked about a short time ago. In terms of total Government revenue the 2011-12 forecast is for $64.1 billion. The large majority of this—$47.4 billion—will come from GST corporate tax and individual income tax.