Turei Metiria: Taxation (Budget Measures) Bill — In Committee 
Text is incorporated into the Bound Volume 
Turei Metiria: Taxation (Budget Measures) Bill — In Committee 
[Sitting date: 20 May 2010. Volume:663;Page:11166. Text is incorporated into the Bound Volume.] 
METIRIA TUREI (Co-Leader—Green) 
: 
 Part 3 of the Taxation (Budget Measures) Bill deals with the property tax changes that are being proposed by the Government around depreciation and capitalisation. Those are two areas where the Greens agree that changes need to be made. We are pleased that there has been a small step in the right direction but there is nothing like the kind of serious reform that was necessary and could have been provided through a capital gains tax excluding the family home. We see that the Government has made some small steps while making more significant changes of course to the top tax rate. But it has made some small steps in the property area. It has not however done anything to deal with the inevitable rise in rents that will result from the changes—any changes—it makes to property tax a capital gains tax included. 
A truly responsible Government that talked and thought about a smart economy that was good for our people and our environment would have a joint approach whereby one not only shares the tax obligation more fairly through property taxes but ensures that there is provision of more affordable rental housing for those families who need it because of the inevitable rent rises. Treasury has I understand estimated an increase in rents of some 1.4 percent as a result of these small steps in property tax changes. I think that is a very conservative estimate and I think it is quite possible that we will see an increase of more than 1.4 percent because we also have the impact of inflation on rents and a growing need for rental accommodation. We have families who are desperate for somewhere to live. 
The Green Party’s Mind the Gap package which we released on Monday and which provides an alternative set of solutions to deal with inequality and our economic and environmental issues had not only a capital gains tax to provide the sharing of the tax obligation but a programme to build another 6000 State houses over 3 years. That would cost $2 billion and we would need to make sure that we could find that money—$2 billion dollars over 3 years. It would also provide 28000 new jobs. So not only does it have our package of capital gains tax and building State homes and not only would it provide an income for the Government and spread the tax obligation more fairly but it would provide housing for those families who are desperately in need. We would have not just housing but good-quality warm dry housing. 
One in four households spend more than 10 percent of their income on energy just to keep warm—just to keep warm. Three out of four New Zealand homes are too cold to be healthy. That causes costs to our economy. There is a cost to the economy in excess of $500 million in terms of energy lost production and hospitalisation. There are 50 admissions a day for respiratory illnesses. That costs $54 million a year. One hundred and eighty thousand workdays are lost to sickness caused by cold and unhealthy housing. Over $400 million is spent unnecessarily on energy. That $400 million comes from the budgets of our families who have to spend so much of their income on energy just to keep warm. So we must invest in housing in this country. 
Housing is much more important than new motorways. Housing is a core part of New Zealand’s infrastructure. It supports our families so that our families can be productive healthy and well. Yet this Government has cut $100 million from the State house building budget. There will be no new State houses built under this Government because it does not believe that New Zealanders deserve to be housed. It will give money to the road-building lobby—sure that is fine—but it will not invest in homes for our families so that our families can take care of their children. 
We have 10000 families on the State house waiting list who are desperate for somewhere to live. We have people living in garages. Thirty to 40 percent of our most vulnerable young people in this country are living in unsafe housing which puts them at risk. Where the investment for those families those children and those young people? It is nowhere from this Government.