Genter Julie Anne: Public Finance (Fiscal Responsibility) Amendment Bill — In Committee Third ReadingText is incorporated into the Bound VolumeGenter Julie Anne: Public Finance (Fiscal Responsibility) Amendment Bill — In Committee Third Reading[Sitting date: 27 August 2013. Volume:693;Page:12920. Text is incorporated into the Bound Volume.]JULIE ANNE GENTER (Green): I rise on behalf of the Green Party to speak in support of this Public Finance (Fiscal Responsibility) Amendment Bill. Although I acknowledge that the bill had a very unfortunate political genesis luckily the very worst aspects of that original billACT’s spending cap have been dumped and what has been left is actually a pretty good bill requiring greater transparency from the Government. The principle that it introduces when considering a revenue strategy—for example taking into account efficiency and fairness—is quite a good principle. The Green Party can support that principle. Having regard to the impact on present and future generations is extremely important and I would say that it is very much in line with the Green Party’s philosophy on economics and monetary and tax policy. However if this bill was implemented now it would become quite clear to everyone that what the National Government is doing is quite the opposite of this.There are many examples of National policy that have reduced the efficiency and reduced the fairness of the tax system. We have growing inequality in New Zealand and that in part is due to the lack of a capital gains tax which would be a very fair and efficient way to broaden our revenue base. It is also because when National came into power in 2008-09 it introduced regressive tax cuts which gave a lot of wealth to those who already had a lot of wealth. Basically it is a wealth transfer from those who are the least well off the most vulnerable in our society to those who have the most. But of course aspects of this bill like the investment statement are not going to come into force until 2017 by which time of course this National Government will have long since moved into Opposition and will not be required to be held to account to these good principles of efficiency fairness transparency and taking into account the capital position of the Government—not just looking at debt and at GDP.The Green Party would say that this bill does not go far enough. A move to having a more clear investment statement that has a medium and long-term outlook is quite a good move—that is in line with Green Party principles—but it does not take into account the natural and social capital that is essential for the long-term prosperity of New Zealanders. So we have a challenge and we have an opportunity in the 21st century. We are coming to grips with resource depletion climate change and rising inequality. All of those things do not serve the greater interest of the people of New Zealand. The global financial crisis is a crisis but it is also an opportunity to revisit some of the assumptions that have been operating since the 1980s.What the Green Party fundamentally recognises is that the economy is a subset of our society. It does not reflect all of the unpaid work that enables New Zealanders to have enough to eat and to have a high quality of life in New Zealand. The economy is just one subset of our human activities that we take part in as part of society and society is a subset of the natural environment. We cannot have ongoing economic growth if we are drawing down non-renewable resources and increasing the carbon pollution in the atmosphere. It is simply not possible.In order to have the ability for New Zealanders to have a high quality of life well into the future to enjoy the benefits that come with living in a place that has water that issafe for swimming and safe for drinking and that is going to be available to future generations—not just the people who are currently in business today—and to be able to have the benefit of a stable climate we need to start taking all of these things into account. We need to live within our means and we need to look after the fairness and opportunities for all New Zealanders if we want to have a fair society that enables future generations in New Zealand to thrive. This bill makes some small changes that we hope will increase the efficiency fairness and transparency of Government revenue strategies and the Government’s long-term fiscal strategy. Thank you.