Tremain Chris: Taxation (Annual Rates Business Taxation KiwiSaver and Remedial Matters) Bill — In Committee 
Tremain Chris: Taxation (Annual Rates Business Taxation KiwiSaver and Remedial Matters) Bill — In Committee 
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CHRIS TREMAIN (National—Napier) 
: 
 That was Doug Woolerton from New Zealand First who brought to us his perception of wealth creation among the top 5 percent of wealthy people in the world. 
But I think we need to be clear about what the debate has been around I say to Mr Woolerton. It has been around the number of people in New Zealand who have moved into the top tax bracket and who now pay 39 percent. It is no longer just the 5 percent of New Zealanders who were originally there; we have got to the point where 12 to 15 percent of New Zealanders are in that top tax bracket. People in my own electorate and other members’ electorates—teachers and policemen—have moved into that top tax bracket. I ask Mr Woolerton whether they are rich and whether nurses are rich. 
R Doug Woolerton 
: No. 
CHRIS TREMAIN 
: They are not. Are policemen rich? I believe that they are in the wrong tax bracket. That is what the debate has been about tonight and that is one of the key reasons that members on this side of the Chamber are not supporting the legislation. 
The second point I want to make is to refer to the Minister in the chair Peter Dunne who put on record tonight his reputation around tax cuts. I ask that Minister whether he was in Cabinet on 19 April when Dr Cullen put up a paper. Clause 23 stated: “To maintain our commitment to the long term fiscal objectives I may need to make some adjustments to future budgets. These are likely to be that we do not adjust tax thresholds in the medium term”—meaning in 3 4 5 years—“thereby retaining fiscal drag and potentially allowing tax to GDP ratios to rise slightly… Accordingly this paper seeks Cabinet’s agreement to rescind our previous decision to adjust income tax thresholds. Within the projection period (ie from 2011/12 onwards)”—so we are looking out a fair way ladies and gentlemen—“we will adjust tax thresholds for inflation but some portion of fiscal drag might need to be retained to finance our decisions.” 
The Minister in the chair put on record his position on tax. I would suggest that he was part of Cabinet on the day that it signed that particular minute and I believe that that does not accord with his record on taxation. 
I will finish by making a comment on Dr Paul Swain— 
Hon Dr Michael Cullen 
: Dr Paul Swain? 
CHRIS TREMAIN 
: —well he is a learned member—and some of the comments that he has made tonight. The member wanted to know why National was not supporting the wider taxation provisions even though parts of the legislation may have some merit. Well we do not like Labour’s tax policy. We do not like it specifically or generally. We do not like where the economic direction of the country has gone under this Government and that is why we are not supporting the legislation. If National supported this legislation it would be the equivalent of our standing up here and supporting the general direction of the Labour Government. We do not buy into Labour’s vision and on that basis we do not support this legislation. That is the answer the member is looking for. 
We have learnt something tonight though with regard to Supplementary Order Paper 167 which Mr Swain is very keen on. It brings about some redundancy payment advantages. I have not looked at the fine print of that Supplementary Order Paper but I wonder whether there are any lower tax rates for silver platters given as redundancy payments. Mr Swain who is very learned and has had a long career in Parliament is moving on to better things. 
Hon Dr Michael Cullen 
: In that case you get 3 months’ severance pay when you lose. 
CHRIS TREMAIN 
: I thank the member; I will be looking forward to that. 
Christopher Finlayson 
: Is he standing against you in Napier? 
CHRIS TREMAIN 
: He is not standing against me in Napier. We put that challenge out there but Dr Cullen would not take it up. He was quoted in the newspaper as saying that Labour would be choosing an excellent candidate in the seat of Napier that that candidate would have his 100 percent support and that that candidate would win Napier in the next election. It will be interesting to see whether the candidate who was chosen was the candidate whom Dr Cullen was actually thinking about at the time. Never mind; that remains to be seen. But I am not being arrogant about it; it will be a hard campaign in Napier and I am looking forward to it.