Nash Stuart: Questions for Oral Answer — Questions to Ministers 
Text is incorporated into the Bound Volume 
Nash Stuart: Questions for Oral Answer — Questions to Ministers 
[Sitting date: 11 August 2011. Volume:674;Page:20560. Text is incorporated into the Bound Volume.] 
10. 
STUART NASH (Labour) 
 to the  
Minister of Finance 
: Does he believe the tax system is fair for all New Zealanders? 
Hon BILL ENGLISH (Minister of Finance) 
: 
 The tax system is certainly fairer than the one we inherited from the previous Government although there is always room for improvement. For instance we have brought in changes that increase the effective tax rate on investment property which was not being taxed under the previous Labour Government netting just short of $1 billion of extra tax per year; closed loopholes that allowed well-off families to claim social assistance— 
Stuart Nash 
: I raise a point of order Mr Speaker. It is a primary question; I asked whether it is fair for all New Zealanders not fairer. 
Mr SPEAKER 
: The member makes a reasonable point. The question asks whether it was fair and it did not ask why so I think we have had sufficient answer. 
Stuart Nash 
: Was the Government’s own Tax Working Group wrong when it said “a large component of economic income is not taxed—capital gains.”? 
Hon BILL ENGLISH 
: It was stating a fact. Members will note that the Tax Working Group came to the conclusion that it would not recommend implementing a capital gains tax and it certainly would not have backed the messy complex high-spending high tax high borrowing— 
Stuart Nash 
: I raise a point of order Mr Speaker. All I asked was whether the Government’s Tax Working Group was wrong and he said it was not wrong. I do not need a further explanation. 
Mr SPEAKER 
: The member—[ 
Interruption 
] A point of order is being considered and there is merit in the point being made. Questions are to be answered without further embellishment according to the Standing Orders. The more brief the question and the less political the question the less room there is for embellishment in the answer. 
Stuart Nash 
: Was the Government’s own Tax Working Group wrong when it said “There are equity and fairness arguments that can be mounted in favour of a capital gains tax.”? 
Hon BILL ENGLISH 
: I have not actually seen that quote but it may well have said that. Making tax policy is always a trade-off between fairness efficiency and complexity. Unfortunately the Labour Party’s package loses on all three. 
Stuart Nash 
: I raise a point of order Mr Speaker. I think you know what my point of order is going to be. 
Mr SPEAKER 
: The Minister has sat down already. 
Stuart Nash 
: Was the Government’s own Tax Working Group wrong when it said “A capital gains tax is generally said to support the integrity of the tax system by reducing opportunities for tax planning and tax avoidance.”? 
Hon BILL ENGLISH 
: It may have said that but it clearly lacked the certainty of its convictions because its members could not come to agreement about a capital gains tax and did not recommend implementing one despite the arguments it raised for it. 
Stuart Nash 
: I raise a point of order Mr Speaker. 
Mr SPEAKER 
: I realise the point the member is going to make on this occasion but I believe that it would be unreasonable to say that the Minister can say only yes or no because to give some context that is helpful in ensuring the answer is meaningful is not outside the Standing Orders. On this occasion I believe that is what the Minister was doing. That was not unreasonable. It was not superfluous embellishment and it was not attacking the Opposition; it was just pointing out that although the Tax Working Group may have expressed that view it did not carry it through into its recommendations and that is a perfectly valid context to put around an answer. 
Hon Clayton Cosgrove 
: I seek leave to table the Tax Working Group report given that it may be of assistance— 
Mr SPEAKER 
: All members have the Tax Working Group report. 
Stuart Nash 
: Is it really fair that a working person earning $50000 a year pays around $8000 in income tax while a person who sells an investment property for $50000 profit does not pay any tax on that income? 
Hon BILL ENGLISH 
: That may well not be correct because there are quite a number of people who trade in investment property. But if the member is trying to make a general point about fairness there was nothing fair about Labour’s tax system— 
Mr SPEAKER 
: No the Minister has no responsibility for Labour’s tax system. 
Hon Craig Foss 
: I seek leave to table a statement on the fairness of Labour’s GST proposal from Heinz-Wattie which states: “It would discriminate against local producers”— 
Mr SPEAKER 
: What is the source of this statement? 
Hon Craig Foss 
: The source of this statement is an article in  
Hawke’s Bay Today. 
Mr SPEAKER 
: We do not seek leave to table current newspaper articles.