Boscawen John: Taxation (Budget Measures) Bill — In Committee 
Text is incorporated into the Bound Volume 
Boscawen John: Taxation (Budget Measures) Bill — In Committee 
[Sitting date: 20 May 2010. Volume:663;Page:11140. Text is incorporated into the Bound Volume.] 
JOHN BOSCAWEN (ACT) 
: 
 We often have banter in the Chamber and when members with the call pick up on the comments of other members it is recorded in  
Hansard 
. One particular comment was made this morning that was not picked up in  
Hansard 
 but I think it is very important that it goes on the record. My colleague Sir Roger Douglas said that no matter what one thought of the Budget the reality is that the media are reporting it in a good light. If I heard correctly I heard Steve Chadwick say: “Wait and see.” I think that Steve Chadwick is absolutely right just like I think her colleague Carmel Sepuloni is right. She said that all the hype will die down in 2 or 3 days and then people will be faced with reality. People will not have to wait until 1 October for the increase in GST because the cost of living is going up from 1 July. That is when the emissions trading scheme is coming in that is when Treasury has forecast that electricity will go up by 5 percent per year and that is when Treasury has forecast that petrol will go up by 4c a litre. 
We are debating Part 1 of the Taxation (Budget Measures) Bill today. This part increases the rate of GST. Trevor Mallard proudly got up and showed to the Committee the increases in GST that people will pay on various incomes. My message this morning is to National members. Steve Chadwick is absolutely right when she says: “Wait and see.” There is no reference to the impact of the emissions trading scheme in people’s average incomes. 
I come back to page 9 of the Budget document. We have just heard from the co-leader of the Green Party who said that this is actually a subsidy from the poor to the rich. Well I say to Metiria Turei that at least those people earning less than $40000 a year get something. The Budget talks about an increase of 0.7 percent and they will have to give back only 0.4 percent. So although they will not get much at least they will get something. But we should look also at the big group of people in the income bracket of $40000 to $85000. The Budget forecasts here in black and white that they stand to get a net 0.4 percent out of it. Treasury forecasts that that whole benefit will be wiped out by the emissions trading scheme. It is no wonder that members of the National Party’s grassroots are revolting against the emissions trading scheme. It is no wonder that a resolution was put at the central North Island conference of the National Party last week calling on the Prime Minister and the Minister of Finance to suspend the emissions trading scheme. It is no wonder that the Tamaki electorate where I live—Allan Peachey is my local MP—have a remit before the National Party’s Auckland conference in a fortnight’s time. 
I say to Labour that Steve Chadwick is right and that Carmel Sepuloni is right. But Labour members should get out and criticise the emissions trading scheme. They talk about inflation of 5.9 percent. They should go out and tell the people that electricity is forecast to go up by 5 percent. They should go out and tell people that the price of petrol will go up. People will see those things soon. Carmel Sepuloni is right: people will not be fooled for ever. I say to members of the National Party that people will see it a lot earlier than some people think they might. 
I will explain to Louise Upston—who represents the electorate of Taupo which is an area that has huge amounts of forestry—why GST is going up. Well the reason it is going up is that there is an allocation of an extra $1 billion to people who planted trees in the 1990s and early 2000s and also in the 1970s and 1980s. Those people planted trees and are now retrospectively being given over $1 billion of credits for those trees. It is a tragedy because there is no guarantee that the Kyoto Protocol will be extended. There is no guarantee that New Zealand will have any commitment beyond 2012. 
In this measure we have a wealth transfer. It is not necessarily to rich people; it is to people who planted trees in the 1990s and early 2000s without any expectation of this massive subsidy. Although the National MPs in this House may want to put their heads in the sand the members of National Party are not dumb. They see it Paul Henry on  
Breakfast 
 this morning sees it and Steve Chadwick sees it. She says that we should wait and see. Time will tell and people will realise that there is no net gain to them. Yes there is redistribution.