Ross Jami-Lee: Taxation (Annual Rates for 2015-16 Research and Development and Remedial Matters) Bill — First ReadingText is incorporated into the Bound VolumeRoss Jami-Lee: Taxation (Annual Rates for 2015-16 Research and Development and Remedial Matters) Bill — First Reading[Sitting date: 10 March 2015. Volume:703;Page:2110. Text is incorporated into the Bound Volume.]JAMI-LEE ROSS (National—Botany): In the speeches we have had so far from the Opposition members I have heard them complaining and moaning about things they would like us to be talking about. Well let us just be reminded that this is a tax bill and let us just be reminded that the Labour Party on the other side is the big-spending big-taxing party of Parliament. If the Labour members really want to talk about the issues that New Zealanders are concerned about it is the big-spending monster sitting on the other side of the House and if it were putting forward this tax bill the tax that New Zealanders would be facing would be substantially more.Hon David Cunliffe: What hogwash! Nobody believes you.JAMI-LEE ROSS: I see David Cunliffe interjecting on the other side. Can I say to Mr Cunliffe while I have an opportunity please do not go up those kauri trees because that will provide an incentive for those kauri trees to be felled. So Mr Cunliffe stay away from the kauri trees and stay away from interjecting in Parliament here tonight. I know he is interjecting because he does not like the bill but when Labour proposed about $18 billion of extra spending under his watch which led to thousands of people staying home and not voting Labour he was ashamed. I am glad that Labour is not putting forward this tax bill because that would not be good for New Zealanders. Taxpayers would be very concerned about the bill they would be facing. It is one that we are proud to be bringing to Parliament and one that implements some changes.The Minister of Revenue talked about two new tax measures to support business research and development. Labour talks a lot about research and development but we are the Government that is delivering on research and development for New Zealanders. Through the systems we have put in place there is more research and development taking place in this country and there are more opportunities for research and development to take place. That is important for the country. Innovation is something that this country is very good at. Innovation is something that this country thrives on and prospers on and it is important that research and development is supported by the Government. This Government is delivering in that area. We have already committed to spending $566 million—Hon David Cunliffe: Less than half the OECD average—miserable.JAMI-LEE ROSS:—over 4 years on research and development to grow business research and development. If Mr Cunliffe got out there and talked to real people instead of trees he would probably find that there are people out there who are prospering through research and development grants we are putting in place. Innovative Kiwi businesses in this country are investing in research and development and they will benefit from the tax measures that we announced in Budget 2014 that are put in place in this bill.Loss-making start-up companies will be able to cash out all or part of their tax losses from research and development expenditure. Although all businesses will be allowed tax deductibility for research and development black hole expenditure is currently neither deductible nor able to be depreciated.Hon David Cunliffe: What about Chatham Rock? No rock star.JAMI-LEE ROSS: They keep going on the other side. I feel sorry for them—I feel sorry for them. I feel sorry because they are at a loss as to what to produce for New Zealanders. The member over the other side cannot handle the fact that he was resoundingly defeated last year—resoundingly defeated last year. [Interruption] Well Mr Assistant Speaker if he is going to interject I am going to give it back because New Zealanders sent him a message. I am happy to send him a message here in the House tonight as well.When it comes to this tax bill I want to get back to research and development because it is something that this Government is putting in place new measures to assist with. The two initiatives that are going through in this bill are together estimated to return a net $58 million in tax to innovative companies over the next 4 years and both are part of the Building Innovation stream of the Government’s Business Growth Agenda. The Government is targeting an increase in business research and development to 1 percent of GDP by 2018 to help build long-term growth and prosperity for New Zealand.We heard previously from Mr Robertson about what he believes electorate MPs will be hearing from their constituents. Well I happen to be in an electorate with a very big manufacturing sector that is thriving. I know that members sitting alongside me are in electorates in strong regions that benefit hugely from growth through the innovation that research and development helps to bring to their regions. If anyone wants to hear about what electorate MPs over this side of the House hear about it is the fact that we are supporting business. We are putting in place the economic settings that allow business to grow the economic settings that allow jobs to be created and the economic settings and the tax policies that allow businesses to invest more in their companies and invest more through research and development.We are the Government that is delivering for New Zealanders. This Taxation (Annual Rates for 2015-16 Research and Development and Remedial Matters) Bill is another area in which we are delivering for New Zealanders. With over $1.5 billion in expenditure over 4 years through the research and development grants and then further through the tax changes in this bill we are seeing improvements taking place.Hon David Cunliffe: Desultory performance—desultory.JAMI-LEE ROSS: What is that Mr Cunliffe?Hon David Cunliffe: I say it is rubbish.JAMI-LEE ROSS: It is not rubbish. Mr Cunliffe rubbish was less than 25 percent in the polls. That was rubbish Mr Cunliffe. That was rubbish Mr Cunliffe and that is why he is sitting on that side of the House and not on this side.Debate interrupted.