Little Andrew: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeLittle Andrew: Oral Questions — Questions to Ministers[Sitting date: 10 May 2016. Volume:713;Page:10879. Text is incorporated into the Bound Volume.]1.ANDREW LITTLE (Leader of the Opposition) to the Prime Minister: Does he stand by his statement “There’s actually quite legitimate business in New Zealand for servicing foreign trusts”?Rt Hon JOHN KEY (Prime Minister): Yes. As Michael Cullen said in 2005 when the disclosure rules were being developed: “The government has sought to develop policy that works for all concerned one that enables New Zealand to co-operate with other tax jurisdictions while not disrupting the legitimate financial transactions of foreign trusts.”Andrew Little: Are foreigners able to use New Zealand - based trusts to dodge tax overseas?Rt Hon JOHN KEY: Anyone can use the New Zealand tax rules. There are obviously mismatches around the world and we see that potentially with multinationals and others. But interestingly enough when it comes to ensuring that people are paying their tax including foreign trusts the House might like to know that of the Panama Papers data release of the 500000 times that Mossack Fonseca is linked to either a company a trust an individual or a reference fewer than 200 are foreign trusts registered in New Zealand. And by the way the Inland Revenue Department (IRD) has cross-referenced them and all of them are disclosed to ensure that they pay their fair share of tax. [Interruption]Mr SPEAKER: Order! Before I call a further supplementary question I just want a little less interjection from my left.Andrew Little: How does he reconcile his claim that his close personal adviser had assured him that he had no links with Mossack Fonseca with today’s revelations that show that Mr Whitney has—[Interruption]Mr SPEAKER: Order! I sought some further cooperation from my left. I am now asking for the same sort of cooperation—less barracking through the question as it is being delivered—from my right. Would Andrew Little like to start that question again.Andrew Little: Thank you Mr Speaker—Hon Paula Bennett: Sorry sir for laughing at his joke.Andrew Little: Yeah yeah. You have got plenty to laugh at Paula—plenty to laugh at on your side. [Interruption]Mr SPEAKER: Order! If I do not get any assistance from my right-hand side then I will be looking to ask a member to leave.Andrew Little: How does he reconcile his claim that his close personal adviser had assured him that he had no links with Mossack Fonseca with today’s revelations that show that Mr Whitney has had dealings with that firm?Rt Hon JOHN KEY: Firstly I have got no responsibility for Mr Whitney or any other New Zealander. But I stand by the statements that I have made in relation to Mr Whitney. I think incrimination by insinuation could be a very dangerous game because I took a moment to just look in the database and guess who is a beneficiary of one of the trusts? Oh Greenpeace International. And guess who else is mentioned—Mr SPEAKER: Order! [Interruption] Order! The Prime Minister will—[Interruption] Order! The Prime Minister might think that he can go on but when I stand to my feet he certainly cannot go on. [Interruption] Order! If I have to ask—[Interruption] Order! No the member will resume his seat. If I have to ask either the Prime Minister or the Deputy Prime Minister to leave I will not hesitate to do so.Andrew Little: Does he see any issue with the people lobbying the IRD to protect foreign trusts having connections to Mossack Fonseca?Rt Hon JOHN KEY: Firstly I reject the last part of it. But I do not see any issue with a lobby group speaking to the Government. In fact I am sure that the education sector and teachers speak to the education Minister. I am sure those who are interested in health and safety speak to the workplace Minister. I am sure the Council of Trade Unions talks to the Labour Party. Here is breaking news: people who work in an industry might actually want to talk to the Government about it. If you are going to hang them for that there are going to be a lot of hangings taking place.Andrew Little: Did he personally push through the zero rating of tax on foreign funds in 2010 over the objection of officials from the Ministry of Economic Development or put another way does he recall saying: “I have told Gerry to deliver me a paper that has zero rating of funds”?Rt Hon JOHN KEY: No.Andrew Little: I seek leave to table a copy of an article from the New Zealand Herald of 2 December 2010—[Interruption]Mr SPEAKER: Order! When a point of order is raised it is to be heard in silence and that particularly applies to noise coming from my back right-hand side. But if it is a newspaper article then members can find it if they want. [Interruption] Order! Is Mr Robertson ready?Andrew Little: Is he satisfied with the Government’s oversight of foreign trusts when Mossack Fonseca used a bankrupt Elvis impersonator to provide a sham address for a player in an Iraqi bribery scandal all without his Government noticing?Rt Hon JOHN KEY: Yes it is true. There is an Elvis impersonator that is named but there is also an impersonator for the Leader of the Opposition asking questions about it.Andrew Little: Does he oppose New Zealanders and multinationals using another country’s tax laws to dodge New Zealand tax given that he allows foreigners to do the same thing here?Rt Hon JOHN KEY: I cannot talk for Greenpeace Amnesty International and the Red Cross but what I can say is that every country has a different tax system. There is no global tax system and there are mismatches around the world—that is true. The Government is working on trying to resolve those issues through the OECD and we have been leading a lot of that work. And I hope we are successful in that because that will help actually robustness around the world. But New Zealand’s tax laws are very well set.Andrew Little: Why does he say that New Zealand is falling down the Corruption Perceptions Index on his watch?Rt Hon JOHN KEY: There are a number of factors but New Zealand is ranked extremely highly—[Interruption] We are third I think—[Interruption]Mr SPEAKER: Order! Prime Minister there is no point in answering a question asked if they do not want to hear the answer.