Nash Stuart: Taxation (Budget Measures) Bill — In Committee 
Text is incorporated into the Bound Volume 
Nash Stuart: Taxation (Budget Measures) Bill — In Committee 
[Sitting date: 20 May 2010. Volume:663;Page:11164. Text is incorporated into the Bound Volume.] 
STUART NASH (Labour) 
: 
 It is interesting to see Rahui Katene in the Chamber; I welcome her to the Committee. I am interested to see how she votes on the Taxation (Budget Measures) Bill because she had a member’s bill pulled out of the ballot that seeks to remove GST from healthy food. 
Hon Trevor Mallard 
: And Kentucky Fried Chicken and chips. 
STUART NASH 
: Yes. At the moment we are debating a tax bill to increase GST from 12.5 percent to 15 percent on all items: healthy food petrol electricity—everything. Am I right in hearing that that member voted for this bill? 
Hon Ruth Dyson 
: The Maori Party did. 
STUART NASH 
: The Maori Party voted for this bill. 
Hon Trevor Mallard 
: Only three of them did. 
STUART NASH 
: Where are the other two? Where is Hone Harawira? Hone Harawira puffs out his chest— 
The CHAIRPERSON (Eric Roy) 
: Members cannot refer to the absence of members from the Chamber. 
Hon Trevor Mallard 
: Ask why they didn’t vote. 
STUART NASH 
: I ask why they did not vote. Are ructions going on in the Maori Party? Is this the split of the marriage between the Maori Party and National? Members should watch this space and the public should watch this space. The press will have picked up on the fact that only three Maori Party members are voting for this bill. I thought they had more than three members. Two Maori Party members are not voting for this tax legislation. That says something about what is happening here. It says something about the dynamics. 
I wonder why two Maori Party members are not voting for this legislation. When I look at the statistics I see that 71 percent of people in Maori electorates earn $40000 or less. The median income of all those in the Maori electorates is $21900. What do we think that an increase in GST will do to the people who have an income of $21900? I will tell members what it will do. It will increase the price of petrol. It will increase the price of apples. It will increase the price of fruit vegetables Kentucky Fried Chicken rates—everything. It will increase the price of everything for everyone in those Maori electorates yet three people in the Maori Party are voting for this legislation. That is astounding. 
It is quite amazing that Rahui Katene is the one down here providing the votes for this bill. As mentioned that member has a bill that has been drawn out of the ballot to remove GST on healthy food. That is quite astounding. 
I move to Part 3. We have already had a good debate on Part 3. I have some concerns with the Minister’s argument because the huge rate of inflation will erode the real value of wages and therefore their spending power. This Government increased the minimum wage last year. What did it increase it by? 
Metiria Turei 
: 25c. 
STUART NASH 
: The Government increased the minimum wage by 25c. How will that help people cope with 5.9 percent inflation? 
Craig Foss 
: Look at page 63: nominal wages are up 14 percent over the next 4 years. 
STUART NASH 
: I say to Mr Foss that we are talking about people on the minimum wage. If we look at that member’s electorate we see that 76 percent of people in the Tukituki electorate earn under $40000. They got absolutely nothing in tax cuts last year and they will be hurting this year. I challenge that member to hold a public meeting with all his constituents with the 76 percent of constituents who earn under $40000 to see whether he can sell this Budget to those constituents. Will he tell them that inflation will eat it away that they will not get much at all and that GST will eat it away? What are those 76 percent of constituents—and let us not forget that the median income is only $22500—going to get out of this Budget? They will get nothing but pain and heartache. 
It will be a winter of discontent. Mr Boscawen has mentioned increasing power prices. Those increases will not come from the emissions trading scheme; they will come from the fact that Mr English said to Mr Brownlee that he wants a greater dividend out of State-owned enterprises. What does that mean? It means an increase in power prices. This will be a winter of discontent for many many Kiwis and I tell members that leading up to this election many people will say that they voted for a change but this is not the change that they voted for. I would like Mr Foss to organise that public meeting. I will come along and see how he sells this package.