Goldsmith Paul: General Debate 
Text is incorporated into the Bound Volume 
Goldsmith Paul: General Debate 
[Sitting date: 27 March 2013. Volume:688;Page:8999. Text is incorporated into the Bound Volume.] 
PAUL GOLDSMITH (National) 
: 
 It was interesting to hear this week that Labour is considering going back on one of its major election platforms of last election: GST off fresh fruit and vegetables. “If we can’t afford policies”—we heard Mr Shearer say—“then they will have to go.” Now apparently “GST off fresh fruit and [vegetables] is one of the things we’re looking at.” Is it not amazing? 
As I recall that was one of the major election promises of 2011 pushed by Phil Goff. He stood there he roared and he bellowed: “Labour’s plan is a bold one. It’s a game-changer. It’s about fairness”. He gnashed his teeth he thundered and he went puce with rage. We had Mr Cunliffe standing on top of a bus with a loud hailer roaring that this was going to bring social justice to New Zealand. We had Mr Parker and I am not quite sure—I do not think he was convinced about it. He did not say too much. Mr Parker I am not too sure about but Mr Shearer certainly said that if the goods and services tax did not apply to fresh fruit and vegetables then they would be much cheaper for ordinary New Zealanders. 
Now we hear that maybe that is not going to work after all. It was going to cost about $317 million—that was the guess—and Mr Shearer says: “Well can we do it all? I doubt whether we can. We are going to have to reprioritise.” So he is prevaricating massaging the media and warming us up for a climb-down on one of Labour’s key platforms. What has happened to the Labour Party? What has happened? This party used to be one of conviction and principles. When Roger Douglas led the party it was firm and it was brave but now it seems to have a leader with a spine like a jellyfish and it is going back on all sorts of things. He is refusing to say what is going to happen. 
I note that there are one or two coalition problems ahead. It was interesting to read the response of Labour’s potential coalition ally the Mana party. One fellow the economic justice spokesperson—I cannot remember his name—said: “It is hard to think of a more week-kneed pathetic announcement.” So that is not so good for relationships between Mana and Labour. I am not sure where the Greens are on this but I am quite confident—and I call upon them. I call upon the Greens there to make clear their views on what they think about GST on fresh vegetables. 
Labour abandoned it because it was a crazy idea. I mean if it is supposed to bring about social justice then why would you take the GST off imported pawpaws sold at my local fruit and vegetable shop Jack Lum’s in Remuera? How is that going to advance social justice in this country? If fruit and vegetables why not water? But not bottled water—normal water. If you are going to have GST off potatoes why do you not have it off staples like pasta? But not fancy pasta. Or bread—plain stuff but not Vogel’s. Or we could have clothing—why should we not have the GST off clothing? But not fancy clothing—school uniforms perhaps but not private-school uniforms. We should take the GST off books because education and moral improvement of the country is very important—but non-fiction books not trashy novels; maybe New Zealand novels— 
Hon Member 
: What about biographies? 
PAUL GOLDSMITH 
: —and biographies possibly. But we would be in a terrible tangle and we would be undermining one of the great strengths of the GST and the tax system in this country complicating a beautifully simple solution. 
And what would happen? If Labour takes the GST off fruit and vegetables the revenue falls and so what would it do? It would not reduce spending. We know that Labour never reduces spending; it only increases it. So it would have to put the GST up on everything else or it would increase income taxes on work and that would be the perfect way to grow this economy! We should give credit where credit is due. This week Labour members appear to have abandoned what was a crazy tax policy and I think they should go the whole hog and get rid of the capital gains tax idea that they have as well and then bring themselves back to a sensible tax policy that we could all support in this House. 
Before I finish I did want to draw a contrast if I could indulge the time of the House between Labour’s tax policy and the tax policy of this Government which is focused upon building growth sound economic policy returning to surplus reducing Government spending as a percentage of GDP rebalancing the tax system away from discouraging work through overly high income taxes and building a more productive and competitive economy through welfare reform and the Business Growth Agenda. All these things we are doing and we can sign up to and that is what is building a brighter future for this country. That policy is one that I stand for and am here to support. I think that this country in very difficult times and in very difficult international times is in good shape. We have had 3 percent growth over the last 12 months and there would be many countries around the world that would be grateful for that. 
The debate having concluded the motion lapsed.