Mackey Moana: Taxation (Budget Tax Measures) Bill — First Reading Second Reading In Committee 
Mackey Moana: Taxation (Budget Tax Measures) Bill — First Reading Second Reading In Committee 
[Volume:654;Page:3985] 
MOANA MACKEY (Labour) 
: 
 It is always nice to see Mr Power in the House dealing out his own special brand of fantasy in the way that only he can do. He said that it was amazing that Labour was supporting this first piece of Budget legislation but that is because the legislation is repealing National policy. The first piece of Budget legislation we have in this House is repealing National’s election promises. That is why Labour is supporting this bill so for National members to claim that they find it surprising that we would do that just shows that they have no idea what it means to be consistent. Labour has been consistent on this issue. We said during the election campaign that National’s tax promises were unaffordable. National members told us that we were scaremongering. When we went through urgency just before Christmas—and the legislation was rushed through with no select committee process—we said that the tax cuts could not be afforded and National said that that was scaremongering. Well less than half a year later members should look at where we are. We have a bill repealing the very tax cuts that we said were unaffordable—the very tax cuts that those members said could be afforded—yet they are calling us inconsistent for supporting this legislation. 
I have one prediction: even though Labour is supporting this legislation so that it has widespread support across the House Gerry Brownlee will still stuff up the management of the House. Even though Labour is supporting the bill Gerry Brownlee will still struggle to get it through under urgency. 
Mr Simon Power went on to talk about Standard and Poor’s and the fantastic announcement that we had today. Well of course Standard and Poor’s would say that because that agency effectively wrote this Budget. Standard and Poor’s got to see the Budget before the National caucus saw it. It got to see it before the people of New Zealand did. National stands up and acts surprised that Standard and Poor’s liked it but when they were the only people who were allowed to see it before it was delivered that should hardly be surprising. Mr Key said it was great that the Budget got such a high rating from Standard and Poor’s and that is not a bad thing of course. But so did Enron as Mr Goff pointed out in his speech. So what we have from Standard and Poor’s is a triple A rating for Enron for subprime mortgages and for Budget 2009. I can see why Mr Power would be very very excited about that. 
Here we are; it is déjà vu in this House. I remember the 1990 election. I was at high school. I went out delivering pamphlets locally. I remember the election promises made by the National Party at that time and all the things it was going to do. Basically it adopted Labour Party policy and then added a whole lot of stuff on just like it did in 2008. Then National got into power and it claimed that it never saw the recession that everyone else saw coming. National members said they never knew it was going to be as bad as this and they used that as an excuse to back down on their election promises. 
When it comes to Tory Governments the more things change the more they stay the same. Here we are again. Mr Key was either the only person in the entire world who did not see the global recession the financial crisis that was coming which would be unusual given his background or—and this is the more likely scenario—he did see it coming and knew how bad it was going to be but he made those election promises anyway because he wanted to buy the election just like National did in 1990. It has done so again in 2008. When we in Labour stood up on the campaign trail to point this out and said we would have to shelve a whole lot of election promises that we were going to make because we knew that we were not likely to be able to afford them— 
Craig Foss 
: You didn’t say that! 
MOANA MACKEY 
: I say to Mr Foss that we did. We also said that we would do a mini-Budget before Christmas. Because things were changing so quickly we needed to introduce a stimulus package. National told us that we were wrong. National chose to coast and wait until May this year as was its prerogative. It did not have to do a Budget before Christmas. Now National expects the people of New Zealand to seriously believe that it did not know that its tax cuts were unaffordable when it promised them. Labour knew that this legislation was coming. We knew that it was coming when we were forced under urgency before Christmas to pass those tax cuts—a full third of which by the way went to the top 3 percent of income earners. 
Hon Ruth Dyson 
: What? 
MOANA MACKEY 
: A full third went to the top 3 percent of income earners. How is that a stimulus for our economy? How is that a stimulus? Not only does it not help the low and middle income New Zealanders who need that extra money right now but those earners were the people who were going to go out and spend it. They were the people who were going to spend that money and stimulate our economy. But no National members had some favours to repay from the election campaign so they rejigged the tax cuts that Labour gave to low and middle income New Zealanders and gave them to the top 3 percent of income earners. Then for the rest of New Zealanders we are here now debating this legislation just like Labour said during the election campaign we would be doing and just as Labour said when National was passing its tax cuts under urgency before Christmas. National called it scaremongering but the truth has been shown here today. This legislation repeals National’s tax cuts. 
What did John Key say about this when he was desperate to get elected? He said that his very first commitment—his personal guarantee—was to strengthen the economy increase after-tax incomes and ensure that Kiwis could get ahead under their own steam by reducing personal taxes on 1 April 2009 1 April 2010 and 1 April 2011. He then went on to say that unlike Labour National would not cancel its tax cuts. So what is this from the party that stood up on the election campaign trail and said that it would not cancel tax cuts unlike Labour? Let us remember that Labour gave significant tax cuts during our term in Government. We are the only party that ever gives business tax cuts ironically. We have given tax cuts for research and development and we have given tax rebates for families through the Working for Families package. What has National done when the rubber hits the road what is it doing in its first Budget? It is cutting the tax cuts. Labour is supporting this legislation because we are consistent. We said that it should not be done when the legislation was passed before Christmas. We opposed the legislation for the tax cuts that we are now repealing. So not even 6 months later after rushing through tax cuts under urgency here we are in urgency again cancelling those tax cuts. How efficient! 
Given John Key’s position on the election trail perhaps instead of being called the Prime Minister he could now be called the “Prime Misleader”. He knew very well that we would be here today. He is a nice guy he smiles a lot and yesterday he quoted “On the Good Ship Lollipop”. As Bill English said he bounces from cloud to cloud. I think he thought his personality would pull him through this. The fact is that this is a rort; this is an absolute rort. The people of New Zealand were absolutely conned at the last election again—just like they were in 1990. It is really tragic because we should be here tonight discussing legislation that creates jobs. We should be here— 
Amy Adams 
: We are! 
MOANA MACKEY 
: Cancelling tax cuts that were lied about during the election campaign does not create jobs. I am sorry; it does not. We should be here passing a package that creates jobs and supports jobs. We should be here passing legislation that will increase wages not decrease wages. We should be here reinstating the research and development tax credits that National foolishly cancelled last year. These are tax credits that help our most innovative companies tax credits that will help our exporters and tax credits that everyone in New Zealand agreed with apart from the National Party. 
David Bennett 
: How can you afford tax cuts? Tell us how you’re going to pay for them! 
MOANA MACKEY 
: Those are the policies that will grow this economy I say to Mr Bennett. Mr Bennett went out on the campaign trail and said that his party’s policy on the Fast Forward Fund Ltd was stupid and that the Fast Forward Fund Ltd should stay and he was right in that respect. The Fast Forward Fund Ltd has been replaced by a sickly and insipid replacement. This is from the party that said that the replacement would be as good as or better than Labour’s. That was another con; another broken promise. This is a shameful shameful night for the National Party and a very sad night for New Zealand.