Adams Amy: General Debate 
Adams Amy: General Debate 
[Volume:673;Page:19826] 
AMY ADAMS (National—Selwyn) 
: 
 You know after sitting here over the last 2½ years I am starting to think that Labour members actually quite enjoy Opposition because they can sit there and promise everything to everyone. They will be all things to all people. But suddenly as we head into the election cycle they have gone “Oh! We have got a $10 billion to $12 billion hole and people are starting to ask how we will pay for that.” “Oh!” they said; “We haven’t thought about that. Quick let’s have a whip-round. I know—a capital gains tax. That will do it.” Those members heard somewhere that it would raise $4.5 billion for them and they thought that would be good—that would work for them. With the detailed economic analysis of members over there they took the figure of $4.5 billion and said “We’ll have that.” 
But the problem with that is that Labour members are economically illiterate. They have not got an economic clue between them. They have not stopped to consider not only that it would take 15 years to get to the level of $4.5 billion—15 years and they will also not be back in Government in anything like that time if they make it back at all—but also that that sum is based on a 33 percent rate of tax when they are promising 15 percent. It is based on an accrual mode and they are talking about a realisation mode and it will not be there in time for them to fulfil their promises of doing everything that National is doing and more and more spending. They will very quickly realise that it is like all their other plans: long on talk short on delivery. This is another example of why Labour cannot be put in charge of the books of New Zealand why Labour has no idea of how to run an economy and why Labour was the Government that left us with a decade of deficits after the best economic conditions the world had ever seen. This plan of Labour’s this grand scheme at best would raise $700 million—at best. But here is another thought: if property prices are not going up there is no gain. What will the plan make for Labour then? The big bagel! What is worse if property prices go down it will cost Labour money. It will cost it money as investors file their tax returns and claim for the multi-billion dollar losses on their property. Labour will find itself in a bigger hole. 
If there is a capital gain who will be hit the hardest by this tax? Let me tell members who will be hit hardest. It will be superannuitants those on fixed incomes and the people who create jobs. What Labour will do is tax superannuitants and tax the wealth creators in this country. Why? It is so that Labour can build a bigger public sector and so that it can have more policy analysts telling them what to think. That is Labour’s endgame. Labour will ask who in this country is successful. It will go out there tax the bejesus out of them hand out more welfare grow the Government and put more policy analysts around it. That is all that Labour will deliver. It has gone back to its core Labour beliefs. Labour members talk about being fair. What does “fair” mean to them? It means making everyone as poor as everyone else—making everyone equally poor. Labour’s fundamental principle is that equity is achieved when everyone is as poor as the lowest common denominator. 
That is not what this Government stands for. This Government gets behind success celebrates aspirational New Zealanders and celebrates people who are putting their capital into the productive economy creating wealth raising incomes and creating jobs. We do not go out there and penalise the successful; we celebrate winners we reward winners and we encourage productive growth in this economy. But let me tell members this—this is really interesting. Labour now is holding out this capital gains tax as a panacea for all ills. I just want to read this: “The Government is not interested in a capital gains tax either in the short or the long term. Basically it is political suicide”. Who did that come from? Michael Cullen. He said it was political suicide now or in the long term. Here is another quote I quite like: “[The New Zealand Labour Government] … agrees … that [New Zealand] would not be better off with a general capital gains tax …”. 
Dr Cam Calder 
: Who said that? 
AMY ADAMS 
: David Cunliffe. Is not that interesting? 
Dr Cam Calder 
: When was that? 
AMY ADAMS 
: That was in 2002 in Government. Have we not heard this before—that New Zealand would be worse off with a capital gains tax? I say to Mr Cunliffe that that is quite right. It is the most sensible thing I have heard that member say for a while. 
Dr Cam Calder 
: He must be in quite a big hole. 
AMY ADAMS 
: A big hole I would have thought. Michael Cullen was reassuring us that Labour had no interest in a capital gains tax in the short term or the long term because it would be political suicide. Wise words. But what do we have now? We have an Opposition that has promised everything knows it cannot deliver and is desperate.