Cunliffe David: Taxation (International Taxation Life Insurance and Remedial Matters) Bill — In Committee 
Cunliffe David: Taxation (International Taxation Life Insurance and Remedial Matters) Bill — In Committee 
[Volume:656;Page:6015] 
Hon DAVID CUNLIFFE (Labour—New Lynn) 
: 
 The deputy chair of the Finance and Expenditure Committee is faster than a speeding bullet. It is wonderful to have her peroration on the subclauses about Kyoto emission units. But Part 3 is where the debate really starts to hot up. I felt in a bind because we really needed to debate Part 2 at greater length but Mr Chairperson exercised his discretion and brought us right to the political heart of the matter. 
The bill is Minister Dunne’s personal statement to the nation. It is part of his legacy. But he is not finished yet. He will no doubt be the Minister of Revenue for many more Governments and he will not rest until he has raised GST. That is what this part applies to—GST—and it is a timely and sobering reminder to the Committee that the Government is bent on raising the rate of GST. 
A little bit of a phenomenon is being observed around the country—that is the ability of the Government to get itself elected on a programme that is so bland— 
Chris Tremain 
: Very good question—who raised it from 0 to 10? 
Hon DAVID CUNLIFFE 
: Yes OK I know. Who brought in GST? Coming back to the bill it says right here in clause 518—the proof is here—“Goods and Services—”. [ 
Interruption 
] Members opposite asked the question; they would be very well advised to hear the answer: “Goods and Services Tax Act 1985.” 
When Peter Dunne was but middle-aged GST was first introduced. He was a member of the Government then and he is the Minister of Revenue now. He has come a long way but he has a lot further to go—2.5 percent further in fact if the newspapers are to be believed. 
 We need to observe two things. The first thing is that when stuck with a politically unpalatable decision the Prime Minister will identify a brave junior Minister normally the leader of a minority party—say Rodney Hide—and let that Minister off the leash. But when the Minister goes too far out comes the scrub-cutter and takes the Minister off at the knees which in Mr Hide’s case is particularly challenging. But there was no such problem with the venerable Mr Dunne who on this matter has many more miles yet to travel. 
The second phenomenon we observe is that the difficult decisions are not contained in the National Party manifesto. Oh no—Steven Joyce has seen to that. All policy was stripped out of the manifesto on Mr Joyce’s instructions. The Crosby/Textor - Joyce manual states: “If you can say it don’t write it down particularly in an email and if you can nod don’t say it particularly not in a manifesto.” That is the way with GST and the Tax Working Group. All the controversial ideas will be inured from politics. No way will they be part of the Government’s programme. They are the objective and conscientious product of the most learned doyennes of tax policy from out in the private sector. 
The proposal will emerge to raise GST to 15 percent and Minister Dunne will champion it as per the harbingers in Part 3 of the bill. Out will go Minister Dunne and Steven Joyce will blow the whistle. He will get above the trench head into the machine gun fire of public opinion take a few brave steps before collapsing in a hail of polls— 
Chris Tremain 
: I raise a point of order Mr Chairperson. This Shakespearean performance is very nice but I would like the member to focus on the part of the bill at hand which is about emissions units GST-exported second-hand goods in clauses 522 and 523 and GST loyalty points. I would appreciate your indulgence in this point of order. 
Hon DAVID CUNLIFFE 
: Speaking to the point of order I was particularly referring to GST on the loyalty points of the Minister who is earning loyalty points with Mr Joyce for his brave carriage of the GST issue emanating from the Tax Working Group. 
The CHAIRPERSON (Eric Roy) 
: There is a bit of tolerance around this area of debate but I think all members know that at the end of the day if I think the discussion is not pertinent then closure motions are accepted. I ask the member to continue. 
Hon DAVID CUNLIFFE 
: I shall take a more detailed view for the next few minutes. What is really important in fact occurs in clause 521 which relates to the time of supply of GST. We ask ourselves how long it will take for the ruminations of the Tax Working Group to come as far as the public domain in respect of GST which is the subject matter of this part I say to Mr Tremain. How long will it take the Committee to deliberate on it? Again we find ourselves inescapably drawn back to the main consensus provisions of the bill which are that the process was too constrained. 
If in tax bills to come Minister Dunne brings forward his brave attempt to raise GST we put down two markers right now. First the Labour Party does not support raising GST on New Zealand’s low-income earners unless they are more than fully indemnified from the regressive nature of any such change. Second if there is going to be any debate about GST at all we need to have a full and proper process unlike the discussion of GST contained in Part 3 of the bill.