Foss Craig: Taxation (Budget Tax Measures) Bill — In Committee Third Reading 
Foss Craig: Taxation (Budget Tax Measures) Bill — In Committee Third Reading 
[Volume:654;Page:4040] 
CRAIG FOSS (National—Tukituki) 
: 
 I rise quickly in the third reading of the Taxation (Budget Tax Measures) Bill. This is a bill that comes from necessity from the Budget yesterday that came from necessity itself. That necessity is driven by the ongoing increase in spending of the previous administration which was increasing by 50 percent per annum yet its revenue was increasing by only 25 percent per annum. There is a fairly obvious hole that even those members opposite with their various master’s degrees in business should comprehend. That is a disaster waiting to happen that is why this bill comes out of necessity and that is why it is so urgent that this legislation comes into place as soon as possible. 
Members around the Chamber talked about the mortgage diversion provision. It is very interesting to hear members opposite questioning that because I was on the Finance and Expenditure Committee when the mortgage diversion was pulled into the KiwiSaver Bill at the last minute as a bit of a trade-off. The Labour members on the committee the Hon Paul Swain and company were not in favour of it at all and the discussion and debate revolved around the points that the Hon Peter Dunne has made in this House. So for members opposite to say that it should go back to a select committee for some reason does not make sense particularly in light of the fact that only 600-odd people have picked it up. 
I will make a couple of other points. One thing is that everyone talks about tax. This Budget and this Taxation (Budget Tax Measures) Bill is actually avoiding a tax—that is the tax of a lower credit rating for New Zealand. That tax would be about 1.5 percent on everyone’s mortgage and credit card and that is if we still maintained the ability to raise funds. We are an indebted nation unfortunately. We owe $130 billion - odd. Our debt increased massively to the tune of about $40 billion to $50 billion under the previous administration. The measures we are taking in the Budget and in this bill which is part of that Budget will save New Zealand an incredibly large amount. For the life of me I cannot understand the scoffing we heard from the Hon Phil Goff about the importance of a credit rating to New Zealand. 
It may seem distant to the taxi driver; that is fair enough. But there is an implication on New Zealand. For those who have to borrow to survive who have been struggling through the last 9 years—and particularly through the last 3 years when spending was out of control—this is their reward. It will save them an extra margin on their borrowing costs. 
I will make just one further point. I cannot go without mentioning the incredible foresight that Mr Cosgrove has discovered in hindsight. Mr Cunliffe has the same disease. I notice that other members and colleagues who have perhaps more business nous than they do tell us that now is the time to buy anything. It raises the question as to why things were bought back when they were more expensive. Again I ask why then those members did not sell things back in June 2008 when the IMF report they keep alluding to came out. Why did they not sell some superannuation assets? Because their value has lost 30 percent. They moan on about the Superannuation Fund but under their governance that fund lost 40 percent of its value. I cannot for the life of me understand the revisionist theory that those members suddenly have and I really do not think that they believe it themselves. They are just trying to look for some headlines because they are trying to find their way through this Budget and there is very very little for them to criticise. Interestingly on top of all those members’ speeches they are voting for the bill. On that note I commend the bill to the House. Thank you.