Wilkinson Kate: Budget Debate 
Wilkinson Kate: Budget Debate 
[Volume:663;Page:11300] 
Hon KATE WILKINSON (Minister of Labour) 
: 
 Budget 2010 is a great Budget. History will show that it is one of the best Budgets that this country has seen. What a great Budget. Labour took us from the best of times to the worst of times leading us into one of the worst recessions in history and we are now leading New Zealand out of it. This Government is focused on growing the economic pie and providing the right incentives for New Zealand families to get ahead. We want a bigger pie so everyone will get a bigger piece. Labour seems to be stuck firm and fast in the politics of envy. All Labour members do is pick and pick at the same old pie complaining that no one trusts them to slice it any more. Well they are right. 
This Budget focuses on lifting long-term economic growth to create jobs boost incomes raise living standards and help Kiwi families get ahead. It keeps us on track to reverse the deficit and get the books back into surplus notwithstanding the legacy left by Labour which squandered some of the best opportunities that this country has seen. 
The Minister of Finance has pulled off a huge coup with this Budget as has been shown by the huge levels of support from both the public and political commentators. I think we would struggle to count how many column inches and sound bites have been filled with praise and compliments for the decisive and courageous direction this Budget sets for the New Zealand economy. There is one quote that appeals to me. It is feedback from the  
New Zealand Herald 
 and it states: “The worst bit about the Budget was listening to Mr Goff respond to it in Parliament.” I think that probably says it all. Let us look at more quotes. The  
Dominion Post 
 editorial states under the heading “Bold step towards a better economy”: “Without changes to make it a more attractive destination for investment and skilled workers New Zealand was facing a further slip down world economic tables. Mr English has made a promising start to arresting the trend.” 
That is one quote; we have others that I would like to put on the  
Hansard 
 record. Bernard Hickey states: “This is the most comprehensive and coherent reform of New Zealand’s taxation system in more than 25 years. It goes a long way to tilting the economy back towards productive investment and away from property investment … Overall I’d give it 8.5 out of 10.” That is not the only one though. Another states: “Today’s Budget is a major step in the long-term aim of reversing this resource drain with the added hope that some of our best and brightest and wealthiest will consider a return home.” 
This is a great Budget. It has seen the biggest tax reform in 25 years. It delivers on four objectives. It rewards effort and helps families get ahead—something Labour does not know much about. It helps us attract and retain skilled people in New Zealand—something Labour did not know much about. It encourages savings and productive investment—something Labour did not know much about. It discourages excessive borrowing consumption and property speculation—something Labour does not know much about. 
This Budget makes the tax system fairer. It strengthens the tax rules about property investment and it gives the Inland Revenue Department extra resources for enforcement. If we look at the Budget we can see that it is a good Budget for New Zealanders. We can look at some examples. Let us take a family with a couple of children earning $76000 a year. They receive Working for Families and pay $300 a week in mortgage repayments which do not incur GST. After the tax package they will get a household tax cut of about $46 a week. They may pay an extra $21 a week in GST but they will be $25 a week better off. They will be $25 a week better off under National than they would ever be under Labour. 
Let us take an average income earner on $50000 a year. He works as a plumber and earns the average wage. He pays $120 a week in rent and saves $50 a week towards a deposit on his first home. After his tax package he will get a $29 tax cut. He will pay $13 more in GST but he will be actually $16 a week better off. Even retired couples receiving superannuation who have no other investments but who own their own homes will get a tax cut of $12 a week after the tax package. They will have a $10 a week increase in New Zealand superannuation but will pay possibly $11 extra in GST. Overall national superannuitants—retired couples—will be $11 a week better off. 
The Labour Party is a party of envy. Its members say that this Budget is just a Budget for National’s rich mates. Well I say that for some who are wealthy this is probably not the best Budget they have seen. If a couple is on a high income and has several investment properties and is claiming depreciation on those investment properties to be offset against their income tax the chances are that after this tax package they will pay more in income tax not less. So it is fallacious for Labour members to suggest that this tax package is for the rich and not for the many. 
All manner of avenues have been used in the past to avoid paying tax— 
Hon Dr Wayne Mapp 
: We’ve closed those avenues. 
Hon KATE WILKINSON 
: —and we are closing them. That should be good. That is great. It should be great news even to those on the other side to those on the Opposition benches. But no they still whinge and moan and complain. 
This is now a fairer tax system. There is a fairer tax system in place to ensure that property investors and landlords are not writing off their tax obligations through depreciation so that they may also put some money into other productive assets and ventures. New Zealanders deserve a Government that wants them to be successful. We are aspirational for New Zealanders; we want them to get ahead. They now have a Government that wants New Zealanders to be successful. 
This Budget sets the Government in a direction that provides the right incentives for people to work hard and to stay working here in New Zealand. Workers will now have more money in their pockets and National trusts them with money in their own pockets because we want to give them incentives to spend and use their money and to save and invest their money as they see fit. We trust them to spend their own money. 
Hon Member 
: That’s radical! 
Hon KATE WILKINSON 
: I know. It is a radical thought that we might trust New Zealanders to spend their own money! 
Hon Darren Hughes 
: You’re still taxing 30 percent. If tax is a problem get rid of the lot. 
Hon KATE WILKINSON 
: This Budget is not just about tax cuts; it is not just about tax cuts. 
Although the average wage earner will be about $15 a week better off and the average family will be about $25 a week better off this Budget is about spending money where we think it matters so that we can have a productive New Zealand. We are spending $321 million on science over 4 years—$321 million; that reflects the faith and confidence we have in the science industry in New Zealand. We will spend $2.1 billion on health for front-line health priorities over the next 4 years. There will be an extra $512 million in 2010-11. We are spending more and more on health because that is important to us and to New Zealanders. We are spending $1.4 billion extra for better schooling and early childhood education over 4 years. Education is important to us the National Government and to New Zealanders. We are spending $1.45 billion in 2010-11 on infrastructure projects: to upgrade rail to upgrade the wider network and to lift prison capacity. We are even spending money on conservation on cycleways and on camping grounds. This is a great great Budget.