Cunliffe David: Taxation (Urgent Measures and Annual Rates) Bill — In Committee Third Reading 
Cunliffe David: Taxation (Urgent Measures and Annual Rates) Bill — In Committee Third Reading 
[Volume:651;Page:228] 
Hon DAVID CUNLIFFE (Labour—New Lynn) 
: 
 I do want to begin this intervention by acknowledging Sir Roger Douglas. For many of us probably on both sides of the Chamber his earlier work in Parliament was the stuff of legend—or nightmare depending on one’s perspective. But he is one of the few people who have left an indelible imprint on this country’s history and it is certainly a matter of great moment to see him back. 
It is also very interesting to take this opportunity to reflect on the modus operandi that has been demonstrated in his first intervention. He started by redefining the question. The question we started with was: how do we make people better off through tax policy? He forgot that question and answered his own question which was: how do we narrow the gap between income bands or between income earners and beneficiaries? So that was step 1—redefine the question. It was done very quickly and done without drawing much attention to it. 
Step 2 was “put aside beneficiaries”. I think we should all frame that as a quote because 800000 people vote and they do not want to be put aside. They have families and they have needs and we are here to protect them with our Green colleagues to make sure that they are not put aside. But the ACT Party wants to put aside beneficiaries and let us only hope they cannot do too much damage to New Zealand before they are thrown out. 
Step 3 was to say that he wanted to help those within the 21c tax bracket. Yet that seemed to deliberately fly in the face of the fact that at the moment under existing law they will pay a marginal rate of 12.5c in the dollar. Under the Act the legislation that is being proposed that he is supporting they will pay 21c in the dollar. So he has ignored the contradiction and redefined the question. He wants to help people by almost doubling their marginal rate of tax! It is extraordinary but he moved so fast through the contradiction that I am glad I was taking notes. 
Step 4 of course is the fact that his argument is completely useless because Bill English has already contradicted it in writing. Bill English has answered the question—definitively and on the public record—that people are $750 million worse off because that is what it would cost to fund the motion that Dr Cullen put on the Table taking him at his word that no one would be a loser. So I guess that step 4 in Sir Roger’s mojo was to ignore the proof that was already lying on the Table. 
Step 5 of course was for us to recall that Sir Roger’s idea of a progressive policy was a 20c in the dollar flat tax. That was the high-water mark of ideology that got him thrown out of the Labour Party. The impact of that would be the same as the impact of elements of this tax bill. Raise the tax on the poor to 20c in the dollar and cut the tax on the well-off almost in half from 39c or 37c to 20c and somehow that makes everybody better off! The last time I read an argument like that was from Voltaire who said: “We live in the best of all possible worlds by definition.” Well I hope he had a good whiteboard because when one writes down the logic of the argument it ties itself in knots real quick. 
Hon Dr Michael Cullen 
: You can’t read Roger’s handwriting when he does it. 
Hon DAVID CUNLIFFE 
: Yes. We welcome him back. We are glad to have witnessed this extraordinary logical knot and we are happy to have the opportunity not only to untie this knot but to untie every other knot that he tries to tie New Zealand up in. 
But I will get back to this bill. What New Zealand knows definitively is that this is an ugly Christmas present for those working Kiwis who will be part of the $750 million bill that the Government itself tonight certified. I say merry Christmas to beneficiaries merry Christmas to part-time workers merry Christmas to 57-year-olds with a part-time income as they move towards retirement and to those over 65 who are keeping themselves going and putting a lesser burden on the State. Merry Christmas—the Grinch has arrived. 
The CHAIRPERSON (Hon Rick Barker) 
: I call the Hon Pete Hodgson. 
Hon John Carter 
: I raise a point of order Mr Chairperson. It is normal to alternate the calls from side to side and our very good member Katrina Shanks actually sought the call at the same time as Mr Hodgson and Mrs King and for some reason you chose not to do what is normal convention in this case and choose from the Government. I just draw your attention to the fact that Miss Shanks had called. You now have recognised Mr Hodgson and will no doubt have to proceed with that but I just draw your attention to the fact there was a call from this side of the House. 
The CHAIRPERSON (Hon Rick Barker) 
: The member is correct. I have already given the call to the Hon Pete Hodgson; the call will stand.