Nash Stuart: General Debate 
Nash Stuart: General Debate 
[Volume:653;Page:2306] 
STUART NASH (Labour) 
: 
 I wonder—and this is a test for members—what country Robert Reich a former US Secretary of Labor under President Clinton was referring to on 2 March when he said that a budget would “represent the biggest redistribution of income from the wealthy to the middle class and poor this nation has seen in more than 40 years. … We can basically say goodbye to the philosophy espoused by Ronald Reagan and Margaret Thatcher.” Was he referring to England? Potentially. Australia? He could have been. Most countries in the Western World? Probably. It could be nearly every country except New Zealand because the economic philosophy of the National Government is rooted in the discredited theories of last century. 
It is no coincidence that the current National Minister of Finance is the same Minister of Finance who got it so wrong the last time there was a mini-recession in New Zealand—last century. He is still getting it wrong—yes he is. These tax cuts are simply a nasty farce. Here we are in times of economic hardship when by the National Government’s own admission unemployment will double—if we are lucky. Yet these tax cuts deliver 30 percent by value to the top 3 percent of taxpayers. Is that fair? Seventy percent of all New Zealand taxpayers will miss out on a tax cut. Is that fair? Seventy percent of New Zealanders who have children will get nothing. Is that fair? Not at all! The Prime Minister—National’s wonderful Prime Minister—will get an extra $120 a week in his pay packet yet those from McGehan Close will end up with nothing. Is that fair? 
Hon Members 
: No! 
STUART NASH 
: No it is not. This supply-side economic philosophy as practised by Mr English’s National Government was discredited last century. No longer do the majority of economists central bankers or finance Ministers believe that paying the wealthy more stimulates the economy; the less fortunate have no money to spend on increased goods and services because they are concentrating on trying to make ends meet in places like Rotorua. The tax cuts introduced today are not stimulatory because in times of recession the wealthy tend to either retire debt or save; they do not go out and spend money. The trickle-down theory simply does not work. 
Mr Obama—with whom the tweeter Key compares himself—the Labour Party and the vast majority of Governments around the world now know what Mr Key and Mr English do not know: Keynesian economic theory is now recognised as the only philosophy that can mitigate the risks of this growing recession for global citizens in which group New Zealanders are included. This philosophy of social democratic Governments around the world is about delivering tax cuts to those who need them as per that quote by Robert Reich. By creating demand through the provision of money into the pockets— 
Colin King 
: What about people keeping more of what they earn instead of taking it out of the provinces? 
STUART NASH 
: Who did Economics 101? Did Colin King ever do Economics 101? He should go back and read his text books and should go and talk to his constituents about what they think when they find out that 70 percent of them who have children will get nothing. Equity does not just signify shareholding in a company; equity is about delivering services in a fair and just manner to all those who require them. I tell Colin King to go and talk to his electorate and see what it has to say. 
Not only have Mr Key and Mr English robbed—I say “robbed”—70 percent of New Zealanders of their fully deserved tax cuts but they have also robbed this country and its citizens of an optimal future by slashing the provisions of KiwiSaver. It is unbelievable. Employers who were going to contribute a maximum of 4 percent of an employee’s salary to top up their KiwiSaver accounts will now have to pay only 2 percent of that employee’s salary. That means that any KiwiSaver participants who are earning under $50000 will have to top up their accounts voluntarily in order to receive the maximum Government contribution. Shame! Once again the ordinary Kiwi battler who works hard to put food on the table has been screwed. Parents will have to say: “Sorry son there are no rugby boots this year because there are no tax cuts there is no increase in my KiwiSaver contribution and there is no food in the cupboard.” 
I say to the mothers and fathers of New Zealand that they will have to wait only 2½ long years before they get a chance to change this Government. Let me ask the people of New Zealand again: 70 percent of all New Zealand taxpayers will miss out on a tax cut; is that fair? 
Hon Members 
: No!