Collins Judith: Taxation (KiwiSaver and Company Tax RateAmendments) Bill — Second Reading In Committee Third Reading 
Collins Judith: Taxation (KiwiSaver and Company Tax RateAmendments) Bill — Second Reading In Committee Third Reading 
[Volume:639;Page:9450] 
JUDITH COLLINS (National—Clevedon) 
: 
 It was very interesting to hear the representative from New Zealand First tell us that he supports this Budget as I recall that in 2002 that party opposed the Budget because it had a fuel tax of 5c a litre. We hear today that New Zealand First supports this Budget which has a fuel tax of 10c a litre. So that is inflation is it not? Talk about a turn-round and flip-flop—New Zealand First has just done a major one. 
When I look at the cost of this Budget I realise the people who are not going to benefit are the poor. In today’s  
New Zealand Herald 
 I 
saw comment from the unionist Laila Harré. Do members remember her? The headline stated: “Workers party fails to help the poor”. She is right on that one. There is nothing for people who are struggling other than a 10c a litre increase in their fuel costs. That is what the Budget does for the people of Botany for the people of Dannemore and for the other people of east Auckland. There is nothing for them except that they will get a 10 percent hike in their fuel bills. That cost will carry right the way through to food bills and to every other sector of the community—to transport costs generally. That is exactly what the Budget means. Those people do not get access to a rail line; they get to pay for a rail line twice. They get to pay extra rates in order to pay for other people to use a rail line and they get to pay higher fuel bills so that other people can get access to a rail line. That is simply not fair. 
When I read on I saw what Richard Prebble had to say. He pointed out that this Government is now taking $20 billion a year more out of New Zealand taxpayers than National did in 1999. Our taxpayers are now paying $20 billion that they should not have to pay. Richard Prebble is right. In that time what has happened? We see 700 people leave this country every week to go and live in Australia and they do so because there they are paid more their taxes are less and they have more incentive to save. 
KiwiSaver will appeal to some people that is for sure: people who are already saving money. When I heard Dr Cullen say yesterday that after 45 years of saving people will have $400000 I thought that may seem a lot of money. But I will tell the Committee something. In the early 1980s we bought our first house for $33000. When we bought that house for $33000 it was a really big stretch. Today that house even without our improvements would not sell for less than about $600000. So if somebody is to be told that after 45 years of renting he or she will be able to buy a house I do not believe that is a legitimate promise to make. 
It is also unbelievably unfair for people to be told the Government will just take the money out and the person’s employer will pay and that will be great. It is not great and the reason is that most businesses in New Zealand are those of small-business owners. Most people do not own their business through a company; most people pay a personal tax rate. Those people will receive nothing at all out of the deduction in company tax. What they will get though is to pay for the Government’s election bribe. That is exactly what it will be. I think about people with small businesses in my electorate—panel beaters and motor mechanics—who will face another cost. What will happen? It will go straight to their accountant and it will put up their compliance costs. Then when employees go along and say they need some extra money because fuel costs have gone up the boss will say: “I’d love to give you some extra money but I’m already giving it to you in KiwiSaver. Just remember that for every dollar that I have to give you now I also have to top up your KiwiSaver. So how about we do a little deal?”. 
That is what will happen. Little cash deals will happen and little things like that will encourage tax avoidance. That will not help the system at all. More people will be doing anything they can to get as much cash as possible out of the system rather than going through the official system. This whole system is about making our taxation system more complicated. Taxation systems must be very very simple.