Williams Andrew: Customs and Excise (Tobacco Products—Budget Measures) Amendment Bill; and Bills Therefrom — Third Readings 
Text is incorporated into the Bound Volume 
Williams Andrew: Customs and Excise (Tobacco Products—Budget Measures) Amendment Bill; and Bills Therefrom — Third Readings 
[Sitting date: 16 October 2012. Volume:684;Page:5839. Text is incorporated into the Bound Volume.] 
ANDREW WILLIAMS (NZ First) 
: 
 I take a call on behalf of New Zealand First for the third reading of the seven bills arising from the Customs and Excise (Tobacco Products—Budget Measures) Amendment Bill. New Zealand First will support the first bill the Customs and Excise (Tobacco Products—Budget Measures) Amendment Bill but we oppose the six other bills in relation to indexation. In relation to this perhaps we could just explain again for the benefit of the people out there who may be a little bit confused as to why there are seven bills wrapped into this. The other six bills basically serve to remove the CPI indexation from tobacco in terms of tobacco in relation to the CPI so that those receiving increases in student allowances those receiving increases in children young persons and their families support those paying income tax on Working for Families support New Zealand superannuitants and also social security and war pensioners who have the annual CPI adjustments will find that they will not get the full CPI because the CPI will under these bills exclude tobacco from their CPI assessment. 
In that respect it is somewhat discriminatory that many many New Zealanders—thousands of New Zealanders—who have nothing to do with smoking and are non-smokers in a sense will be receiving a small amount less in their pensions because of the fact that tobacco is going up by a significant amount—10 percent each year—but that is being removed from the equation when the CPI indexation is assessed. It is in a sense also penny-pinching in that this has not occurred in the past and it is most unusual for a Government to start actually pulling out and removing certain aspects of the economy in order to help balance its books. Therefore it is being discriminatory and it is punishing many of those who can least afford even a small adjustment in the CPI indexation. 
This week has been the national conference of the Royal New Zealand Returned and Services Association. It is very interesting that one of the major concerns of returned servicemen and servicewomen has been the aspect of their pensions. This Government this week has announced some measures to support the war pensions review being conducted by the Law Commission. So it is somewhat ironic that while on the one hand we are trying to assist the likes of the war pensioners and indeed many other pensioners on the other hand we are penny-pinching by making a small adjustment to their CPI because of the fact of cigarettes going up in price by 10 percent per year for the next 4 years. That is somewhat disappointing and I think was unnecessary. 
It perhaps reflects on a Government that at the moment is having to look at every last cent to balance its books which included as we have referred to before taking something like $14 million from the paper girls and paper boys of this country in a new taxation regime this year. Again it does get back to the whole concept of the “Fagin Budget”. When you start to actually attack those who are most at risk and those who are most vulnerable and cannot really stand up for themselves such as the young children of this country such as the pensioners such as the war pensioners of this country then it is a sad day. 
Perhaps this would have not been necessary and these penny-pinching measures would not have been necessary had the Government not given the significant tax cuts to the very wealthy people of New Zealand 2 or 3 years ago when several billions of dollars in taxes were returned to those who could certainly afford to pay their taxes and as a result we are having to put up with these penny-pinching policies now. Certainly the head of Telecom did not need a $5000 a week reduction in his tax the Prime Minister did not need a $1000 per week reduction in his tax and many other very wealthy New Zealanders did not require those. So in a sense I am certainly somewhat disappointed in the country of New Zealand where we have been known to be a world leader in our social welfare and where we have been a pioneer in providing a good healthy social welfare State and supporting those in need and giving them a hand up not just a handout. But it is disappointing to see these six other aspects of this combined legislation which is just basically attacking those in need who can least afford it. 
But getting back on to the actual tobacco excise side of it New Zealand First has supported the increase of the tobacco tax but with reservations. We have said in this House before that we hope that the $528 million that is taken over the next 4 years with the annual 10 percent increase in the excise tax is not just again put into the general big black hole the big Treasury coffers to try to balance the books but that in actual fact this has been taken for the purpose of trying to reduce the levels of smoking and trying to help people with addictions in smoking and certainly to also assist with our health aspects in terms of those affected by smoking. In that respect we have said in this House before and we have put it to the National benches that we in New Zealand First certainly will be monitoring it to ensure that programmes are followed through and we certainly hope that the associate health Minister Tariana Turia will ensure that funding is put into the programmes to support all those in need of support who are afflicted by smoking. That includes education and it includes resources to help with smoking cessation programmes. It includes having innovative ideas to try to curtail the level of smoking. It also means that we will have greater education hopefully out of some of this funding to stop young people getting into smoking in the first place. 
 We also want to ensure that there are other measures taken in terms of smoking and it is interesting that there are still many areas within the smoking situation that are not being addressed—and it was raised by the select committee—such as the anomalies with duty-free cigarettes being so very cheap and people are encouraged to bring them in. We heard stories of places particularly the Pacific Islands and Asia from where people are encouraged on arrival in New Zealand to buy large volumes of cigarettes for family and friends. Again that sends the wrong message. Surely in this country if we are trying to reduce smoking and this measure is trying to reduce the levels of addiction then why are we not also looking at the duty-free side which Australia across the Tasman has done? 
Therefore I hope the Government is not just glossing over this and is not just looking at this as one more way to make money to make tax out of those who can least afford it and that it is genuinely taking this as a disincentive for people to take up or continue smoking and that it is genuinely interested in the health aspects. But we do have our doubts and we do wonder whether the health aspects have at any stage taken any priority in all this and whether in fact much of that $528 million will see the light of day in terms of positive things from some of those funds. So New Zealand First will support the first bill but will be voting against the other six bills.