SpeechSIMON O'CONNOR (National—Tāmaki): Oh look an unexpected pleasure to have to speak on this bill but there is nothing more exciting in this House I am sure particularly for the Labour Party than to discuss tax because as we know the Labour Party loves tax and this bill shows it abundantly—an increase of tax for what they deem to be the highest earners and I think that's a really important thing for the public to understand. On this side of the House and certainly for myself I've got no problem actually of people paying their fair share but the issue is not so much the tax rates it's the fact of who the Labour Party decides has to pay their fair share and where they're going to set that bar.For those tonight who are thinking Oh it's great those rich people are going to get taxed. That's all fine." Of course the thing is that next week next month next year they might be in the gun—amongst other reasons of course because the Government is not taking on very sensible ideas from the National Party which is that we need to actually address tax bracket creep. So that for people at home is that as you begin to earn more—well not in real terms; of course any wage rise you've got has been completely wiped out completely wiped out by inflation but as your income supposedly increases—you move tax brackets and I think unfortunately some Kiwis are going to get a bit of a fright in their back pocket. Unfortunately the Government has attempted to phrase this as an equity argument and why I think it's unfortunate is not because the concept's a problem I mean go equity. You know there we go—a bit of an endorsement and a bouquet for the Greens and left. Equity's fine except the problem is that the Labour Party has delivered no equity; things are getting much much worse. I just intimated at least one of them which is the fact that inflation is way outpacing growth around wages. And yes it's all well and good that unemployment is low. I mean partly that's not really a surprise. We've had our country sort of imprisoned and locked down for two years. We have not allowed any migrants in the country. That possibly has an impact. I also think we've moved a number of people on to the benefit but that's probably a debate for another night. But fundamentally it's great these people have got jobs but as I say inflation's eating away at whatever they're earning. That underlines then probably the second major problem. Actually I hadn't quite finished on the equity comment that this tax change all these tax changes—I see some of them come actually on 1 April which I thought was some sort of joke and that's an incredibly bad pun. But equity is getting worse in this country. It doesn't matter if you look at child poverty the fact that we've got 26000-plus people now on the housing register gang crime you name it—things are getting worse. And so here again we have a terrible illustration coming from this Government of talking one thing and delivering the polar opposite. So let's delve a little bit into the rental changes because—well sorry the taxation changes particular around the brightline test and around the inability now—to stress that—the inability for landlords to take their interest payments on mortgages as an expense. My honourable colleague David Bennett highlighted that. I mean in just about any other circumstances you are taxed not only on income but there's allowance for what are legitimate expenses—and interest on a mortgage has been a traditional expense. Now we may disagree on that. That's perfectly fine from the Labour side. But what really got stuck in my throat was the argument that these changes are going to help the rental market. In fact they went as far to say that they were already making improvements to the rental market. I know I almost had a coronary which is probably not a good thing to have. Things are getting worse. If you are a renter in my electorate and that's in Auckland your rent is going up—I think is it $70 a week? I might actually have the figure wrong; I know it's no lower than $70. It's going up and up and up. I have constituent after constituent coming to me tenants saying it's getting almost if not completely impossible. And landlords to be fair don't want to put the rent up but they're humans they have to pay their own bills. They are responding to a Government which is making things less equal. I've actually mentioned it in the House before particularly around rentals particularly around this taxation suggestion that the more that this Government tries to interfere in the market they just make things worse. And so here we have more changes supposedly to make things better. We heard from one of the speakers tonight one of the honourable members from the Labour Party that one of the reasons they think this tax—sorry it's not strictly a tax; it's more that they're not allowing interest on mortgages to be used as an expense. They think it's a good thing because that's going to force landlords to sell the property and then somehow a first-home buyer or a person who is really struggling to purchase is just going to walk on in and buy that house. There's two practical and fundamental problems with that. Firstly the other side will probably find they won't sell. People will just sit on their property. They just won't rent it out. It just becomes not worth it and unfortunately I'm hearing that from a number of landlords: "It's just become too expensive too difficult. I'm just going to sit on the house." The second practical problem—and granted it's probably come from my electorate and I will acknowledge it's not a representative demography. You know Tāmaki is by and large very well-to-do and wealthy if you looked at any of the statistics. But just to use that as an illustration when Bob and Mary sell that house that they've been renting out it ain't going to be affordable. That's something that the Government might want to keep in mind because all that's going to happen—and I suspect we will see—is more legislation from this left-wing Labour Government to try and force its view on to others. You heard a hint of that from again other honourable members who have spoken. They've talked about housing as a social necessity: "We the Government will decide what you can do with your house or houses. The greater good of the community deems that we will now dictate to you including through this little piece of legislation"—well actually it's not too little; it's quite a tome—"how you can and cannot operate your house."The final point I would make and it's really just a simple and fundamental one and yes I think members have rightly expressed tonight that debates around taxation exciting as they are—Greg O'Connor I can see it on your face—do highlight the difference between the left and right of politics. The two principles really are ultimately on this side of the House we believe that individuals and families can make the best decisions about how they want to spend their money. It's why we are always trying to seek ultimately how we can deliver more money to Kiwis. In fact I make an erroneous statement. It's not even "deliver". We just want to allow Kiwis to keep the money they have legitimately earned; keep the Government out of this. But no we have a left-wing Labour Government. They believe they understand they know how to spend your money better than others. I know that's a trite statement that always comes out from the right. But you know the thing is that what comes out of the right is right. It's sort of a hint in the name you know right? You know another bad pun—that's two. The last point I would make—the last point I would make—is that ultimately—Greg O'Connor: Three strikes Madam Chair.SIMON O'CONNOR: I'm actually trying to just excite things here in this House tonight as we talk taxation. The ultimate one ultimately—the last point I would make and people in New Zealand should never forget this: when any Government it doesn't matter if it's left or right goes out and says to you "Look all these amazing things we're delivering by these extra taxes." that is simply you the public being bribed with your own money. Never forget. No Government makes a cent. They tax it off hard-working Kiwis day after day. I'm conscious on this side of the House every time we make a spending promise every time we spend that money we have generated that from Kiwis. And so when Jacinda Ardern and others—Grant Robertson—get up and talk about how wonderful they are and doing housing subsidies here and employment things here and Working for Families there in themselves they're great. But New Zealand you're only being bribed with your own money particularly when it comes to the likes of Working for Families I'm afraid to say. You work hard you pay all your taxes which go into the great circus which is Working for Families and then they spit some of it back at you. Maybe I'm a simple man. I am an O'Connor. Looking at Greg O'Connor again—well maybe we're simple men. But do you know what? Why take the money off us in the first place? Anyway with that attempt at somewhat levying which I suspect was taxing on all concerned that's No. 3 I commend—no I don't actually. I'm not going to commend the bill to the House. That's probably the final point. I don't know I can condemn the bill Mr Whip but I cannot support this bill tonight."