Webb DuncanDr DUNCAN WEBB (Labour—Christchurch Central): Thank you Mr Speaker. First of all it's always hard to follow the Minister the Hon David Parker because he is so thoughtful so thorough so perceptive and just so clear. So he hardly leaves me anything to tidy up but thankfully we've got Mr Bayly who I can follow with ease—where I understand. But the thing I find most offensive about his speech is his continual harping on about hard-working New Zealanders" as if bus drivers aren't hard-working New Zealanders cleaners aren't hard-working New Zealanders and people who are in the care industry aren't hard-working New Zealanders. He seems to think that only people who earn a lot of money are hard-working New Zealanders and therefore they deserve more back. Well on this side of the House as the Minister said we think that people who earn a little bit more should pay a little bit more and that's what this progressive tax system does. And as the OECD said this is not the time for tax cuts. This is the time to hold fast and have a rational tax system. As for the interest deductibility question the Finance and Expenditure Committee did have a good look at this question. Mr Bayly was in there when we got special advice—we asked specific questions from the IRD and he knows as well as I do that the IRD said that inflationary effects skew interest deductibility and that the real interest is usually a lot lower. And so that means that in many cases people are getting fundamentally a significant tax rate. They are deducting more expense than they are really incurring and that's what this fixes. And let's face it as I'm sure will be said by other speakers here many people who have rental properties are in there not simply for cashflow returns the money they make off rent; they are in there for long-term capital appreciation. The real income they make is made when they sell their house. And Mr Bayly himself said they are doing this so that they have an asset an appreciating asset for their retirement. And so they get a double win: a tax break on their interest they claim more than they actually incur in real terms; and a tax-free capital sum at the end of the investment period. This addresses that skewing of the market. It says that's not appropriate the market isn't actually operating correctly as my friend Mr Clark said and what we need to do is to straighten that out and straighten the interest rules out. And that's what we've done. That will correct as we are seeing already the out-of-control housing market and slow down some of that price appreciation. That's a good thing for people who want to buy their own home.And of course we've made sure the rules allow for people to get tax deductions for building new homes because that's something we want to encourage. But trading in homes for simple capital appreciation is not something we want to encourage. We want people to be able to afford and get into their own homes.And of course we looked at a whole lot of other things in there GST rules; apportionment rules; cryptocurrency was interesting; and also that sales suppression software—absolutely offensive software that seeks to thwart the tax system by essentially lying and defrauding the tax system by creating fictitious sales records. There's penalties in there for that. That also is a very very good thing. I absolutely commend this bill to the House. Kia ora."