Lotu-Iiga Peseta Sam: Taxation (International Investment and Remedial Matters) Bill — First Reading 
Lotu-Iiga Peseta Sam: Taxation (International Investment and Remedial Matters) Bill — First Reading 
[Volume:668;Page:15136] 
PESETA SAM LOTU-IIGA (National—Maungakiekie) 
: 
 It is my privilege to speak on the first reading of the Taxation (International Investment and Remedial Matters) Bill. This bill is another demonstration of the Government’s focus on lifting New Zealand’s economic performance. It has been 2 years yesterday to the day since this Government took over the Treasury benches and it has been a busy Government. It has been a busy Government that has taken on a number of pieces of legislation particularly in the area of enhancing the tax system and promoting economic growth. The Government has been busy promoting better smarter public services and lifting the education standards of young New Zealanders. The Government has also boosted infrastructure in those 2 years through spending on roads warmer homes and the broadband plan. 
This bill builds on and extends earlier international tax reforms. Some of them as has already been acknowledged in this House tonight first came to this House under the last Labour Government but a substantial number of them have come in under this Government in the 2 years since we took office. The main proposal in the bill is to extend the active income exemption introduced in 2009 to offshore subsidiaries. As has already been stated they are controlled foreign companies or CFCs in the tax parlance that is used within the Finance and Expenditure Committee. The proposal also applies to joint ventures and other significant shareholdings in foreign companies that are not controlled by New Zealanders. 
The act of income exemption brings New Zealand’s tax rules into line with other countries and in terms of best practice it is something that the Government is here to promote. Although our colleagues across the benches have said that they will scrutinise this bill in the select committee it intimates to me that they do not scrutinise other legislation that has been put through the House. All three speakers from the Labour Party used the word “scrutiny” and that indicates that they are all reading from the same research notes that were handed out prior to their coming to this House. We thank them for their contributions on that subject. 
Grant Robertson 
: Wrong message. 
PESETA SAM LOTU-IIGA 
: Yes Mr Robertson. This bill also helps New Zealand - based businesses to compete more effectively in foreign markets by freeing them up from a tax cost that similar companies in other countries do not face. So it is about competitiveness and about promoting New Zealand companies and promoting our industries in foreign lands. 
We heard the arguments from members opposite that they do not see the promotion of exports through a number of our tax policies yet for 5 consecutive years under the Labour Government export volumes decreased. That shows Labour’s commitment to the promotion of exports the promotion of jobs and opportunities and the promotion of our industries. We also heard from Mr Cunliffe about the possibility of reforming loss attributing qualifying companies. I find that rich coming from the Labour spokesperson on finance given that Labour had 9 years within which to regulate such companies. Those members sat on their hands and knees and failed to do anything about it. 
In terms of productivity we will be deliberating on the New Zealand Productivity Commission Bill in the Commerce Committee and that is another change that we expect will promote productivity and exports from this country. We know that under the 9 years of the Labour Government productivity increased by 1 percent year on year. Labour’s track record is nothing to be proud of. The Government has had to turn round this economy with the policies that I have outlined in terms of infrastructure innovation and cutting red tape and regulations. I look forward to the select committee process where we will discuss the details of this bill. I commend the bill to the House. Thank you.