Beaumont Carol: Taxation (Budget Measures) Bill — In Committee 
Text is incorporated into the Bound Volume 
Beaumont Carol: Taxation (Budget Measures) Bill — In Committee 
[Sitting date: 20 May 2010. Volume:663;Page:11148. Text is incorporated into the Bound Volume.] 
CAROL BEAUMONT (Labour) 
: 
 One of the most annoying things I have heard in this debate so far is that every time members on this side—Green or Labour—outline the absolute unfairness of the tax changes that are being made by the Government we have levelled at us that our comments are about the politics of envy. I can only conclude that the reason that little Crosby/Textor line no doubt about the politics of envy is being trotted out is that those members know that what we are saying is true. They know that the small tax cuts that people on low and middle incomes will get will be completely offset by increases in GST and other inflationary pressures. 
That is unfair. How just is it that those on the lowest incomes who cannot make ends meet at the moment will get a paltry increase in income while those with more than enough will get huge increases? How just is that? How just is it that they will face significantly higher costs as a result of inflation peaking at 5.9 percent which will wipe out their tax cuts? How just is that? How just are these changes when they follow on from the previous unfair tax cuts made by this Government? In the electorate of Maungakiekie where I am working 64 percent of people earn $40000 or less and they received no tax cut in 2009 or 2010. Now they will get a paltry tax cut which will be offset by increased costs. How just and how fair is that? Members opposite can call my comments the politics of envy if they like but they know that that position is not fair. 
I want to talk about the economy. The rhetoric of the Budget—and we heard it leading up to the Budget and we hear it in the Budget-speak—is all about rebalancing the economy. The Government says that we will have a smart economy and that it values education. Actually the only measure to appear in the Budget is the waving of the magic wand of tax cuts. Suddenly the economy will be rebalanced! Suddenly there will be the growth in productivity that there is a lot of rhetoric about! There is a lot of rhetoric about lifting productivity. Nobody in this House would disagree about the need to lift productivity but talking about it is not sufficient. Where is the investment in people? What is going on in terms of tertiary education funding is social and economic vandalism. 
I will talk particularly about investment in people who are already in the workplace. There are further cuts to adult and community education which will affect those who want second-chance learning. Where is the money for industry training? Where is the money that would actually lift us in terms of the technical skills we need? We have a structural skills problem in New Zealand. Where are the initiatives in the Budget to deal with that? I ask that somebody opposite stands up and answers that question. Eighty percent of the people who will be in the workplace in 10 years’ time are already in the workplace so to change our skills deficit we cannot just invest in people entering the workforce; the Government also has to focus on investing in those who are already in the workforce. People who in their own time want a second chance at education through adult and community education are out of luck in many parts of New Zealand and I am sure that position will get worse. What about those who want to learn when they are in the workplace? Where is the extra funding for that kind of learning? There is a lot of talk about productivity but without the skills to change how work is undertaken without the skills to implement and utilise new strategies and new technology we will not go forward as a country. 
When we look at the reduced increase in funding for research and development the complete absence of initiatives in terms of skills and the absolutely minuscule funding for tertiary education we have to ask ourselves how serious the Government is about lifting productivity. The answer I am afraid to say is it is not serious at all. Cutting taxes will not lift productivity. Other measures have to be taken. There have to be economic development strategies. There needs to be investment in our people. I would have really appreciated seeing some effort put in that area but no there has been none.