Tremain Chris: Taxation (Business Tax Measures) Bill — Third Reading 
Tremain Chris: Taxation (Business Tax Measures) Bill — Third Reading 
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CHRIS TREMAIN (National—Napier) 
: 
 I rise to support the third reading of the Taxation (Business Tax Measures) Bill. I start by congratulating the Minister of Revenue Peter Dunne the chair of the Finance and Expenditure Committee Craig Foss—my colleague from the Hawke’s Bay—and acknowledging the rest of the select committee who took part in the process. I also acknowledge the officials for the work that has gone on in bringing this bill to fruition in such short order. I thank them all very much. 
The National Government has a plan to blunt the edges of this recession and to enable New Zealand New Zealand businesses and hard-working Kiwis to prosper once we have come out of the bottom of the current recession. This small-business bill which is being implemented today in the House and which is effective from 1 April 2009—just 6 short days away—is a key part of that plan. It will deliver $450 million of additional stimulus and compliance-saving measures to the small-business sector. Let us not forget how important that sector is to the New Zealand economy. Small businesses make up 97 percent of all businesses that employ 19 or fewer people. That sector employs 31 percent of our workforce and importantly the sector contributes 38 percent of New Zealand’s output. Make no mistake: those people are a big contributor to our economy yet so often they are overlooked. But not today! 
I want the House to understand that the people behind small businesses in my opinion are the real drivers of this economy. It is not the Government not the big corporates; small businesses risk everything to provide jobs create products provide services and to grow their businesses. The health of the small-business sector plays a significant role in the health of the corporate sector. The entrepreneurs who start small—the Sam Morgans the Bill Days the Rob Darrochs the Rod Drurys the Jan Camerons and the Sally Synnotts of this world—are the entrepreneurs who risk everything and ultimately provide the renewal of our corporate sector. The big corporates play a part too but the difference is that the chief executive officers of those businesses risk only their reputation when things go wrong. They do not risk the shirt off their own back or the house where they live. 
That is why I become so angry when I hear Opposition members talk about the owners of small businesses with such disdain. They cry that those people are out to rip off employees to fire them at will in 89 days— 
Hon David Cunliffe 
: What disdain? 
CHRIS TREMAIN 
: That is right and particularly Mr Cosgrove. Every time he gets the chance he gets on his high horse about small businesses firing employees after 89 days. The fact of the matter is so different. Small-business owners enter employment relationships wanting the relationships to work not to fail. They want the relationships to be successful because those employees will help grow the business take on responsibilities and perhaps even invest in them down the track. 
Hon David Cunliffe 
: I raise a point of order Mr Speaker. Last time I looked we were supposed to be discussing the Taxation (Business Tax Measures) Bill not the 90-day “hire and fire at will” bill. It would be helpful if the member were to contain himself to the bill in question; most particularly because he is also misrepresenting the views of the Labour Party which supports small business. 
The ASSISTANT SPEAKER (Hon Rick Barker) 
: That is enough. We can become overly pedantic about these things. The member is making reference to that issue. If it continues for a long time then yes I think the point is made but a passing reference is neither here nor there. Let the debate flow. It is a third reading so generalisations are pretty acceptable. I invite the member to continue. 
CHRIS TREMAIN 
: Thank you Mr Assistant Speaker. The fact of the matter is that many small-business owners become pseudo-mothers and pseudo-fathers to their employees—the psychologist the banker the adviser the social worker—because they want those employment relationships to work. They do that often at huge personal cost. I want the House to know how important the small-business sector is and I take this opportunity to thank them. They are the engine room of our economy they are the champions and they will be the ones who get us through this recession and out the other side. 
The Taxation (Business Tax Measures) Bill is part of the National Government’s plan to support small businesses through this recession. The bill aims to improve the business environment by easing the pressure of taxes on the cash flow of businesses and reduce business tax compliance costs. To achieve that aim a number of measures are proposed in the bill. For example various thresholds for PAYE fringe benefit tax and GST will be raised; the provisional tax uplift rate will be reduced; and the rules for deducting legal expenditure will be simplified. Those are all excellent measures. It is acknowledged that a number of the initiatives in the bill reflect proposed changes in previous legislation or in Inland Revenue Department work streams and discussion documents including the Taxation (International Taxation Life Insurance and Remedial Matters) Bill. 
However it is important to note the well-known saying that between the idea and the action lies the shadow. Although the Opposition had a plethora of ideas and action plans for making life easier for hard-working Kiwis the shadow between those ideas and the action of implementing them became progressively longer as it faded into the sunset of the previous Labour Government’s recent demise. The top idea that came from its much-vaunted Small Business Advisory Group was the 90-day probationary period. Did the previous Government take one step towards implementing that idea? Not one! 
This Government unlike the previous Labour Government— 
Hon David Cunliffe 
: I raise a point of order Mr Speaker. I do not wish to detain the House. You have ruled that a passing reference to another matter is within the scope of this debate. The reference is being repeated and drawn out as a central theme of the member’s debate and I submit to you that that it is within your previous ruling to now take steps to draw the member back to the bill in question. 
The ASSISTANT SPEAKER (Hon Rick Barker) 
: The bill is as much about small business as it is about taxation. I give the member some more latitude. 
CHRIS TREMAIN 
: Thank you Mr Speaker. Unlike the previous Labour Government the shadow between the ideas and the actions of this Government is nil. Within 4 months we have delivered action to the floor of the House with a $450 million initiative. This package is about playing our part to help small businesses to get this economy going. The measures in this bill are part of a whole series of initiatives a wider plan designed to get this economy going. These include personal tax cuts coming into effect on 1 April. 
Hon David Cunliffe 
: Why doesn’t the Minister announce it? Where is the plan? 
CHRIS TREMAIN 
: It is part of one of the largest fiscal stimulus packages in the Western World I say to Mr Cunliffe. In fact it is in the top five which Mr Cunliffe has heard on a number of occasions. For him to stand and say that there is no strong stimulus package is absolute rubbish. The initiatives also include infrastructure spending on housing schools and roads which we have brought forward; the commitment to invest in rail; the introduction of amendments to the Resource Management Act to reduce compliance costs and speed up the processes of development; introducing the ReStart package to assist those who lose their jobs through redundancy; and the introduction of the 9-day fortnight to help workers retain jobs. These are all part of the wider plan. As I have previously mentioned the specific measures in this bill include the 5 percent uplift rate on provisional tax; the raising of GST thresholds from $1.3 million to $2 million; the lifting of the GST registration threshold; the increase of legal expenditure to $10000; and changes to PAYE fringe benefit tax (FBT) and some other minor FBT adjustments. Those are a significant series of initiatives that will help small businesses. 
This relief package is just one part of the Government’s jobs and growth plan. It is about keeping the economy running as strongly as possible easing the sharpest impacts of the recession and preparing our economy for future growth. Further parts of this plan will be announced and rolled out over the coming months. National is committed to making it easier for small and medium sized companies to do business. We all face the reality of a slowing global and local economy and it is certainly putting extra pressure on families throughout our country. We understand the importance of small business in helping to get us out of this economic mire that we are currently in. We respect small businesses we thank them for the work they are doing and we know that this bill in the House today—which will be implemented in 6 short days—will help take this country out of recession.