Tisch Lindsay: Taxation (Depreciation Payment Dates Alignment FBT and Miscellaneous Provisions) Bill — Instruction to Committee In Committee 
Tisch Lindsay: Taxation (Depreciation Payment Dates Alignment FBT and Miscellaneous Provisions) Bill — Instruction to Committee In Committee 
[Volume:630;Page:2009] 
LINDSAY TISCH (National—Piako) 
: 
 It is interesting to follow the Minister for Racing. National supports his Supplementary Order Paper 15 because this policy mirrors National’s policy of 2002. 
Rt Hon Winston Peters 
: Oh rubbish! 
LINDSAY TISCH 
: Here we have New Zealand First’s policy of 2002; it is dated 2 July 2002. We had a very comprehensive policy in 2002 which I wrote. [ 
Interruption 
] Well no other policy is mentioned anywhere else; I have done a search of the web and the press releases and I can show that this is the only mention in 2002 of anything that New Zealand First ever did. In 2005 we released our policy well in advance of what New Zealand First did. Of course the point is that its policy was just a reiteration of what we said in 2002. Our policy was actually released in 2002. 
I say to the industry that National supports the Supplementary Order Paper. As the Minister said this measure is good for the industry. National would be the first to acknowledge the importance of it to the racing industry. I have been dealing with the industry over the last 6 years. I am not just a johnny-come-lately on this job. I have been around the race meetings and I have met with the industry players in the three codes. 
Rt Hon Winston Peters 
: And they’re still laughing. 
LINDSAY TISCH 
: I say to that Minister that I am still meeting with them. They acknowledge the work that National put in that enabled this measure to be brought to the fore—to where it is now. But I do have some questions of the Minister in the chair Mr Dunne because I have a major concern about what the write-offs mean. Of course a lot of people call it depreciation when in fact it is a specified write-down of the values of brood mares and of stallions. The officials who are here may be able to answer one of our concerns because I do not think the Minister for Racing Mr Peters is right. 
I know that if we were to look at what happens today we would see that most breeders have a balance date of 31 July for their business. There are a few who do not but the majority do. I have talked to accountants today about the actual balance dates for their clients and 98 percent—probably even more than that—have a balance date of 31 July. There are a couple who have balance dates later than that. I am told that one has a balance date at the end of August and one has a balance date in September. We need to look at what this legislation means with its write-offs—and they are generous write-offs; once again they are in line with what we have advocated so we have no difficulty with that. If someone were to buy a horse today—be it a brood mare or a stallion—that person would not get any benefits if his or her balance date is 31 July until the 2006-07 year but he or she would not get any benefit in monetary terms until March or April of 2008. So anybody who thinks he or she is on a win because of what we will pass today will be sadly disillusioned. 
Rt Hon Winston Peters 
: Wrong. Don’t know accountancy either. 
LINDSAY TISCH 
: I am asking the Minister in the chair to respond as the advisers are here. The accountants whom I have talked to today say there will be a delayed benefit for those people who have a 31 March balance date. I have it here that New Zealand Bloodstock will shift its national brood mare sale set down for 23 and 24 July back to the first week in August but people who have a 31 July balance date still will not benefit. That is the issue. The accountants are saying those people will not get any tax benefit until 2008. 
This is a huge question. As the advisers are here I would like to think we could have a rational response to the questions I am raising because the industry as a whole does not understand the issue. The accountants who have to deal with the books understand it and they have told me in no uncertain terms that in essence the provision is great but it does not actually—