10. Question No. 10—Research Science and InnovationDr PARMJEET PARMAR (National) to the Minister of Research Science and InnovationQuestion No. 10—Research Science and Innovation10. Dr PARMJEET PARMAR (National) to the Minister of Research Science and Innovation: What advice if any has she sought or received on the impact of a capital gains tax on research and development in New Zealand?Hon CHRIS HIPKINS (Leader of the House) on behalf of the Minister of Research Science and Innovation: I've not received any advice on the impact of a specific capital gains tax as a proposal on R & D in New Zealand because the Government's not made any decisions in response to the Tax Working Group report. However I have received general advice provided by the Inland Revenue Department and Treasury to the Minister of Finance and the Minister of Revenue that concluded officials do not consider there is a conflict between the R & D tax incentive and expanding the capital income tax base. Dr Parmjeet Parmar: Does she then agree with advice from the Inland Revenue Department in 2017 that not having a capital gains tax incentivises New Zealand businesses to undertake research and development? Hon CHRIS HIPKINS: I think the Minister of Revenue has already answered that question by pointing out that that advice was provided long before the debate around the capital gains tax was even introduced and before the Tax Working Group had even considered the matter. Dr Parmjeet Parmar: I raise a point of order Mr Speaker. My question was about if the Minister agrees with that advice. SPEAKER: And the question was addressed. Dr Parmjeet Parmar: Does she then agree with advice from Treasury and the Inland Revenue Department in 2018 that a capital gains tax would allow the Government to claw back some of the benefits of the R & D tax credit? Hon CHRIS HIPKINS: The R & D tax credit was introduced in last year's Budget. The idea that there's any link between the consideration around a capital gains tax and the R & D tax credit is preposterous. Dr Parmjeet Parmar: I raise a point of order Mr Speaker. Again my question was if the Minister agrees to this advice that was provided. SPEAKER: Well he said that the member's assertion was preposterous. I think that's a pretty clear answer. Dr Parmjeet Parmar: I raise a point of order Mr Speaker. This is in the documents in the advice that was provided to the Tax Working Group. SPEAKER: And the member's had a response. The member mightn't agree with it but it was pretty clear. Dr Parmjeet Parmar: Does she agree with Peter Beck the founder of Rocket Lab who in relation to the impact of a capital gains tax on technology companies said NZ already has big problems around creating large valuable technology companies and this will not help."? Hon CHRIS HIPKINS: On behalf of the Minister I have huge respect for his work but we respectfully disagree on this matter. Dr Parmjeet Parmar: Does she agree with advice from the Inland Revenue Department in 2017 that not having a capital gains tax advantages start-ups? Hon CHRIS HIPKINS: As I indicated earlier that advice pre-dated any consideration of capital gains tax and it pre-dated the deliberations considerations and consultations of the Tax Working Group."