Pillay Lynne: Taxation (Budget Measures) Bill — In Committee 
Text is incorporated into the Bound Volume 
Pillay Lynne: Taxation (Budget Measures) Bill — In Committee 
[Sitting date: 20 May 2010. Volume:663;Page:11147. Text is incorporated into the Bound Volume.] 
LYNNE PILLAY (Labour) 
: 
 First I commend Metiria Turei for a great speech. I totally agree with all the points that were raised. We all know on this side of the Chamber— 
Hon Dr Wayne Mapp 
: When is Labour going to start to decrease the deficit? It didn’t do it in 9 years. 
LYNNE PILLAY 
: I hear Wayne Mapp and see that he is feeling embarrassed about this tax swindle which is based on total self-interest. How do we know that these tax cuts are based on self-interest? We know because the big winners are the people who earn high incomes. The tax cuts are for the privileged few. They are really really unfair. 
If we look at people on low incomes those who need tax cuts the most we see that they are hit by the rise in GST. That is very unfair in terms of the distribution and liability on people on low incomes. The effect on them is very disproportionate. Then there are the tax cuts. If we look at people on low incomes—those on 20 grand or 40 grand a year; people with families—we see that they get next to nothing out of the tax cuts yet this Government is borrowing big time and cutting public services in order to fund them. 
When we look at people on high incomes like those that members of Parliament are privileged enough to earn we see that is where the big gains are. If we look at even higher incomes the tax cuts are so much higher. That action has been taken by a Government led by a Prime Minister who categorically said that National would not raise GST. I ask Mr Mapp whether that is correct because he is not interjecting very much now. Did John Key say that National would not raise GST—yes or no? Did John Key say that? The members opposite know very very well that John Key said that but it has all changed. That promise was broken so that one-third of the tax cuts goes to the top 5 percent of income earners. The top 1 percent of earners will get 15 percent of the tax cuts—15 percent of the tax cuts goes to the top 1 percent of earners. 
Does that sit alongside the funding that was reintroduced by the Government such as the big funding boost for private schools? That was done at the cost of the most disabled children in New Zealand. We know there has been some increase in funding for disabilities but when we look at it we see that the Budget has a paltry amount for people living with disabilities. If we compare that funding with the extra $1.4 billion we see a big hole in health spending. That is what this Budget is about. This Budget is about a great big hole in health spending because a huge amount is going in tax cuts to the wealthy in New Zealand. Members on this side think that that is grossly unfair. It is actually immoral. 
Where else do we see casualties? 
Hon Steve Chadwick 
: Casualties in State housing. 
LYNNE PILLAY 
: I ask my colleague who has been a strong advocate for State housing for our most vulnerable families whether it is correct that $18 million— 
Hon Steve Chadwick 
: $80 million. 
LYNNE PILLAY 
: How much has been cut? 
Darien Fenton 
: Nearly $100 million has been cut from housing. 
LYNNE PILLAY 
: Nearly $100 million has been cut from housing and that is by a Government that says that it cares about people. We all know that one of the key things that families need is safe and affordable housing. We know that in cutting that area the real casualties will be the families most in need in New Zealand. 
Let us talk about early childhood education. When Labour brought in its early childhood policies the National Opposition vehemently opposed them. In this Budget the Government did not have the guts to cut the funding but by stealth it is cutting away all of that really good investment. Those building blocks for our children’s future are being cut. It is absolutely reprehensible that the members of this Government will take money away from families from children and from those who need it most in order to fund tax cuts for themselves.