McClay Todd: Taxation (Annual Rates Returns Filing and Remedial Matters) Bill — Third Reading 
Text is incorporated into the Bound Volume 
McClay Todd: Taxation (Annual Rates Returns Filing and Remedial Matters) Bill — Third Reading 
[Sitting date: 25 October 2012. Volume:685;Page:6239. Text is incorporated into the Bound Volume.] 
TODD McCLAY (National—Rotorua) 
: 
 That was an appalling speech from that last member David Clark. It was full of doom and gloom and that was it. Anybody would think we were back to the dark old days of the Labour Government. I was about to pick up the telephone and ring my doctor and say to the doctor: “If I listen to David Clark speak for 10 minutes will I live longer?”. And his answer would have been: “No but it surely would seem like it.” It was an appalling speech. 
This piece of legislation the Taxation (Annual Rates Returns Filing and Remedial Matters) Bill is about a Government that is building a more competitive and productive economy for New Zealanders. It is about lifting economic performance. It is about creating 70000 jobs so far with many more to come and boosting incomes for improving living standards for people from the very north of the North Island to the south of the South Island. 
This is great stuff from a good Minister of Revenue and a good Government. It is no wonder that was an appalling speech from the last man on his feet David Clark because there is nothing that those members can add that would do any more or any better than what our Minister is delivering for us today. 
What will this bill do? In brief it simplifies tax filing requirements for individuals and supports businesses and the way they handle their taxes—something that Labour could have done when it was in Government for 9 years but no apparently Labour members think that is tinkering. They were not interested in it then. The bill brings in measures to ensure that expenditure on software development is now deductible. Those members could have done that in the 9 years of the Labour Government but no it was not done then. They could not be bothered with it back then and today they say that it is tinkering. The bill also changes the thin capitalisation rules for foreign-owned banks. I bet you that this issue has not arrived just now or happened just now. I bet you this was an issue during the 9 years of the Labour Government. Did those members do anything about it then? No and today they call it tinkering. The effect of these rules is to limit foreign-owned banks’ interest deductions against the New Zealand tax base. That is good for New Zealand taxpayers because it makes the taxes paid broader and more people share in this as they should do. 
Two measures announced in the 2011 Budget were an increase in the KiwiSaver minimum contributions for employers and employees and an increase in the minimum equity holding for foreign-owned banks. I want for a moment to speak about KiwiSaver—a very important policy that a lot of New Zealanders are involved in and enjoy. I bet you they are glad there is a National Government. We have done a lot to reinforce strengthen and future-protect KiwiSaver for all New Zealanders who are involved. 
The Government is committed to lifting the national savings rates to reduce New Zealanders’ longstanding debt to overseas lenders and to deepening our capital market so that businesses can access the funds they need to grow. This was not something that happened under a Labour Government over 9 years. In fact one need only do what the Labour Opposition likes to do—ask the Parliamentary Library for some research and come to this House to quote it and table it—and one will see that New Zealanders borrowed more and became more indebted than at almost any other time that I can remember or research in the 9 years that Labour was in Government. 
 So KiwiSaver is very important. There are 1.9 million New Zealanders involved in KiwiSaver. It has had about 17500 new members a month for each month over the last 12 years. Under a National Government KiwiSaver funds have grown from $9 billion to $12 billion in the past year. KiwiSaver funds are estimated to be worth $60 billion by 2025. That is our commitment to this. This is not tinkering as the Labour Opposition would say. These are good hard-core facts. It is a commitment on behalf of the National Government to New Zealanders. 
The final point I want to raise is around Supplementary Order Paper 98 which has been brought before us to benefit quake victims—victims who are still facing real and ongoing difficulties. It is 18 months since the tragic and devastating events on 22 February the earthquake in Christchurch and this Supplementary Order Paper is another way the Government is supporting the people of Christchurch by providing all the practical help that we can. 
This is not tinkering. This is a robust piece of legislation. It is a very big piece of legislation. I am glad that the Labour Opposition has said that it will support it. It surprises me because anything of worth that this Government does Labour members are not onside with. They want New Zealanders to think that things are much worse than they are. This is a good piece of legislation. I look forward to them joining us finally on doing something that is good for New Zealanders. Thank you.