Nash Stuart: Goods and Services Tax (Exemption of Healthy Food) Amendment Bill — First Reading 
Nash Stuart: Goods and Services Tax (Exemption of Healthy Food) Amendment Bill — First Reading 
[Volume:666;Page:13811] 
STUART NASH (Labour) 
: 
 What a couple of interesting speeches we have just heard. I rise to support the Goods and Services Tax (Exemption of Healthy Food) Amendment Bill. I will talk on two points but before I do I will comment on Heather Roy’s speech. 
The ACT solution to the problem discussed in this bill is to give people seeds and let them grow their own vegetables. That is the solution from the party that talks about lowering taxes and empowering people. I invite ACT to take that solution to people who are living on the fourth floor of an apartment block and struggling to pay the bills. ACT should tell them to plant seeds grow their vegetables and do it all in the bathtub because they do not need a shower. Goodness me! 
The first of the two points I will make is that although I support this bill it was the Maori Party that supported legislation passed in this House to increase GST on all food including healthy food. No one can say there are no politics in this bill because that party supported the National Government’s Budget to increase GST on food and it cannot escape that fact. My second point is that obesity is a national epidemic which really does need to be addressed most urgently. The principle behind this bill is a step in the right direction. I find it a little backwards that a member of the Maori Party introduced this bill when she voted for a Budget that increased GST on healthy food not 6 months ago. If the Maori Party had the courage of its convictions it would have voted against National’s Budget which increased the rate of GST on all food from 12.5 percent to 15 percent. 
The Maori Party is in coalition with the National Party which has made the following changes. In February 2009 Anne Tolley removed the clause in the National Administration Guidelines that stated that where food and beverages are sold on school premises schools should make only healthy options available. That change provoked a  
New Zealand Medical Journal 
 headline that read “School is back in New Zealand—and so is the junk food.” In May 2009 Tony Ryall removed a district health board and Ministry of Health target to reduce obesity in New Zealand. The 2009 Budget cuts included a cut of $32 million over 4 years from Healthy Eating - Healthy Action. In addition $24 million was cut from the diabetes initiative “Get Checked” Diabetes Aotearoa. Those are only four initiatives that have been removed by the National Government which is supported by the Maori Party. I know we are not allowed to use the “h” word—and I will not—but it comes to mind. 
My second point is that obesity is a disease that is placing enormous strain on our health system. The cost to the nation in terms of loss of productivity sub-optimal productivity and health-related illness is staggering and is expected to grow. I will give members some facts. The direct cost of obesity to the health system is $500 million per annum—$500 million. The World Health Organization estimates that the cost of obesity is between 2 percent and 7 percent of a country’s health care costs. The OECD placed New Zealand as the third-fattest nation last year. In New Zealand 11 percent of deaths are attributable to obesity 26.5 percent of adults are obese 63.7 percent of Pasifika adults are obese 41.7 percent of Maori adults are obese and 20.9 percent of children are overweight. 
Labour has raised the idea of removing GST on fresh fruit and vegetables only in recognition that we simply cannot have fresh fruit and vegetables out of the reach of a significant proportion of New Zealanders and their families. A study undertaken by the Auckland School of Medicine on the purchase habits of over 1000 shoppers found that the price elasticity on healthy foods is about 0.85. That means that for every 1 percent drop in price there is a corresponding 1 percent increase in the purchase of healthy food. In that study two-thirds of the increase was attributed to fruit and vegetables. So there is merit in investigating this legislation which will encourage all New Zealanders to eat healthier food. 
In conclusion this bill is flawed. It was introduced by a member who voted for a Budget that increased GST on healthy food. However as I have mentioned the principle behind it is right because obesity is a national epidemic that is costing the country up to $1 billion a year. That is why we are supporting this bill being referred to a select committee.