Nash Stuart: Taxation (Annual Rates and Budget Measures) Bill — In Committee Third Reading 
Nash Stuart: Taxation (Annual Rates and Budget Measures) Bill — In Committee Third Reading 
[Volume:672;Page:18989] 
STUART NASH (Labour) 
: 
 We are debating the title and commencement clauses of the Taxation (Annual Rates and Budget Measures) Bill. I will talk a little about the commencement date. Of course Mr Key said he would not change KiwiSaver. That was one of the platforms he campaigned on in 2008. He also said he would not increase GST but he did. At least with this change he said he will go to the public to seek a mandate. He has made that absolutely clear and he has put his plan for growth on the table. Mr Key has said that his plan for growth includes cutting KiwiSaver. I suppose the thing that annoys me a little bit about that— 
Hon Member 
: A lot. 
STUART NASH 
: Actually it annoys me a lot. There are 1.7 million people in KiwiSaver and the reason they invested in KiwiSaver is that we suggested they do so. When I say “we” I mean members of Parliament: Michael Cullen; members of the National Government actually; and the honourable Minister of Revenue himself. We went out and told New Zealanders that they needed to save more that this country was in trouble because we have huge net debt. We have pumped a lot of money into housing into the non-productive sector so we need to save more. We told New Zealanders that we do not know what will happen with superannuation in time. We told New Zealanders that if they really wanted to make sure they could retire with dignity and live with respect in their older years then they needed to put some money away for a rainy day for their retirement. 
This is what New Zealanders were told. This is what we advised them. We set up a scheme that would allow this to happen. It was quite generous. If people invested they were given a carrot of $1000 which is not an insignificant amount of money. Most New Zealanders realised this was a good deal. We figured that most New Zealanders needed a sweetener so we gave them $1000—there were some nice incentives there—and they took this up because New Zealanders by and large are pretty well-engaged people. They are intelligent and they know a good deal when they see it but they also know that their future is important so 1.7 million New Zealanders invested in KiwiSaver. 
The really disappointing thing with this bill which we are debating under urgency is that part of the incentive to invest in KiwiSaver has been taken away. I cannot understand the rationale behind that change because New Zealanders are doing what we told them to do which was to save and we are taking away some of the incentive. In fact there was a bloke on the television this morning an ex - All Black who felt aggrieved by this. He said he was an ex-National voter; he voted for National in 2008 but he felt that John Key and the National Government had broken a contract they had signed with voters. 
There are a lot of New Zealanders out there who get this—it was a simple message to stop investing in houses and to stop spending on plasma TVs and other consumables because that of course drove up international debt increased interest rates and was not good for our economy. It is one of the reasons we are so indebted. 
The Labour Party recognises that New Zealand has issues in terms of debt. We know that the Government—any Government—cannot simply keep borrowing $380 million a week. We accept that but I tell members that this legislation is not a plan. This legislation does not set out a plan for how to address that. If a plan is cutting KiwiSaver then God help me. This is not a positive move to drive economic growth; it is a negative move. This is not a positive way forward for this country. It is taking us backwards. 
Another point we said was so important about driving economic growth in New Zealand was the depth in our capital markets. KiwiSaver was beginning to achieve that. What we absolutely need—I thought the Prime Minister understood this and I thought the Minister of Finance understood this—is a pool of money that can be invested in New Zealand on behalf of New Zealanders to grow the pie. 
Someone was talking before about the scheme that was put in under Norman Kirk. It was put in by Sir Roger Douglas. Sir Roger Douglas understands the need to save and it does not come more right wing in this Parliament than Roger Douglas—well it did; Don Brash sits there every now and again. Sir Roger understood the need to save. Even Sir Roger put in a scheme and if that scheme was still going now our economy would be completely different. But that scheme was axed by National. 
I look at the state of our economy at the moment with $16 billion worth of debt and I cannot help but wonder what it would look like if 40 years worth of saving had accrued. As sure as eggs we would not be facing a $16 billion deficit. I tell members another thing. Mr Key laid it out—he said: “OK we will see you on the campaign trail.” This legislation is about a mandate for asset sales and a mandate for KiwiSaver. This election will be about a mandate for this bill. So this is quite important legislation—it is a small piece of legislation but it is very important legislation. The fact that it is being rushed through under urgency makes no sense to me because there is still enough time to take this through before the election. 
As I said all we have to do is look at the commencement date. There is no urgency with this but the consequences are huge for all New Zealanders. Perhaps we could call it the “Taxation (Stealing Kiwis’ Dreams) Bill”. In a way that is what is happening. The Government is taking away the dreams that members of Parliament handed out to people. We painted a vision to all New Zealanders that if they invested in KiwiSaver there would be a nest egg there for them. In a way we are taking that away. I admit that we are not taking all of that away but let us be honest. If we take an extra $10 a week for 52 weeks a year for the next 20 to 30 years that adds up to a significant amount of money. To take it away is in a way taking away the dream stealing a little bit of that dream that New Zealanders thought we had laid out for them. 
That is why I come back to the bloke in Eltham who said the Government had broken a contract with him. I would also like to remark on the words that Mary Holm said. I very much doubt that Mary is a Labour supporter. She might be; she is certainly sensible. She understands economics and finance. She said that the Government has taken an excellent scheme and made it only very good. This scheme has gone backwards. In fact I think the vast majority of political commentators who understand the woe that this economy is in have said that this is a step backwards. It not a step forward. It is not a plan for growing this economy. This legislation is not a plan. 
Mr Key said to Phil Goff “I will see you on the hustings Mr Goff.” I cannot wait for that. I cannot wait to stand in a public meeting with Mr Tremain in Napier as he explains to the people of Napier why this legislation is good and why it was necessary to take $10 a week off the people of Napier. I am also keen to hear Mr Tremain explain in a public meeting why the Government has taken $120 million out of the Hawke’s Bay economy in terms of Working for Families because that is what this bill does—it takes $120 million. 
We have to remember that Working for Families did not go to the wealthy. It went to the people who had been identified as needing a little bit of a hand up—not a hand out but a hand up. They were people who worked and had children and the Government has taken away a portion of that from the Hawke’s Bay economy. That will hurt one of our most depressed regions. I would argue—and I would argue with my colleagues on this—that Napier is the best city in the best country in the world but this steals a little bit out of us because the people of Napier will lose some money. 
There are more shops closed in Napier now than there have been for 10 years. This bill takes money out of the Napier economy. Working for Families gave money to people who would spend money. That is one of the reasons why the Labour Government instigated Working for Families. It realised that people who were working and bringing up children needed a little bit of a hand up so they could continue to live a decent lifestyle which we demand for all New Zealanders. 
This is why I am so disappointed with this legislation and this is why it is such a shame that it could not go to the Finance and Expenditure Committee. I am on that committee and Mr Foss is the chair. We could have heard all the arguments for and against this bill and made a reasoned rational decision then presented it back to the House. I suspect the reason why it has not gone to the select committee and why we are passing it under urgency is that the Government knows the response. The Government knows that every single Kiwi would say no—every single one of the 1.7 million New Zealanders who have invested in KiwiSaver.