O'Connor Damien: Taxation (Budget Measures) Bill — In Committee 
Text is incorporated into the Bound Volume 
O'Connor Damien: Taxation (Budget Measures) Bill — In Committee 
[Sitting date: 20 May 2010. Volume:663;Page:11143. Text is incorporated into the Bound Volume.] 
Hon DAMIEN O’CONNOR (Labour) 
: 
 This Budget is a disgrace. It is a very dumb Budget if one wants to run a smart economy. It is a regressive Budget if one wants to run a progressive economy. I will quote from Bill English something that most people in this Parliament would accept: “This lacklustre performance from the export sector lies at the heart of our growing vulnerability.” I ask what this Budget did for the export sector and for the primary drivers of that sector the farmers and horticulturalists. Well not once in the Budget statement did Bill English whose brother is the chief executive officer of Federated Farmers mention agriculture or horticulture—not once. In fact he made only a brief reference to exports or exporters. So how will this Budget grow our economy? 
We should look at a few reports on our economy because we would see that there are some challenges going ahead. We accept that we need to have better performance from the export sector. New Zealand’s largest single vulnerability is now the large and growing net external liabilities. But having identified this vulnerability what does this Budget do about it? Well to quote Bill: “Very very little.” If we do not grow our earnings no amount of shuffling around of tax rates and tax benefits will get us out of the hole we are in because we need to be driven by greater exports up and down this country. 
Not once was agriculture mentioned. That is a disgrace. But worse than that if we had a productive sector wanting to invest in higher levels of productivity new technology and better machinery the Government cut the depreciation allowance right out from under its feet—right out from under its feet. I was talking with one of the largest exporters in this country less than 2 weeks ago. He said we needed a higher level of depreciation allowance for new plant and equipment to lift the level of productivity in this country. John Key has said a lot about productivity but he thinks productivity is paying less to workers to give more to the people at the top. Well he did that I guess—I guess he did that in the Budget. Yes he has given crumbs to the people at the bottom and given a bigger slice of the cake to the very wealthy of this country. That is immoral. It is absolutely immoral and it is dumb dumb thinking if we are trying to develop a smart economy. 
People will be packing their bags and going to Australia because no amount of tinkering with the tax rates will make up for the huge gap between what we can pay workers in this country and what Australia can pay workers and its higher savings rate and its better superannuation benefits. But what did this Budget do to address that? Nothing—absolutely nothing. It is a pathetic Budget from a mean Government that does not understand the terms “fair” or “equitable”. It has driven this economy further behind. There is nothing for the export sector and nothing for the farmers. In fact if there were farmers earning over $70000 a year they might have benefited more. But Federated Farmers reluctant as they may be to criticise the Government admitted that very few farmers pay tax. So they will face higher levels of GST. I say to them that if they are bleating about the emissions trading scheme’s cost to their business they should sit down and do a calculation about the increased cost from the rise in GST. It is about time they did that and Connor English should get off his chuff as a chief executive challenge his brother and say: “You Mr English my brother have imposed huge costs on the farming and export sector and offered us nothing by way of your Budget.” They do not have a vision— 
Jo Goodhew 
: Look at what your emissions trading scheme has done to farmers. 
Hon DAMIEN O’CONNOR 
: Neither does that member from Timaru. She will find that the people who drive her local economy will be absolutely disappointed with this pathetic Budget except if they earn over $70000 per year. If one earns over $70000 per year one has the highest level of tax cuts. That member Jo Goodhew will be happy because she earns over $70000 per year. So does the person beside her Chris Auchinvole. This is a pathetic Budget for the export sector.