Lotu-Iiga Peseta Sam: Taxation (Business Tax Measures) Bill — In Committee 
Lotu-Iiga Peseta Sam: Taxation (Business Tax Measures) Bill — In Committee 
[Volume:653;Page:2010] 
PESETA SAM LOTU-IIGA (National—Maungakiekie) 
: 
 I endorse much of what has been said this afternoon. I am glad that we have used the word “multi-partisanship” because it is not just about Labour and the National Government. We have heard from a number of other parties that support this bill that support the measures within this bill and that certainly support the purpose behind this bill which is to help our small to medium sized enterprises as they struggle through this world recession. 
Much has been said about the global recession but there was a report out yesterday that said that New Zealand was in good stead in terms of its financial institutions and that those institutions have managed to not get tied up with a lot of the derivatives and the subprime mortgages that affect our friends in the US and the UK. But this is not about a bunch of politicians arguing in the House in Wellington. It is about mum and dad businesses—the small businesses that are out there trying to do good for their families do good for their regions and do good for this country. 
I spoke at a business breakfast where there were over 50 business owners representing a wide range of business interests in my electorate in Ellerslie. The thrust of their opinions and their views was really around taxation compliance relating to GST provisional tax and various papers that needed to be filed with the Inland Revenue Department. They also talked about the need for the Government to understand that the credit crunch is real in this country and that working capital is one of the things that they are finding difficult to attain in order to drive their businesses forward. 
As many speakers have intimated this afternoon this bill is really about freeing up cash flow for small to medium sized enterprises. It is about reducing compliance around some of the filings. The one clause that no one has picked up on concerns the GST registration threshold being raised from $40000 to $60000 for GST turnover. I think that is a huge boost for small to medium sized enterprises particularly sole traders who are going about their work and do not want to deal with this type of filing of papers on a regular basis. 
The other point that has not already been mentioned is around a regulatory impact analysis and the adequacy statement that the regulatory impact analysis team has put forward and determined to be adequate. However the consultation undertaken with regard to the provisional tax uplift rate was deemed to be a little bit on the light side. That is understandable given the time constraints in which we are trying to get this bill pushed through the House. 
 This bill—and many have talked about its other clauses—does not solve the whole crisis that this country faces. But it does add to the mix of initiatives that this Government has undertaken to reform the Resource Management Act as many developers and businesses out there are trying to improve their capital stock their plant and their machinery and are having to deal with regulation and red tape which does not complement what they are trying to achieve. So the changes to the Resource Management Act will certainly be positive. 
The 90-day probationary period for small businesses is a huge boost. My colleagues on the other side of the Chamber may disagree but the feedback I am getting from my electorate from workers and employers who have taken on this type of arrangement is positive. It gives those who would not otherwise have a chance to be employed the chance to prove themselves. Also the KiwiSaver thresholds are being reduced and that has been positive as well. Low-income workers can now afford to join the scheme. It will benefit low-income workers who the Opposition says cannot afford to get on to the scheme. 
Hon Maryan Street 
: Not in the long term. 
PESETA SAM LOTU-IIGA 
: We beg to differ on that. National has held a Job Summit which has been hugely positive. 
The CHAIRPERSON (Lindsay Tisch) 
: I remind the member that we are debating the Taxation (Business Tax Measures) Bill. It is not appropriate to debate other measures in this debate which is very narrow. I ask the member to confine his comments to the bill. 
PESETA SAM LOTU-IIGA 
: In summary I recommend this bill. It has multiparty support and I think it is a bill that will certainly make a difference to our small to medium sized enterprises. 
Part 1 agreed to.