Copeland Gordon: Debate on Prime Minister’s Statement 
Copeland Gordon: Debate on Prime Minister’s Statement 
[Volume:606;Page:3361] 
GORDON COPELAND (United Future) 
: 
 I hope it will come as no surprise to anyone in this House that I am going to use my little 5-minute slot to talk about issues of fundamental importance to New Zealand families and to New Zealand communities. The first of those relates to income tax rates. I call upon the Government to adjust the current $38000 and $60000 tax bands the low-income tax rebate level of $9500 and the family support and tax credit payments for consumer price index inflation from 1 April 2003. The Government has signalled that it may do something about this in 2004. I say why wait for 12 months? The tax band and the low-income tax rebates were established on 1 April 2000 and now require adjustment by 9 percent just to cover inflation. Family support payments were established in 1998 and now require an adjustment at over 12 percent. A decision by the Government not to make these adjustments now would represent a failure to honour its pledge—its card commitment—to no new taxes since I presume that in making that pledge the Government was talking about real taxes and not just nominal rates. 
The surpluses projected in the Budget Policy Statement are the result of the hard work of New Zealanders. A failure to adjust for the movement of the consumer price index would also amount to an unjust bonus in favour of the Government’s coffers at the expense of New Zealanders and their families.  
During the New Year recess I noticed that the Bush administration has proposed to the United States Congress a number of tax measures that would see a family of four with a household income of US$45000 paying just $45 in federal income tax. That is $45 for a family—Mum Dad and two kids—earning $US45000. It made me think again about the importance of ensuring that taxes for families reflect the reality of the number of people reliant on an income. When we think about it the US administration is saying that a family of four needs about $US45000 to live on. I stress that it is a Republican policy. Some of the Democrats have responded by proposing in addition that childcare rebates of $3000 for the first child and $6000 for two or more children should be paid to low-income families where one parent has stayed at home to care for the children. That is also United Future policy and I would urge the Government to have a close look at it.  
Rodney Hide mentioned submissions to the Finance and Expenditure Committee this morning. We also had them from Barnardos from the National Council of Women from the downtown ministry and others basically saying that we cannot honestly say that we have a surplus in the Government’s coffers while child poverty continues to exist in this country.  
However the central point I want to make is this: in this country it is time the parties of both the left and the right came to recognise the cost and the importance of raising kids and the need for our taxes to take those realities into account. Perhaps there is the possibility—I am new here and I am still optimistic and I would hope so—of consensus in this House also around that issue. For the sake of New Zealand and its families I would hope so.  
In talking about tax and families we need also to remember that GST is a highly regressive tax for low and middle income families. Having paid their rent or mortgage which are GST-exempt they pay 12.5 percent tax by way of GST on all the rest of their income. Low-income families have no option.  
My second point is in a way related to the first but involves the expenditure side of the Budget. It would be a tragedy in my view if having done all we can to help New Zealand families through the tax system we ended up with many of our children being spoilt brats with a propensity for binge drinking pot smoking and juvenile crime. “Spoilt” after all when it is applied to a child refers to the likelihood that his or her whole life will likely be a failure.  
But we risk that outcome unless we emphasise once again the need for character education in both the home and the school—one reinforcing the other. Like Tony Blair I believe that entitlements and rights from society such as quality education health care and tax breaks must be accompanied by responsibilities and duties towards others in our communities. I understand that the legislative framework is in place for character education—that is the teaching of basic values and virtues in our schools. It has been there since 1993. UNESCO is calling for it. Many MPs went to its national summit on values in October but I also understand that the Minister of Education is dragging the chain and remains uncommitted. If that is so I hope his Labour colleagues and indeed all like-minded people in this House can persuade him to change his mind and make this a priority. United Future is committed to seeing New Zealand become once again a great place to have a home a great place to return to a great place where people can feel safe and a great place where we can together build communities where all participate.