Bennett David: Taxation (Urgent Measures and Annual Rates) Bill — Second Reading In Committee 
Bennett David: Taxation (Urgent Measures and Annual Rates) Bill — Second Reading In Committee 
[Volume:651;Page:129] 
DAVID BENNETT (National—Hamilton East) 
: 
 I congratulate you Mr Deputy Speaker on your election to your new role. It is great to see somebody from the Waikato in such an esteemed role and I say well done. I am sure you will follow in the footsteps of other great people in that role such as Margaret Wilson before you who also had Waikato links. I say well done and congratulations. 
When we look at what we are passing today we see that the Taxation (Urgent Measures and Annual Rates) Bill is very important legislation. It is legislation that goes to the heart of many New Zealand individuals and families who are struggling who know there is a world economy out there that is very tight who know they need some help from their Government in their time of need and who want to see a Government that listens and is aware of the issues that are involved in the way they have to live their lives at the moment. They want a country and a Government that will deliver something to help them through this tough time. 
The National Party has listened to the people. The National Party went out to the people during the election campaign and said we understand the dilemma they are in we understand they want a better future and we understand they need a Government that will understand and work in their best interests. 
This is what we are seeing here today. This bill is the first step in building a better future for New Zealanders and building a stronger economy that will actually deliver that future for our people. Our people know it is going to be tough out there. They know there are going to be some major economic issues that we have to deal with as a country. They also know they want a Government that will make decisions; a Government that will go out there and not just look around the world and try to say we are leading on social and environmental issues but not actually do anything. They want a Government that will do things and that is what they will get from the National Party. 
The National Party will deliver constructive solutions and we will deliver them now to the people of New Zealand. We have a 100-day plan we have a plan of action and we know what is needed for the New Zealand economy to turn it around. The New Zealand economy is in recession. I invite anyone who does not believe that to look at what is happening around the world. The US and the Australian economies are teetering on the edge of recession and those countries are looking at ways of avoiding going into that situation. New Zealand has been in recession under the Labour Government that was in power before the election and now it is time to turn that around. Now it is time for the Government to make some constructive changes that will deliver a stronger economy. 
This bill is the first step. It is the first legislation the National Party has put through in Government and it will deliver some relief for hard-working New Zealanders. Hard-working New Zealanders want to see a reduction in the taxes they pay to the Government. They need to see a reduction in taxes because they are struggling out there. They are struggling to pay their bills and meet their mortgage payments at the high interest rates that have been inflicted on them for many years under the previous Labour Government. They are struggling to pay the high expenses that have been inflicted upon them by the previous Government through the high inflation it controlled in this economy. 
It is time now for a change of approach. It is time now for relief for hard-working New Zealanders. It is time now for these tax cut packages to come forward and for New Zealanders to see a Government that cares acts and delivers something constructive to hard-working Kiwis. That is what they are going to get under the National Party. They will get a Government that delivers that looks forward and that promotes solutions. That is what this bill is about today. 
Let us look at the personal tax cuts. They are significant tax cuts. They are the first step but they are significant. When we look at those percentage and rate decreases we see it is in the best interests of New Zealanders to give them that money so they can deliver to their families the future they want. Those cuts will deliver the right signals and incentives for New Zealanders to go out there and get a good education take risks and progress their lives and the lives of their families. That is the whole point of a tax regime. It is to provide those signals and incentives at the same time as providing the Government with the revenue to deliver its social services. 
This is a robust tax regime that takes into account the need for New Zealand families and individuals to have some tax relief at this point in time and the National Party will deliver that tax relief over the next week or so. The independent earner tax credit is an initiative for many New Zealanders who have missed out who want to get into the home ownership market who are struggling through getting an education and into the workforce and who want to build up a future for themselves so they can have a family and deliver what we need in New Zealand—strong and sustained growth for our economy. It is good to see the National Party coming out and delivering for those people and giving them the independent earner tax credit an initiative that will deliver much-needed finances to individuals who are working hard doing the right things making the right decisions and need to get that support from the Government as they make those investments in their future and the future of this country. 
Let us look at other parts of this bill which are very important for New Zealanders. The KiwiSaver changes enable a lot more New Zealanders to get into the KiwiSaver regime. At the moment it is a regime that is dominated by people who are putting their families into it and taking advantage of a system. We need to let more New Zealanders have the ability to get into KiwiSaver and into the savings regime. The Labour Party’s attitude is that it knows what is best for New Zealanders. That is not the case. New Zealanders can make their own decisions. They need to have the opportunity to make those decisions and by lowering that percentage this bill gives more New Zealanders the chance to get into a regime where they can save for their future and deliver what they need to deliver for themselves and their families. 
The research and development tax credit is another important part of this legislation. We have to look at what is important for the research and development industry and that tax credit was not delivering what was needed. That was never going to be what was needed. Let us look at what was happening. The Labour Government members just sat there while AgResearch laid off staff. They were not interested in research and development. It was all about the mantra of what they thought sounded good and the reality is we need to do constructive work in the research and development industry and deliver real solutions. The biggest solution we can deliver for research and development in New Zealand is to have a stronger economy. Without a stronger economy companies will not engage in research and development and if we are in a recession like the Labour Party has delivered us then it does not matter how many tax credits are given people will not go into research and development. If they do they will be using it only to project something that is different from what they are doing in their business. 
The National Party understands what is good for the New Zealand economy. We understand what would benefit research and development. It is to give a strong vibrant economy. That is what this tax cut package is part of. It is part of delivering that strong economy. We need the economy to function and grow and in order to deliver that we must take some important steps. This is the first step in that process and a very good step it is. We are looking at an approach that is constructive well meaning and in the best interests of New Zealand. We will not take the approach the Labour Party is taking this morning of coming to the House and trying to use fear and scare tactics and saying that this is not in the best interests of hard-working New Zealanders. No we will actually go out there and deliver constructive solutions for New Zealand. 
People in the street have come up to us and said that they are confident and very supportive of the National Government because they see a Government that is making decisions a Government that is actually willing to go out there and build a better future for New Zealanders a Government that is not trying to project fear to put people down and to say that it knows best which is what the Labour Party does in this House time after time. It is time for a different direction in New Zealand. It is time for a direction that actually delivers solutions. It is time for a direction that looks at what economic fundamentals are required in the country to deliver the growth we need. That is what we will get under the National Government. We see the previous Minister over there laughing away. He does not care about growth; he never has. He never delivered it. He just waited for somebody or for some other world economies to deliver him economic growth. He was not taking the steps but National through this bill has taken the first steps towards delivering that stronger growth economy.