Foss Craig: Goods and Services Tax (Exemption of Healthy Food) Amendment Bill — First Reading 
Foss Craig: Goods and Services Tax (Exemption of Healthy Food) Amendment Bill — First Reading 
[Volume:666;Page:13805] 
CRAIG FOSS (National—Tukituki) 
: 
 I would like to share with the House the fact that National will not be supporting the Goods and Services Tax (Exemption of Healthy Food) Amendment Bill— 
Hon Members 
: Oh! 
CRAIG FOSS 
: —members on the other side groan—but I fully acknowledge the sentiment the aspirations if you will and the motivation behind this bill from the member Rahui Katene. I fully acknowledge that and I will speak a little bit more on that in a moment. 
I point out that New Zealand’s GST system is world-renowned. It is the envy of many of the countries that we compare ourselves with or the countries that many people visit. The system has been relatively unchanged in the many years—perhaps 25-odd years—it has been in existence. I note that when the Labour Government in the 1980s brought in GST from zero to 10 percent there were no exemptions to speak of. Exemptions were considered I understand but the then Labour Government chose not to make them. When Labour increased GST from 10 percent to 12.5 percent again it did not exempt items such as healthy food which this bill specifies. I note that the most recent Labour Government from 1999 to 2008 considered exemptions along the way but the point is that it chose not to exempt healthy food—or any other items for that matter—from GST. I fully expect members on the other side will speak in support of the bill as the previous member just noted. That is their right of course but when they do speak their credibility is totally undermined because suddenly they will have become supportive of such an exemption. Of course that is the nature of politics but it is somewhat shallow. But I guess we will hear the speeches from members on the other side. 
There is no doubt that the intent of the bill is to encourage a healthier diet and healthier living which is absolutely fine. It also has to be noted that many families already buy healthy food and vegetables but when the cost of GST is taken off then someone somewhere has to bear the extra taxation cost— 
Hon Phil Goff 
: Maybe the wealthy. 
CRAIG FOSS 
: —maybe—whatever the amount may be. We can see how it can become complicated. I could make the same arguments for how healthy red wine is. Red wine is very good for one’s heart apparently. I could make a case for exempting red wine from GST on the basis that it is good for health care heart care etc. But I will not. 
I will make a couple of further points. Some communities particularly lower socio-economic communities are able to access fresh fruit and fresh vegetables right now. I raise the example of Te Aranga Marae in Flaxmere where there is a community garden. Most of the seeds and most of the plants are donated by the community so there is zero GST for the people who participate in the garden; there is a great community spirit. The garden is managed by my good friend Henare O’Keefe. But my point is that the ability to grow and to access fresh fruit and vegetables is right there in our communities right now regardless of the debates on raising GST or not. 
Hon Annette King 
: That’s because you live in Hawke’s Bay. Try Newtown in Wellington. 
CRAIG FOSS 
: The member opposite tries to identify that it relates just to Hawke’s Bay. Well then maybe we should have exemptions in other places down south perhaps rather than in Hawke’s Bay. We can start to see how complicated this could get. For example an apple on a tree would not attract GST but an apple that has been washed and bagged would. Again I fully acknowledge the sentiment of the mover of the bill and I value her contribution but I really question what I am sure we are about to hear from members on the other side when they speak beyond this particular bill and perhaps somewhat dilute the good intent behind it. 
I also note as the previous speaker noted that in other jurisdictions GST or VAT is not charged on certain items. That is quite correct. But again after much debate most of those jurisdictions look quite enviously at New Zealand’s GST system as it was introduced. It has essentially stood the test of time over 25 or 30 years across Governments and across Parliaments and it still remains virtually unchanged. Of course there will be some politicking from some members about the measure but to be true to the integrity of GST and to be true to the integrity of debate a consistency of position is probably quite admirable. Thank you.