Woolerton R Doug: Taxation (Depreciation Payment Dates Alignment FBT and Miscellaneous Provisions) Bill — Second Reading 
Woolerton R Doug: Taxation (Depreciation Payment Dates Alignment FBT and Miscellaneous Provisions) Bill — Second Reading 
[Volume:629;Page:1896] 
R DOUG WOOLERTON (NZ First) 
: 
 New Zealand First intends to support the Taxation (Depreciation Payment Dates Alignment FBT and Miscellaneous Provisions) Bill—a long name for a very long bill. I would like to congratulate our Finance and Expenditure Committee chairman Shane Jones who led us through this in a most able fashion. I am sure it was more difficult for him than it was for me coming into the bill process a bit late after the last general election when a lot of work had already been done on the bill. However that is the nature of things. Mr Jones did a great job and he will continue to do so. We can already see his expertise in business coming to the fore in that committee. 
New Zealand First encourages any bill that looks to make the business of doing business easier that simplifies some complicated matters and that gives encouragement to people in effect to go out there and do it for themselves. In some cases this bill does make a couple of moves to protect revenue and we understand that that has to be done. But in the main the bill gives some comfort to businesses and helps them on their way. 
In particular I want to talk about a Supplementary Order Paper which will be lodged in the name of the Rt Hon Winston Peters that addresses issues in the racing industry. That industry has been promised relief for many many years by just about all parties in this House and we are proud to be able to deliver on some of those things now in the name of New Zealand First. I have been asked to recognise particularly the Hon Peter Dunne who as Minister of Revenue has had his officials do a fine job on this bill and who has been able to accommodate provisions around racing and make them work. We recognise his input and feel that this matter is probably close to his heart as well. 
For too long this country’s racing industry has been at a disadvantage when compared with other gambling enterprises—namely the casinos that have come of late into our country and have caused a lot of angst amongst the racing fraternity. In a way they have stolen a march on an established industry that employs—depending on who one talks to—between 25000 and 30000 people. New Zealand First has always made no bones about the fact that we believe in incentivised messages going out to the public and we particularly believe that the taxation system is the avenue we should look to in order to provide those incentives. With the help of the Labour Government and the Hon Peter Dunne we are able to make these things come to fruition. 
The racing industry for too many years has been at a disadvantage. That will be fixed now by the totalisator duty being reduced to 4 percent which brings it into line with levies for casinos. We think that that is a huge step forward. 
Dr the Hon Lockwood Smith 
: Which part of the bill—which clause? 
R DOUG WOOLERTON 
: Oh there are plenty of clauses. I could read out the clauses because I have them all written out in front of me. But as the member very well knows I am not a technical person so I do not intend to do that. 
It is important that people understand that we also have in the Supplementary Order Paper to be introduced into the bill depreciation rates at a far higher level for stallions and brood mares in the racing industry. People understand that a lot of these horses are not productive. They need to be written down more quickly than they have in the past and this Supplementary Order Paper will provide for that. The bill will take notice of these things and provide a better deal for people in the racing industry to the extent of some $30 million. 
It is always interesting to tell people of the differences between the racing industry and casinos. In casinos one enters a room that is usually without windows and usually without a view of anything else but the machines that people want to play on. In the case of racing not only is there a family environment but there is an industry behind it which is so important to our well-being. It is no secret to anybody that we also believe that this country’s export industries need help. The racing industry has a huge export component and it will have a far greater opportunity to carry that out on a fair basis with the passage of this bill. 
One of the things that interested me as I sat in the committee was that this bill intends to give a lesser rate of depreciation to buildings and no doubt that will cause a fuss in real estate circles. But one of the ironies in my mind has always been that while we are allowing depreciation rates on buildings particularly large commercial buildings for people who own them the buildings are also appreciating. This bill takes care of some of that. 
Another matter that this bill takes care of is the so-called flip-flop leases of motorcars whereby an employee leases his or her motorcar to his or her employer—in many cases a partner in the same firm—for the working hours and then the lease lapses for a period while the employee uses the motorcar in a private capacity. As members can imagine it is really nothing more nor less than a mechanism to get around the fringe benefit tax. When I spoke about protecting the revenue this is one of the areas where this bill does not provide necessarily a benefit. I believe that people will not be hindered in their endeavour to get a tax write-off on their motorcars; they just need to do it in a far more transparent and dare I say it honest fashion. 
So there are areas of this bill that protect the revenue make things fairer and more transparent and get rid of what in effect are just mechanisms to avoid tax. We will be backing this bill and we look forward to others in the House doing likewise.