Connell Brian: Taxation (Annual Rates Venture Capital and Miscellaneous Provisions) Bill — In Committee 
Connell Brian: Taxation (Annual Rates Venture Capital and Miscellaneous Provisions) Bill — In Committee 
[Volume:621;Page:16582] 
BRIAN CONNELL (National—Rakaia) 
: 
 I have not yet had an opportunity to take part in this debate so I have come down here to the Chamber tonight and listened very carefully to the arguments that have been put forward. I have found myself agreeing with most speakers with some notable exceptions. The contribution from Shane Ardern I found to be particularly enlightening. The taxation system that is now in place in this country is terribly complex. I would have thought that this bill would be an opportunity for the Government to do something to try to alleviate the huge taxation burden imposed on hard-working Kiwis. Mr Ardern mentioned an old saying: “If it moves tax it.” and he had an iteration of that. Well there is another iteration of that which I want to share with members: “If it moves tax it and if it still doesn’t move kick it until it does and then tax it.” That is exactly what this Government is doing. 
Michael Cullen is held up to us as someone who is fiscally responsible because he skites about a surplus of $7.4 billion. To anyone who has a half-reasonable understanding of fiscal matters that is not something to brag about. In fact Michael Cullen is being fiscally irresponsible. New Zealanders need tax relief. We have an unlikely ally on that in a member of the Government. John Tamihere believes that we should have tax relief as does the Opposition. Strangely enough he is a very strong proponent of the ACT policy of flatter taxation. In fact John Tamihere has gone so far to the right now that he thinks there should be zero taxation. He will not get a lot of support for that from his colleagues but we on the Opposition side of the Chamber think he is halfway right. 
The New Zealand First member took a call before. I say to the young member that on the issue of venture capital he is quite wrong. Conceptually what has been suggested in this legislation is right. We need to attract more capital to this country and a vehicle like this legislation will assist with that. Unfortunately—and this is where I agree with the member—this vehicle in terms of the way it is constructed simply will not do that. I also side with the member when he says that businesses in New Zealand deserve tax breaks. Small business after small business is being burdened with an ever-increasing level of taxation. That is the issue that John Tamihere when he was a Cabinet Minister articulated. I thought he would do something about de-layering tax. 
Hon Richard Prebble 
: He’s leading by example. 
BRIAN CONNELL 
: He is leading by example but I was hoping he would do it in a more subtle way rather than by just avoiding the issue. 
The Minister in the chair David Cunliffe has had by my count four questions asked of him this evening: two of them by the New Zealand First member one by the Green Party and one by the ACT party. The Minister has steadfastly refused to get up and respond to those questions. I know he will not disappoint me. I know he will get to his feet and answer some of those questions because it is essential that the people of New Zealand understand what the Minister is trying to do in constructing this legislation. I believe that questions that are fairly put need to be fairly answered. 
The issue around Maori trusts has been debated. I understand that there were issues of double taxation—and I do not for one moment suggest that what was happening was fair—but one does not fix that problem by creating another one. One does not pick out some poor businesses based on race and think that that is a reasonable solution. That is not the way to deal with the issue. The Minister in the chair who has just caught my eye knows that I am right. He should be constructing legislation that takes up the issue with regard to all the businesses that are struggling. I ask the Minister what is wrong with helping out poor non-Maori businesses as well as Maori authorities.