Tabuteau Fletcher: Taxation (Land Information and Offshore Persons Information) Bill — Second ReadingText is incorporated into the Bound VolumeTabuteau Fletcher: Taxation (Land Information and Offshore Persons Information) Bill — Second Reading[Sitting date: 08 September 2015. Volume:708;Page:6317. Text is incorporated into the Bound Volume.]FLETCHER TABUTEAU (NZ First): I would just like to take the opportunity to reply to some of the previous speakers because it is quite frustrating to hear the Minister for Economic Development talk about how the sell-off of New Zealand assets and land is coined as an investment. It just does not make any sense whatsoever. And then it was frustrating to be completely honest to see the Hon Todd McClay speaking on behalf of the Minister in charge of the bill the Hon Louise Upston and then the chairman of the Finance and Expenditure Committee David Bennett stand up and simply go through the motions. But as was noted before the Taxation (Land Information and Offshore Persons Information) Bill is a bill that is simply going through the motions and it does not achieve any of the stated objectives which the National Government has actually mangled in order to turn the legislation into something non-offensive. It does not even achieve what it set out to do in terms of identifying where the problem is and what we can do to help real New Zealanders cope with this almost maniacal rise in property prices in the Auckland housing market.The Minister spoke about the short time frame that he and the Government had to get this through but that just highlights an ongoing dilemma that New Zealanders are facing every single day more and more often in terms of the select committee process: there seems to be no time for consultation. There seems to be no time to listen to real New Zealanders. As it turns out there was no time for the Minister’s own department. There was no time for the Minister’s own department to do a detailed analysis of the cost-benefit and what the pros and cons of this legislation would be because it has been so rushed. The Inland Revenue Department said it itself.There was a statement from the Minister that said that the intent is to capture those who are evading their obligations to pay tax but what we are not being told about are the unrealistic demand-side pressures that we are seeing from overseas investors coming in to this country and artificially inflating the prices of the property market. It is a “waste of time” tax anyway. It is going to be the “dim-line” test which will achieve absolutely nothing. The experts on tax in New Zealand have said that it will achieve nothing. New Zealand First says that it will achieve absolutely nothing. This bill does not help us to understand New Zealand’s residential property market and where the pressures are.The Minister himself said that the Inland Revenue Department was ignored in terms of its advicegiven. The Inland Revenue Department said that there was no reason to exempt main homeowners from the requirements. There are too many loopholes already and so to exempt main homeowners and buyers—it has been raised so many times on this side of the House just pointing out the reality of the situation. The information is already there; it is not an extra collection of anything. It is simply a consolidation of that data so that we understand the property market. It would not increase compliance costs. The definition of “main home” is the place of residence with which people feel “the greatest connection”. Where on earth does that come from? There is no precedent in any legislation for that terminology for that definition. And this Government talks about reducing compliance costs and not wanting to confuse people. Goodness’ sake! This new definition which comes out of nowhere will do that very thing. It will confuse everyone and it will in fact confuse pieces of legislation that are trying to achieve some objective which New Zealand First suggests will not be achieved at all.The Minister spoke about money-launderers. This bill will not help the Inland Revenue Department to identify or do anything with the money-laundering issue that New Zealand has. Funding the police properly might be a good start to that but that is not what we are here to talk about today. But unfortunately I have to disagree completely with my Labour and Green colleagues—this bill does not start us down the track. This bill starts us down a pathway that is not so much filled with potholes and crevices; this bill starts us down a pathway that goes all of 2 feet and ends in completely empty air. Mr Bishop spoke about the bill being well intentioned and well meaning. Perhaps he did not actually read the bill. This bill dodges the whole point of the legislation around trying to identify what the problem is and how we address it because we know that foreign investors—not new New Zealanders but foreign investors—are creating a real problem in terms of young Kiwi couples for example wanting to buy their first home in Auckland.All New Zealand First wanted was a comprehensive register so that we could have a meaningful debate and discussion on that problem. We know it is a problem. Mainstream New Zealand economists know it is a problem. But this Government refuses to allow for a meaningful compilation of data so that we can have a meaningful debate about it. It does not even actually achieve the National Government’s mangled attempt at the objective in terms of identifying who these investors are because there are so many loopholes—which I will get on to in a moment—that anyone can drive through them. Then even if the legislation did what it said it was going to do we come to the brightline test—which is better termed a “dim-line” test—which will achieve nothing in terms of collecting a tax or dampening down the Auckland property market. Mr Bishop speaks of people worrying and misinterpreting the legislation around their being taxed for their personal homes and yet National refused to give New Zealanders a good and meaningful consultation period in the select committee process. It is just an overall farce.This Government continues to deny the demand side of the equation. Government members keep talking about a lack of supply but we know that demand for Auckland property is huge and it is not just Kiwis playing in that market. We have 60000 to 70000 new immigrants coming into New Zealand but apparently only 10000 to 12000 of them are actually skilled labourers those new Kiwis whom we actually need to help grow this economy. This Government is deliberately missing the point. This is a National Government that is led by a global trader. It is adamant and it insists on allowing the rest of the world to buy up our productive land our assets and our homes. We know why everyone around the world wants to buy our land but why is this Government so insistent on selling it off and allowing it to be sold off to foreign investors? It talks about investment but it is not an investment in New Zealand. I just wanted to point out to the Prime Minister that they do not let this happen in Hawaii. To buy land to buy a residential property in Hawaii you not only have to be an American citizen but also have to prove your heritage to the Hawaiian whakapapa—your background there—in order to buy land there. So it just does not make any sense.New Zealand First wants a full and comprehensive register so that New Zealanders can know the truth about this situation. This bill lacks substance. It is full of so many loopholes that although New Zealand First supported it through the first reading to select committee so that we could have a robust debate and flesh out the issues none of those were addressed. In fact it has become even more vacuous and so New Zealand First cannot support this bill. Thank you.