SpeechHon DAVID BENNETT (National): Thank you Mr Speaker. That member Barbara Edmonds just tried to rationalise this bill by saying that because you can't tax the capital gains the interest deductibility should not be claimable. That was her rationale for this bill and to have that. That is just bizarre tax planning because actually—[Interruption] No it's not because the income that anybody earns on that house is taxable. The rent that the landlord gets is taxable income to that landlord. They can claim in the past an interest deductibility but they are taxed on their income and that is where that was quite a deceitful speech from that member trying to make a rationale for something that is not correct. If she's a tax lawyer God help us! She's got no idea. There is tax on revenue. We are talking about revenue. We are not talking about capital. There's a huge difference in tax between revenue and capital.Ingrid Leary: Point of order. I believe that member referred to my colleague as deceitful. That's against the Standing Orders.Hon Michael Woodhouse: Point of order. I'm sure I don't need to point it out but the question of the accusation that Ms Leary has levelled at Mr Bennett requires intent and David Bennett never said that it was her intent to deceive. He mentioned that the speech had an element that could be considered that. There was no question of intent.ASSISTANT SPEAKER (Ian McKelvie): Thank you. Hon DAVID BENNETT: Now if we look at this bill what does it do? It puts up tax rates for those that actually get out there and earn some income. It takes away the ability to take an interest deductibility for those people in the business of providing rental homes. All of this will create a dumbing down of New Zealand society. There is no incentive to go out there and earn more. There is no incentive to buy an asset that provides a service for other people. If anybody has to follow these rules then that will lead to as the ACT Party said an increase in rentals for those seeking accommodation. That will directly hurt the very people that the Labour Party always campaigns on saying they're looking after.This will hurt middle to low income New Zealanders more than anybody else because there's no incentive for the best and brightest in New Zealand to stay here. They might as well go to Australia on the next plane. There's no incentive for somebody to have a rental house and to own that as a business because they can't get any interest deductibility on that business against the income of that business which is the rent they receive. As David Seymour rightly said that will force those people then to put up the rents. So on one hand the people that are on low or middle incomes in New Zealand won't have the job opportunities because those on higher incomes won't want to invest in this country and at the same time their costs are going to go up in their rentals. This is great economic policy from the Labour Party. It actually hurts middle and low income New Zealanders the very people they purport to represent. Where's the answer from the Labour Party? They're quiet. They're sheep. They had all this great economic analysis five minutes ago. Where's your answer? There is none. They are hurting the very people that hurt the most under an inflationary environment. That is the effect of this legislation. It is dumb legislation. It is at the wrong time for New Zealand where you have inflation. It will create an environment where employers that want to have the best people will have to increase their wages which means more inflation going to that part of the market. It means that those that have rental accommodation will increase the rents putting more inflation in that kind of the market. The net effect of both of those is to increase inflation overall.It's going to hurt middle and low income New Zealanders. It is dumb policy. It's not going to earn the Government a terrible lot considering what they're going to have to pay to keep up with that inflationary environment. Are they going to increase the benefits increase payments increase accommodation supplements to match that? Is that the great plan? And that increases inflation again and then the Government has to do the same thing again. It is the stupidity of the Labour Party that caused this and it is the stupidity of their policies that will create even more friction in New Zealand.Nobody voted for the Labour Party and these policies. They were only put into place by Winston in a moment of rage. But the effect of them will be to hurt New Zealanders and this policy is detrimental to the very people that we should be looking after now. The low and middle income New Zealanders will pay the price for these dumb rules. They will be the ones that lose their jobs they will be the ones paying higher rents and they will be the ones that lose out of this legislation.