Cunliffe David: Questions for Oral Answer — Questions to Ministers 
Text is incorporated into the Bound Volume 
Cunliffe David: Questions for Oral Answer — Questions to Ministers 
[Sitting date: 14 March 2013. Volume:688;Page:8559. Text is incorporated into the Bound Volume.] 
9. 
Hon DAVID CUNLIFFE (Labour—New Lynn) 
 to the  
Minister of Revenue 
: What reports has he seen regarding his proposal to apply fringe benefit tax to employee car parks in the Auckland and Wellington central business districts? 
Hon STEVEN JOYCE (Minister for Economic Development) 
 on behalf of the Minister of Revenue: Mr Speaker—[ 
Interruption 
] If I could just address the member I have received a number of reports—[ 
Interruption 
] Oh thank you. 
Mr SPEAKER 
: Order! If the Minister would proceed with the answer please. 
Hon STEVEN JOYCE 
: I have received a number of reports. 
Hon David Cunliffe 
: I raise a point of order Mr Speaker. I am not offended by the Minister having trouble seeing the questioner but he would not look at the Minister sitting next to him during— 
Mr SPEAKER 
: No that is not a point of order but it is a good example of how points of order can come if the Minister does not get on with the job of answering the question. 
Hon STEVEN JOYCE 
: I have received a number of reports from Inland Revenue Department and Treasury tax officials on proposals leading up to and following the consultation paper for recognising salary trade-offs as income which I note for the benefit of the member in the House was released back in April 2012. Policy consideration of this issue began in fact in 2010. The review was part of a package of base broadening and integrity measures which included other matters such as the treatment of mixed-use assets and widening the income definition for social assistance purposes. As the member will be aware the bill is currently before a select committee and the Government will carefully consider the select committee’s report to the House. 
Hon David Cunliffe 
: Does he agree with analysis by independent accounting firm Lock and Partners that shows that the compliance cost of collecting his car-park tax is over $30 million per annum about double the revenue that the Inland Revenue Department suggests it would collect? 
Hon STEVEN JOYCE 
: On behalf of the Minister of Finance it is fair to say I think that the report is perhaps a bit of a stretch in its estimate of compliance costs. 
Hon David Cunliffe 
: I raise a point of order Mr Speaker. To assist the Minister he was asked as the Minister of Revenue but he is replying on behalf of a different Minister. Perhaps he is confused or would like to start again. 
Mr SPEAKER 
: He is to answer the question on behalf of the Minister of Revenue. 
Hon STEVEN JOYCE 
: Can I thank that member for his assistance and say that my view is that the numbers on the report that the member raises are perhaps a bit of a stretch indicating as it does a cost of $5000 per annum for medium businesses and $8000 in compliance costs per annum for large businesses. But nevertheless officials have been asked by the Finance and Expenditure Committee to look at compliance cost issues and it certainly would be unreasonable to have a tax if the compliance costs are very high. So once again we look forward to the response from the select committee. 
Hon David Cunliffe 
: Given these compliance burdens why did he break John Key’s pledge to “not entertain suggestions of applying FBT to on-premises carparks” and to “remove a substantial amount of the paperwork” from the fringe benefit tax system or does he agree with the finance Minister Bill English that Mr Key’s promise is now worthless because “the tax environment has changed”? 
Hon STEVEN JOYCE 
: I would say that I think a fair amount has changed since that statement was made back in April 2005 which was when Don Brash was leader of the National Party. Since that time we have had three leaders of the Labour Party and maybe a fourth leader of the Labour Party— 
Mr SPEAKER 
: Order! That does not help the answer. 
Hon David Cunliffe 
: Does he agree with commentator Vernon Small that the car-park tax is one of “a series of petty tax increases that are more about the elusive Budget surplus than fairness and good tax design.” and includes measures like the paper boy tax increased prescription charges increased petrol excise student loan costs and his equally popular proposals to tax private cellphone use and accommodation for rebuild workers in Christchurch? 
Hon STEVEN JOYCE 
: That was a very long question but in terms of the characterisation reported by the eminent Dr Small the issue in regard to fairness is actually quite an interesting one. I think the officials can make the case that this actually would create more fairness because currently different types of car-parks in cities are treated in different ways. Nevertheless the compliance costs are important. In fact if the Government chose not to go ahead it would actually be I think characterised as not particularly fair in relation to different car-parks. But of course practicality comes into it as well and that is why we are watching closely to see the outcome of the select committee’s deliberations. 
Hon David Cunliffe 
: Does the Minister of Revenue consider that he can now continue in his portfolio given that there are reports that “National Party officials at the very highest levels” have told media that they are “trying to shift the heat to Dunne” and that this is a blatant abrogation of the confidence and supply agreement with United Future which demands “confidentiality collective responsibility and recognition of his position as Minister of Revenue”? 
Hon STEVEN JOYCE 
: I think there is an old statement about believing half of what you hear and a third of what you see and I think it would apply in this particular instance. 
Hon David Cunliffe 
: I seek leave to table analysis by independent chartered accountants Lock and Partners showing that the compliance cost of this tax is twice the recommended— 
Mr SPEAKER 
: And is it available publicly? I suspect that it is not. 
Hon David Cunliffe 
: No not publicly. 
Mr SPEAKER 
: Leave is sought to table that document. Is there any objection? No there is none. 









Document by leave laid on the Table of the House. 
Hon David Cunliffe 
: I seek leave to table a copy of the confidence and supply agreement between the Minister of Revenue’s— 
Mr SPEAKER 
: No that is certainly available. 
Hon David Cunliffe 
: I seek leave to table this rather endearing little moniker “No car-park tax. Stop John Key’s—” 
Mr SPEAKER 
: No. That is not necessary to inform the House. 
Hon David Cunliffe 
: I raise a point of order Mr Speaker. This is not yet readily available— 
Mr SPEAKER 
: And it certainly—[ 
Interruption 
] Order! The member will resume his seat. [ 
Interruption 
] Order! And it will not be tabled either.